Fiat is a common abbreviated way of saying “fiat currency”. Fiat currency is what people generally think of when they hear the term currency. Put simply, fiat currency is government backed money such as dollars, euros, yen, and yuan. Fiat currency is backed by the governments word and is produced in an inflationary manner, in other words, more fiat is consistently printed and added to circulation. In comparison, cryptocurrency is backed by mathematical rules and can be inflationary, or deflationary, depending on those mathematical rules.
FOMO stands for fear of missing out. It is a common psychological occurrence which nearly everyone experiences. As it relates to cryptoassets, many people experience FOMO in relation to the price of various cryptoassets, particularly when the price of said assets is rapidly increasing. The thought is “wow, this thing doubled in value over night last night, I better buy some before it does it again”. People are afraid of missing out on potential financial gains. While this thought is common, it is not wise to make investment decisions based on FOMO. Emotional investing is generally not considered best practice and investing based on FOMO is a clear example of emotional investing.
A hardware wallet is a small machine made for securely storing cryptoassets offline. Hardware wallets are the most secure way to store cryptoassets and for this reason they are the preferred option for crypto storage.
The two best hardware wallets are trezor and ledger and they can be purchased by following those links.
Immutable is synonymous with permanent. An action that is immutable is one that cannot be undone. Digitally, immutability has been very hard to achieve because any information added to a computer can just as easily be erased. Blockchains are the world’s first immutable digital systems.
The Internet is a network of computers sharing information using the Internet Protocol or “IP”. IP packs up data and sends it across the Internet via phone lines, DSL cables, satellites and cell phone towers. Once the data arrives at its intended location or “IP address”, the Internet Protocol unpacks the information and makes it readable again. The “Internet” is not a collection of websites, but rather the protocol that allows computers and other devices to communicate with one another. The collection of websites which many people confuse with the Internet is actually known as the World Wide Web, or simply “the Web”.
A ledger is a place where transactions are recorded. Banks maintain a ledger which includes a full history of all the deposits and withdrawals on various accounts and ends in a final or current balance on the account. Many people with bank accounts also maintain their own ledger of transactions in their checkbook for ease of reference and accountability. Informal ledgers often exist between friends or coworkers as a way to keep track of who owes who what (think “I’ll get your coffee today, you get mine tomorrow”).
Liquidity is a term to describe the level of ease at which and asset can be bought or sold without affecting its price. Something with a high level of liquidity changes hands very easily. Cash is considered the most liquid asset there is because it can almost always be exchanged for any item which is up for sale. For example, someone selling a used car will gladly accept cash in exchange for it. Fine art on the other hand is not very liquid. If a person were to head to a used car dealership with a piece of fine art, the dealer would probably not accept the piece of art as payment because it would be difficult for the car dealer to turn around and sell it.
Market cap is a common shorthand for the phrase “market capitalization”. Market capitalization is a metric that originated in the stock market as a way to measure the total value of a publicly traded company. To calculate the market cap of a company, the value of one share of the company is multiplied by the total amount of shares in existence. For example, Marbles Inc. trades for $1.00 per share, 100,000 shares exist, Marbles Inc. is worth $100,000). This is thought to be a relatively accurate way to calculate the total value of a company.
When applied to a cryptoasset, the metric is intended to measure the total value of the cryptoasset and functions the same way. The circulating supply of a cryptoasset is multiplied by the value at which it is currently being traded for. Using an imaginary “Blockteq Coin” as an example, let’s say that there are 100,000 Blockteq coins in existence and they are currently being traded for one dollar. The market cap or total supposed value of Blockteq coin is $100,000.
Because the total circulating supply of cryptoassets varies significantly, a market cap can often be a better method than price to determine if a cryptoasset is over or undervalued. For example, if the price of two cryptoassets is 1 dollar, but the circulating supply of one is a million and the other is a billion, the cryptoasset with a billion tokens in circulation is valued significantly higher than that with one million.
A network is defined as a group of interconnected things. The Internet is a network of computers, all connected by IP. Plants and mushrooms are connected underground by networks of mycelium. Informal social networks are groups of people who know one another. Formal social networks take place on the Internet and connections are numbered by “friends” or “followers”. Blockchains and Cryptocurrencies are also networks and must be thought of as such to be fully understood.
Merriam-Webster defines oppression as unjust or cruel exercise of authority or power. Oppression exists as an interaction between two groups of people, the oppressors and the oppressed. This interaction often takes place between powerful systems and its participants in the form of dehumanization. Oppression is a cycle of violence that effects both the oppressor and the oppressed, and until the oppressed are able to join forces and liberate themselves from the cycle, oppression will continue. Only the oppressed can end the cycle of oppression, not the oppressors.