On this page, we will be Summarising the crypto intermediate section
Now we have seen some of the more advanced capabilities and opportunities available by moving onto blockchain technology or creating new concepts in the cryptocurrency ecosystem. These attributes allow cryptocurrencies to be affected by both Micro and Macroeconomic factors. As demonstrated from REITs and CEX v DEX moving/ integrating onto the blockchain allows all the current benefits of fiat microeconomics whilst minimising the “cost”, incentivising people to switch to cryptocurrencies. This influx of migration to crypto has impacted global economies, forcing them to implement bans and regulations; especially if they believe that their population is moving to crypto as an ersatz economy. For example China. However, most regulations are in place to protect the users and the validity of their trades from fraud and market manipulation.
The change will have both supply and demand side effects. The supply side: The validators will be incentivised to hold ETH, this means supply reduces also the burn rate will remain the same; further reducing supply. Resulting in a price increase. The demand side: with both a high yield and a reduction in energy consumption incentivising new users and existing users to buy in. this means demand has increased resulting in the price increasing. So this shows the change will benefit the user.
Web 3 differs from web 2 by not having centralised nodes ( Decentralised) This means no one entity has the power to control the individual nodes (Trustless and Permissionless). It will understand this info in a human-like way AI. Being no multiple nodes it will be ubiquitous.
An equity REIT acquires, manages, builds, renovates and sells income-producing real estate; resulting in their revenue mainly generated through rental incomes. Whereas an mREIT invests in mortgages so their revenue stream is generated through the interest on their investment. For example company A collects rent from their tenants each month = Equity REIT. Whereas company B generates income from the interest from the investment = mREIT.
-Makes real estate a liquid asset.
- Every investor can see the assets in a centralised marketplace.
-The security measures on blockchain guarantee ownership without legal documentation.
-Real estate can be divided even smaller minimising the barrier of entry for new investors.
Well done for completing this section, next we are going to learn about different cryptocurrencies on the Know your Crypto section...