Crypto Currency Investing Chapter 5 Summary: Disruption

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Like it or not, blockchain and cryptocurrencies are becoming intertwined in most industries.

This trend will continue.

Algorithmic stablecoins are a type of cryptocurrency that maintain a stable value by tracking the price of other assets or currencies.

When traditional market strategies are implemented, they typically aim to increase the money supply and encourage spending. Ideally, this leads to long-term economic growth.

Algorithmic stablecoins work on a similar principle but use algorithms instead of human decision-makers. These algorithms respond to market changes in real time.

There are strong signs that governments are viewing stablecoins as a legitimate digital currency. This will play an important role in global finance.

The creation of a Central Bank Digital Currency (CBDC) means that there will be fiat currencies in digital form, which will have the backing of the issuing country's government.

Terra is a blockchain payment platform for algorithmic stablecoins. It helps users to save, spend, trade, or exchange Terra stablecoins instantly.

The main purpose of the Terra protocol is to track the price of any fiat currency.

The network has two main cryptocurrency tokens, Terra and Luna.

Terra tracks the prices of individual currencies. Each token is named after the currency it tracks, such as TerraUSD.

Luna acts as a staking token and is used for governance and mining. It absorbs the price volatility of Terra and its value is linked to the use of Terra.

DeFi 2.0 is the second generation of decentralized finance protocols. It provides a simpler solution than DeFi 1.0 for things like crypto lending and yield farming.

With DeFi 2.0, crypto lending can be scaled and provides a more consistent cash flow for the ecosystem, therefore reducing volatility.

Other than what has already been mentioned, blockchain and crypto have impacts on other parts of the financial sector such as:

• Stock market settlements
• Asset management
• Efficient payments
• Compliance processes (KYC)

Theta Blockchain is a decentralized video delivery network that aims to improve the streaming quality and efficiency while reducing costs.

Instead of depending on data centers, Theta uses a peer-to-peer network to make use of unused bandwidth.

With the co-founders of YouTube and Twitch TV on the Theta team and backing from Google, Samsung, and Sony, this is a massive market opportunity.

One of the pioneers of crypto in gaming is Axie Infinity.

In Axie Infinity you trade and battle creatures called Axies, which are NFTs. Players can earn real money just by playing.

This play-to-earn concept in gaming can have a real impact for some people, especially in parts of the world with lower incomes.

Read the next chapter here.

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