Zayden is currently at start-up incubator, WhatNot Studios in Bangkok, Thailand. Originally from Singapore, his inquisitive nature brought him overseas to gain experience and learn new things.
It is that same nature that got him into DeFi and Web3, often spending hours a day reading up on it. Self-proclaimed Web3 enthusiast, and investor in cryptocurrency.
Guest Author: Zayden Qu
The last couple of years has not been kind to the credibility of cryptocurrency, from the LUNA crash to the FTX scandal, it has left many investors in losing positions and many potential investors afraid.
For the longest time, my view of cryptocurrency and decentralised finance (DeFi) are that of volatility and risk, akin to gambling. After doing a deeper dive into the rabbit hole, my view has since changed. Let me show you why.
If you are here, perhaps you too think that in the realm of greatest risk lies the potential for the most significant opportunities.
Although it is generally prudent to take risks when you have the time and money to do so, it should most definitely be calculated. So join us in obtaining ample understanding before delving into the choppy waters of cryptocurrency/DeFi.
If you aren’t a developer or a Web3 enthusiast, you’re likely wondering: “What are these terms talking about?”. Don’t worry, I was in the exact same situation when I first dipped my toes into Web3.
The barrier of entry is really high, and I often find myself wondering: where do I even start researching? Fret not, you are at the right place to navigate through the intricacies behind Web3 technology and you’ll be surprised at how simple these terms are to pick up.
Let us learn and understand together. I promise by the end of it, you’ll be an expert in the field, ready to do your ownresearch, form your ownconclusions and make your owninformedchoices.
Why is it all the rave in 2024?
2024 is looking to be a crucial and exciting year for DeFi and cryptocurrency. Not even a month into the new year, we already have the spot Bitcoin ETF approval, and SEC vs Coinbase court hearing. Not to mention the eagerly awaited Bitcoin halving happening in April 2024 and the potential Ethereum spot ETF approval deadline in May.
What is Blockchain?
Before diving into DeFi and cryptocurrency, let us first understand the basics of the technology it is built on, blockchain. It is essentially a decentralised digital ledger that is secure, transparent and immutable.
IMAGINE:
- A shared document, where each edit on the document is a “block” that becomes tethered to the previous edit, creating a (block)chain of information.
- It is decentralised, meaning there is no ONE authority controlling this chain of information, instead, digital copies of it are distributed to everyone in the network.
- Thus, every edit (new block) has to be validated by everyone* (It is now done as a node) before it gets added to the chain, making it virtually impossible to alter or falsify information on the blockchain.
Why should you care about it?
With the advent of AI technology, NVIDIA is continuously breaking all time high in the stock market, in fact, a $10,000 investment into NVIDIA 10 years ago is worth more than $1 million now. By investing in the right things early, it is incredible how much your money can grow.
Image from https://www.officialdata.org/us/stocks/s-p-500/1980?amount=1000&endYear=2023
So, how early are you to Crypto/DeFi?
Currently, only 4.2% of the world and 15% of US citizens are involved in cryptocurrency. Guess when was the last time only 15% of Americans were involved in the stock market? 1980s. And by the 2000s, the percentage jumped to 52%.
Now imagine you are in the 1980s, interest in the stock market starts to bloom, federal laws on investing start to relax and online investing in the stock market begins.
- You decide to put in $1000. Today, it’ll be $120,975, that’s an increase of 12,097.5%. Yes. That’s how early you still are to the cryptocurrency market.
Image from https://www.pbs.org/fmc/book/14business6.htm
Next week…
However, don’t get too excited and jump into it blindly, we are only beginning to scrape the surface. Stay with us over the next couple of weeks as we help you understand all the nuances involved with DeFi, before you make your own informed choices!
References
https://triple-a.io/crypto-ownership-data/#
https://www.pbs.org/fmc/book/14business6.htm
https://www.officialdata.org/us/stocks/s-p-500/1980?amount=1000u0026endYear=2023
