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What is the time value of money (TVM)?
Understanding the time value of money is essential for making sound financial decisions and maximizing returns on investment.
Does the time value of money concept apply to crypto?
The time value of money concept can also be applied in the world of cryptocurrency. In fact, it is an important principle to consider when evaluating the potential profitability of investing in cryptocurrencies.
The use of crypto lending platforms is one way that the time value of money principle is applied in the world of cryptocurrencies. These services enable users to earn interest on their investments by lending their cryptocurrency to other users.
The supply and demand of the cryptocurrency, the duration of the loan term, and the risk involved with the borrower are just a few of the variables that affect the interest rate that users can receive on their cryptocurrency investments. Due to the time value of money, the interest rate investors can earn on their investment increases with the length of the lending period. Read More
Forget time-consuming DeFi practices — Simple solutions for auto-farming
DeFi is still in its infancy, yet companies are competing to offer the most convenient and high revenue-generator tools. The latest developments in the space are explored.
The world of decentralized finance (DeFi) opened a vast array of new opportunities with its explosion in 2020, but it also brought new challenges and profound risks to crypto users. Due to its decentralized nature and short history, the industry is difficult to regulate and can hardly provide a secure environment for its players.
Nowadays, anyone with access to the internet can lend, trade or borrow funds without the need for third-party intermediaries and participate in the DeFi space with next-gen financial tools forged on the blockchain and the help of smart contracts.
DeFi protocols include financial instruments developed to help investors maximize revenue and passive income, with the following being the most popular:
Staking means locking up tokens for passive income through rewards or recognition.
Yield farming is a subset of staking and can be compared to earning interest from money deposited in a bank.
Liquidity mining is a subset of yield farming, where liquidity providers receive extra compensation in addition to trading fees and interest in the platform’s own token. Read More
Utah Passes Law Recognizing Decentralized Autonomous Organizations
The Utah State Legislature has approved a new law, the Utah Decentralized Autonomous Organizations Act, providing legal recognition and limited liability to decentralized autonomous organizations (DAOs). This legislation, also known as the "Utah LLDs," was passed after the combined efforts of the Digital Innovation Taskforce and the Utah Blockchain Legislature.
The Utah DAO Act defines the ownership of DAOs and protects anonymity through bylaws compliant with the act. Additionally, quality assurance DAO protocols have been introduced to ensure clear nuances in tax treatment and updated DAO functionalities. This new legislation marks an important milestone in the legal recognition of DAOs and their role in the digital economy.
DAOs are organizations that operate on a decentralized blockchain network, allowing for decentralized decision-making and management. With the increasing adoption of blockchain technology, DAOs have emerged as a new form of digital organization, and they have already begun to play a significant role in various sectors of the economy, such as finance, gaming, and art. Read More
Algorand Wallets Hacked Again
Algorand-based wallets have been hit by security breaches in recent weeks, with MyAlgo and Algodex both experiencing hacks. MyAlgo urged users to withdraw their assets or rekey their funds after a February security breach that resulted in losses of around $9.2 million. In the past week, a targeted attack was carried out against a group of high-profile MyAlgo accounts. The cause of the breach is unknown, and the wallet provider has encouraged users to take precautionary measures to protect their assets.
Meanwhile, Algodex revealed that a malicious actor infiltrated a company wallet on March 5, similar to what is happening in the Algorand ecosystem. Algodex moved the bulk of its USD Coin (USDC) and native Algodex (ALGX) tokens to secure locations, but the infiltrated wallet was responsible for providing extra liquidity to the ALGX token. The exchange confirmed that $25,000 in ALGX tokens allocated to provide liquidity rewards were taken, but it would replace this in full. The total loss from the theft was less than $55,000, and Algodex users and the liquidity of ALGX were not affected.
The Algorand Foundation's chief technology officer, John Wood, confirmed that around 25 accounts were affected by the MyAlgo exploit, and it was not the result of an underlying issue with the Algorand protocol or software development kit (SDK). Read More
Innovations that will change the way we work and interact online.
The Markethive Social Market Broadcasting Network becomes more prominent daily as the blockchain-driven ecosystem for entrepreneurs with a non-adversarial, bi-partisan free speech ethic and the collaborative culture we rarely see on social media platforms today. Even the newer acclaimed, free speech platforms are partisan to the left or right and deal with de-platforming and boycotts from payment providers.
Unlike the social media giants, which only have one primary news feed algorithmically set by the central authorities, Markethive is integrating four news feeds to accommodate the multi-functional platform within the Markethive ecosystem.
The individual feeds are General, Video, Blogging, and Content Curation, and they are all accessible from the main page and can be algorithmically set by the individual user. The scope that Markethive has is enormous as it integrates all the vertical systems of the other platforms under one roof.
Social + Video + Blogging + Marketing + Curation + Broadcasting + Affiliate + Gamification + Cottage Businesses = Markethive: A Powerful Blockchain-driven Ecosystem
There is nothing out there like Markethive. We are an Inbound Marketing (automated marketing platform) like Marketo, Paragon, and even the wannabee MLM Onpassive platform. We are like Youtube, Instagram, LinkedIn, Twitter, etc., but will be superior to these legacy Web 2 media when we release all the aspects and layout of Markethive 2.0.
We have a dynamic social media interface and growing community with a strong collaborative ethos, with SaaS and broadcasting capabilities already operational. We are not waiting for the launch to access the services; they are already there for you to use to help you facilitate your business and increase your reach and following.
Markethive is enhancing and bringing the platform into the future internet with our new technology and interfaces, but still in keeping with the human touch. Read More
New legal opinion paper looks into the legality of staking services
The article published in Lexology looks into the future of stablecoins ahead of major regulations set to come down this year in the US.
The article, published by the law firm Wilson Elser, looks at current rules and regulations relating to the oversight and enforcement of crypto firms engaged in activities like staking and stablecoins.
With Ethereum’s transition to proof-of-stake, the Securities and Exchange Commission’s (SEC) recent scrutiny of crypto staking has raised questions on the practice’s legality, the article points out.
Staking as service:
With the emergence of “staking as a service” (SaaS) offered by numerous crypto firms and exchanges, investors can now lend their digital assets in exchange for potentially high returns. The concept is comparable to depositing cash in a bank account to earn interest, albeit without the assurance of Federal Deposit Insurance Corporation (FDIC) backing to safeguard the funds. Read More
Is security tokenization the 'Amazon-moment' for blockchain technology?
European regulators are debuting securities on public blockchains for retail investors — and it could be a big moment for blockchain adoption, according to Demelza Hays.
Blockchain technology is like a Swiss Army knife that can provide different solutions depending on the problem. Over the past decade, the use cases for blockchain technology have grown from money and payments to decentralized exchanges and nonfungible tokens. Right now, it looks like the next major blockchain use case will be tokenized stocks.
Today, investors are able to buy traditional stocks like Tesla from cryptocurrency fintech firms such as Bitpanda. However, these stock shares are not stored and traded using blockchain technology. The global cryptocurrency exchange Bittrex did briefly let investors trade tokenized stocks like Apple and Pfizer, but they suspended tokenized stock trading shortly after its debut. The reason cryptocurrency exchanges and traditional exchanges have not enabled tokenized stock trading is that it is still a legal grey area. Read More
What are Bitcoin ordinals?
Bitcoin NFTs — aka Bitcoin ordinals, aka digital artefacts — are a way to inscribe digital content on the Bitcoin blockchain.
The Bitcoin ordinals protocol was launched in January 2023 by Casey Rodarmor. The protocol allows inscribing of digital content like art onto the Bitcoin blockchain. Unlike nonfungible tokens (NFTs) on Ethereum and other blockchains, Rodarmor wanted to create an immutable on-chain presence of a piece of art, text or video. The genesis ordinal was a pixel art of a skull that Rodarmor inscribed on Dec. 14, 2022.
As the NFT space based on Ethereum’s ERC-721 standard skyrocketed in 2021, Rodarmor, who was a programmer and an artist, saw the opportunity to create a similar yet unique experience on the Bitcoin blockchain. His solution was Bitcoin ordinals, based on ordinal theory, which he went on to implement through 2022.
Ordinal theory concerns itself with satoshis, giving them individual identities and allowing them to be tracked, transferred and imbued with meaning. The ordinals hype really kicked off in February 2023, six weeks after the genesis ordinal was created.
The number of inscriptions doubled every week for a few weeks. However, the number could have been much higher if the infrastructure to inscribe and trade ordinals had been better planned and executed. Read More
What Is Yield Farming? Beginner's Guide
At its core, yield farming is a process that allows cryptocurrency holders to lock up their holdings, which in turn provides them with rewards.
Yield farming lets you lock up funds, providing rewards in the process.
It involves lending out cryptos via DeFi protocols in order to earn fixed or variable interest.
The rewards can be far greater than traditional investments, but higher rewards bring higher risks, especially in such a volatile market.
Yield farming involves lending cryptocurrency via, in most cases, the Ethereum network. When loans are made via banks using fiat money, the amount lent out is paid back with interest. With yield farming, the concept is the same: cryptocurrency that would otherwise be sitting in an exchange or in a wallet is lent out via DeFi protocols (or locked into smart contracts, in Ethereum terms) in order to get a return. Read More
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
