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Cryptocurrency Implosion

Cryptocurrency ImplosionThe cryptocurrency world was rocked last week. The cryptocurrency market lost $500 Billion (Yes with a B). The popular cryptocurrency Terra Luna lost 99% of its value, dragging down a so-called “stablecoin” with it. The “stablecoin” cryptocurrency TerraUSD, (UST) fell from a high of $118.00 (in April 2022), to $0.09 on Thursday (05/12/2022).

maintained by a complex mechanismTerraUSD is an algorithmic stablecoin developed by Terraform Labs out of Singapore. An algorithmic stablecoin means it does not have reserves (fiat currencies or other highly liquid assets). Instead, its value was supposed to be maintained by a complex mechanism. Its value comes from swapping TerraUSD coins with a free-floating cryptocurrency called Luna to control supply.

What is a stablecoin

The goal of a stablecoin is to offer investors a safe harbor to avoid the fluctuations in other cryptocurrencies like Bitcoin and Ether. They are supposed to hold a constant value, no matter market conditions. Recently, stablecoins have  been used in international trade and as a way to avoid capital controls, according to experts. The theory behind stablecoins is try to ensure they remain in parity (peg) with certain assets. The assets can be the U.S. dollar – with one token equaling $1, for example. However that did not work for TerraUSD (UST),

stablecoins try to remain in parity (peg) with assets like the U.S. dollarThe core theory to maintain its peg is as old as the dismal science. They create supply and demand. Whenever the price of UST falls below $1, traders are incentivized to “burn” their UST tokens—taking them out of circulation—in exchange for Luna. The lower supply of UST, in theory, increases the stablecoin’s price back to $1 and maintains the peg. UST was also partly collateralized by billions of dollars’ worth of bitcoin (not highly liquid).

The “algorithmic stablecoin” tanked the broader cryptocurrency market when it fell well below its theoretically fixed peg of 1 to 1 to the U.S. dollar. After losing its peg, UST traded as low as 13 cents on Friday. Luna, its sister cryptocurrency, became nearly worthless overnight after trading for $80 a week earlier. As investors saw the stablecoin dropping, they rushed to withdraw their money (an online bank run). Major crypto exchanges ultimately delisted both Luna and UST to protect consumers.

The collapse sent a tsunami thru the cryptocurrency marketsThe collapse sent a tsunami thru the cryptocurrency markets and spooked investors. Bank of America Research says it was the worst implosion since May 2021. It measures up to both the 2008 financial crisis and the dotcom crash in 2000. The entire cryptocurrency market now has a market capitalization of less than half of the $2.9 trillion it was worth in November 2021.

Bitcoin, which makes up around 44% of the crypto market, price dropped to a 90-day low of $26,350 per bitcoin. As UST fell BTC lost more than 56% from its November high of $68,990.90.

Coinbase logoCoinbase (COIN), the only major publicly traded cryptocurrency exchange, also fanned the fire. In midst of the cryptocurrency implosion, COIN warned customers that their cryptocurrency holdings could be at risk if Coinbase goes bankrupt. CEO Brian Armstrong said Coinbase issued the warning in order to comply with updated SEC guidance.

Ethereum (ETH), the second-largest cryptocurrency, dropped to a third from a November 2021 high of $4,812.09 to $1,748.30 during the UST meltdown.

Smaller cryptocurrencies were not immune to the cryptocurerncy implosion.

  • Monero (XMR) lost a third of its value during the implosion. It fell to a low of $119.30 from from a high of $457.15 set earlier in the week.
  • DogecoinDogecoin (DOGE) Elon Musk’s pet cryptocurrency fell from a high of $0.69 per coin to a low of $0.08 per coin. During the cryptocurrency meltdown It lost 88% of its value.
  • SHIBA INU (SHIB) fell to a low of $0.00001079/coin. It’s previous high set in May 2021 was $0.00008/coin.It lost nearly 93% of its record value.

So what happened?

crypto moves much more like a tech stockCryptocurrencies were once viewed as newest hedge against interest rates and inflation. However experience has proved they are far more correlated to overall markets than early adopters hoped. Crypto proponents tell us that cryptocurrencies are an uncorrelated assets. In other words, it should float freely, divorced from the rest of the market. But that is not true. Because crypto moves much more like a tech stock than it does an inflation hedge. When tech stocks tank, so do digital assets. Garrick Hileman research chief at Blockchain.com and visiting fellow at the London School of Economics said, “We see more overlap in ownership than we ever have, this kind of convergence between Wall Street and crypto.

Faulty cryptocurrency systems

The reason TerraUSD in particular went down so much is that the Terra blockchain network automatically shut down. Terraform Labs explained, the price of Luna tokens had dropped so low that it was unable to “prevent governance attacks.” That shutdown for a time prevented transactions in the algorithmic stablecoin. The company tweeted that the move was necessary to allow it “come up with a plan to reconstitute it.” Additionally, the company’s chat board posted a notice saying it had been “locked down so new people can’t come in and spread fear, uncertainty, doubt and misinformation.

Elon Musk flip flops on cryptocurrencies

Elon Musk flip flops on cryptocurrenciesThe cryptocurrency implosion follows a recent crash brought on by social media influencers. Elon Musk and Tesla made a U-turn on accepting Bitcoin as payment for its products.

Telsa bought $1.5b of Bitcoin shares, which sent the market price of both the crypto and TSLA soaring. The decision by Tesla to not accept cryptocurrency was seen by some as a ding on the credibility of cryptocurrency to compete against physical currencies. Another problem is Elon Musk’s support of Dogecoin. Dogecoin is so unstable it was off 88% from its high during the cryptocurrency implosion.

China outlaws cryptocurrency

China outlaws cryptocurrencyChina continues clamping down on non-Chinese cryptocurrencies. Recently the government blocked initial coin offerings, and warned against speculative trading. Additionally, China ordered Bitcoin mining in its Sichuan province to shut down completely and told banks to stop supporting crypto transactions, in a latest wave of restrictions on cryptos.

Additionally the country’s central bank, People’s Bank of China, has effectively banned digital coins after announcing all transactions of cryptocurrencies are illegal. This forced Chinese crypto miners to move to other jurisdictions that were more miner-friendly driving up coin costs.

rb-
As we have seen a bad-timing and a number of missteps laid on top of a tumbling stock markets and war in the Ukraine caused many users to lose faith in UST and make an old fashioned bank-run on the cybercurrecny.

The Federal Reserve warned that stablecoins are vulnerable to investor runs because they are backed by assets that can lose value or become illiquid in times of market stress. A run on the stablecoin could therefore spill over into the traditional financial system by creating stress on these underlying assets, it said and we saw.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

World Password Day Tips and Tricks

World Password Day Tips and TricksWorld Password Day is May 5th. It’s the perfect time to educate yourself on best practices to build better online behaviors around password use. World Password Day is meant to remind everyone about the importance of protecting themselves through strong passwords.

Under lock and key

ProofPoint logoCreating strong passwords offers greater security for minimal effort. Proofpoint uses the example of a padlock. You can buy a small padlock for less than a dollar—but you shouldn’t count on it to protect anything of value. A thief could probably pick a cheap lock without much effort, or simply break it. And yet, many people use similarly flimsy passwords to “lock-up” their most valuable assets, including money and confidential information.

Fortunately, everyone can learn how to make and manage stronger passwords. It’s an easy way to strengthen security both at work and at home.

What Makes a Password ‘Strong’?

What Makes a Password ‘Strong’?Let’s say you need to create a new password that’s at least 12 characters long, and includes numerals, symbols, and upper- and lowercase letters. You think of a word you can remember, capitalize the first letter, add a digit, and end with an exclamation point. The result: Applejacks1!

Unfortunately, hackers have sophisticated password-breaking tools that can easily defeat passwords based on dictionary words (like “applejacks”) and common patterns, such as capitalizing the first letter.

Increasing a password’s complexity, randomness, and length can make it more resistant to hackers’ tools. For example, an eight-character password could be guessed by an attacker in less than a day, but a 12-character password would take two weeks. A 20-character password would take 21 centuries.

Uniqueness Matters

Many people reuse passwords across multiple accounts, and attackers take advantage of this risky behavior. If an attacker obtains one password—even a strong one—they can often use it to access other valuable accounts.
Here’s a real-life example: Ten years ago, Becky joined an online gardening forum. She also created an online payment account and used the same password. She soon forgot about the gardening forum, but someone accessed her payments account years later and stole a large sum of money.

Becky didn’t realize the gardening forum had been hacked, and that users’ login credentials had been leaked online. An attacker probably tried reusing Becky’s leaked password on popular sites—and eventually got lucky.

Guarding Your Passwords

  1. Don’t write them down – Many make the mistake of writing passwords on post-it notes and leaving them in plain sight. Even if you hide your password, someone could still find it. Similarly, don’t store your login information in a file on your computer, even if you encrypt that file.
  2. Don’t share passwords – You can’t be sure someone else will keep your credentials safe. At work, you could be held responsible for anything that happens when someone is logged in as you.
  3. Don’t save login details in your browser – Some browsers store this information in unsafe ways, and another person could access your accounts if they get your device.

Password tips for family and friends

Consider sharing what you’ve learned about passwords and ask family and friends about their cybersecurity knowledge or experiences.

  1. Never reuse passwords – Create a unique, strong password for each account or device. This way, a single hacked account doesn’t endanger other accounts.

Create complex, long passwords

 

2. Create complex, long passwords – Passwords based on dictionary words, pets’ names, or other personal information can be guessed by attackers.

3. Use a password manager – These tools can securely store and manage your passwords and generate strong new passwords. Some can also alert you if a password may have been compromised.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Eight Ways to Celebrate Earth Day 2022

If everyone had a reusable water bottle, then this number would decrease greatly. If you don’t already own one, then go out and buy a bottle that you can take with you everywhere you go.Earth Day is Friday, April 22nd, 2022. Earth Day marks the anniversary of the birth of the modern environmental movement in 1970. This year’s Earth Day theme is “Invest In Our Planet.” Here are 8 investments you can make at home today. We all need a healthy Earth to support our jobs, livelihoods, health & survival, and happiness. A healthy planet is not an option — it is a necessity.

Use A Reusable Coffee Cup

Saving five cups and lids over the course of a week amounts to nearly 300 during the year. Multiply that times the number of people who work just in your office, and it quickly adds up to less waste for Earth Day 2023.

Plant a Tree This Earth Day

Trees and forests are extremely important for providing oxygen, homes, and resources to animals, which includes us. Trees can help with soil erosion and contribute to dealing with carbon emissions, Deforestation contributes to greenhouse gases, with an estimated 15% of all greenhouse gas emissions due to the cutting down of trees.

Plant a Tree This Earth Day

Trees not only cool things down – they can help decrease a city’s temperature by up to 10 degrees. They also clean the air and give off more oxygen. Trees have proven to increase your property value by 15%.

This Earth Day, if you want to help make your area a bit greener. Help reduce deforestation and climate change. Plant a tree or even a forest! You can buy saplings from garden centers or the Spruce has a way to get free trees for your Earth day celebration.

Give Up Chewing Gum

Give Up Chewing GumYou might think that chewing gum is environmentally friendly. However, it is actually made from synthetic rubber, which is plastic. Around 100,000 tons of this plastic is thrown away every year, and a lot of it ends up on the street and on the bottom of your shoes. Next time you want minty-fresh breath, just brush your teeth rather than chewing on a piece of plastic.

Shop a Local Farmers Market on Earth Day

Buy local. Buying local produce reduces shipping distances from food sourced overseas. Buying local supports local businesses and communities. Check out a local farm or local restaurant this Earth day

Shop a Local Farmers Market on Earth DayVisit a local farmers’ market. Not only will you be supporting growers in your area, but buying local helps save transportation energy and fossil fuels. That’s because food in the grocery stores travels an average of 1,500 miles to get to you. All that shipping can cause pollution plus an increase in fossil fuel consumption and carbon emissions.

Farmers markets also tend to use a lot less, or even no plastic packaging compared to supermarkets, which helps reduce waste. Finally, the products are grown or made locally so transport distances are very short and CO2 emissions are low. Community Supporter Agriculture, or CSA, is also a great way to get local, seasonable produce delivered to your door. Sign up for one in your area.

Use a Refillable Water Bottle

Fish eat plasric - we eat fishAmericans buy 1 million plastic bottles every minute. The water extraction for these water bottles is harmful to wildlife and whole communities. There’s no reason to use it.  In 2016, over 480 billion plastic bottles were sold, which is over 60 for every person. It takes over 1.5 million barrels of oil to manufacture all of those bottles each year. There are still over two million tons of water bottles that have ended up in U.S. landfills.

If everyone had a reusable water bottle, then this number would decrease greatly. If you don’t already own one, then go out and buy a bottle that you can take with you everywhere you go. Buy a reusable bottle, preferably one that has a  water filter attached to it, so you’ll be getting fresh water every time.

Stop Using Plastic Straws on Earth Day

Stop Using Plastic StrawsPlastic straws contribute greatly to the plastic waste in our oceans. The next time you go to a bar or restaurant, make sure to say no to straws and even encourage them to stop using straws completely. If you have to use one, then buy an environmentally friendly one that is reusable. You can buy bamboo, metal, and glass straws online that you can wash and use rather than always buying plastic ones. Swap plastic straws for reusable straws made from silicone, bamboo, or metal.

Switch to eBills and Online Invoices

Switch Your bills to eBills and online invoicesRather than being sent your monthly bills by post, switch to online statements to reduce paper waste. It’s really easy to do and can save millions of trees every single year. With online bills, you are sent an email when your bills are available online to view. Decreasing the demand for paper will hopefully decrease the rate of deforestation.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

6 Ways to Exercise While Working From Home

6 Ways to Exercise While Working From HomeFollowers of the Bach seat have known for a while that your desk is killing you. Here are 6 ways to exercise while working from home. One of the worst parts about sitting at a desk for eight or more hours a day is the fluid that accumulates in the lower legs. This can make your legs swell. Long hours of sitting increases the risk of atherosclerosis (plaque buildup in the arteries) as well as diabetes, obesity, and depression. One study even found a direct relationship between time spent sitting and risk of early mortality of any cause.

Heart healthThere is exercise equipment that can encourage blood flow and prevent fluid buildup throughout the day while you are working from home. Studies have found that periodic five minute sessions of movement can do good things for your health. Short sessions of exercise can lift your mood, restore energy levels without losing focus, and are more beneficial than taking a single long walk.

Working out intermittently throughout the day can also keep your head in the game and your mind sharp. Many users report huge increases in work-productivity after adding an exercise routine to their workplace. This post looks at some of the equipment you can use to feel better, lose weight and maybe even save your life while working from home.

Resistance bands

Resistance BandsResistance bands are a must-have part of you work from home office workout. The oversized rubber bands are great to use for any workout, any time  throughout the work day. The bands provide enough challenges where you can build your strength. They help you strengthen your natural body movement patterns. Resistance bands can be used with popular workout programs such as yoga and Pilates, meaning they are great for both the office and home. The bands help with stretching, strength training, or injury recovery. The best stretch bands are heavy duty, inexpensive and can be made of eco-friendly latex.

Under-desk bike pedal exercisers

Under-desk bike pedal exercisers are good for a work from home space. They allow you to get some cardio activity done in a quiet and discreet manner while you are working. Desk bikes can create higher strain and muscle activation on higher resistance settings. They enable those seeking an actual workout while at their desk rather than a tool to simply stay active and moving at work. It is a time saver in that it may allow you to cut down on your workout time outside of the office. Their low profile and wide base is great for many different types of office spaces.

Under-desk elliptical exercisers

Under-desk elliptical exercisersUnder-desk elliptical exercisers have make forward/back motion as opposed to the circular motion of cycles. Elliptical’s let you to exercise throughout the day without really thinking about it. Desk elliptical s can be lower impact on your legs and joints than desk bikes. They allow you to keep your posture correct and is a discreet machine to slip under your desk so you can continue to work your way up to a greater level of fitness while sitting thru another Zoom meeting.

Hybrid desks

Standing deskStanding desks allow you to be in an upright position, strengthening your bones, cartilage, tendons and ligaments by straining them — in a good way. Being upright also encourages better posture, pumps more blood to the heart, increases airflow to the lungs, and burns more calories than you would sitting down. Sit/stand desks can also help with arthritis, as the regular movement prevents joints from getting stiff and can minimize joint pain overall. This is an effective way to add in some quality exercise throughout the day while multi-tasking. It increases you energy and reduces joint pain so you can stay in shape and make long-term changes to your healthy lifestyle.

Hybrid desks integrate work out equipment with a standing desk. They are typically more expensive than the previous items. But they tend to use less floor space in your work from home office by combining a desk with exercise equipment

Standing desk exercise bike

Standing Desk Exercise BikeCycling while working, even if you’re hardly exerting yourself, will increase your blood flow, keep your legs limber, and even burn some calories all while maintaining your productivity. A standing desk exercise bike can be used both in formal or informal offices. Their versatility is impressive. Utilizing a desk bike offers a number of benefits including, but not limited to:

• Strengthening muscles
• Increases in metabolism
• Burning of fat/Weight loss
• Sleep pattern improvement
• Mental health benefits

Desk bikeA standing desk exercise bike is a good answer for people who are interested in owning both a desk bike and a standing desk, while also being a versatile tool for all sorts of other work and play applications! Standing desk exercise bikes pairs a traditional exercise bike with an effective work space, enabling you to sit atop what feels like an actual bicycle while working from home.

You can use the the adjustable-height desktop as a standing desk, or remove the desktop and use the machine solely as an exercise bike. This is a strong option for those who are serious about both their work from home productivity and personal fitness.

Standing desk recumbent exercise bike

The standing desk recumbent exercise bike combines a workspace and a recumbent exercise bike. The seat of a recumbent exercise bike puts the body in a more natural position. It is typically easier on your joints and back during exercise. The body position is like sitting on a piece of furniture with adequate seat coverage and a back rest. The seat is typically larger, provide more lumbar back support, and have pedals positioned out in front of the body, making it a much more comfortable to workout from home than an upright bike desk.

A standing desk recumbent exercise bike comes with an adjustable desktop to hold your laptop, tablet or notebook. You can burn calories while working, checking emails, or attending a virtual meeting. And you can also use the device as a standing desk without cycling.

Treadmill desk

Steelcase WalkstationI introduced the Steelcase Walkstation to Bach Seat followers in 2009. This is the most expensive way to exercise while working form home. A treadmill desk is large and bulky, and not very discreet. On the other hand a treadmill desk can multi-task and serve as a standing desk. It also saves you time where you get your steps in throughout the day while you are working, without going to the gym. This device keeps you from living a sedentary life while you are working from home.

How to choose the best WFH exercise equipment

Choosing the best exercise equipment for work from home can be tough. There are a lot of options out there at many different price points. Ask your self these questions:

  1. How well the exercise equipment fit to your body and its needs?
  2. Does it have enough weight capacity?
  3. If you have physical limitations or problems, such as back problems, can it be adjusted so that you’re comfortable and safe while working out?
  4. How to choose the best WFH exercise equipmentWhat kind of workout you want. Do you want a heavy-duty, full-body, high cardio-burning session? Do you you just keep moving while answering emails?
  5. Do you have the real estate in your WFH office for the equipment?
  6. Finally, consider the cost. The exercise equipment we looked at in this post come in a wide range of prices. Even if you’re on a budget, you can still find exercise equipment that help you feel fitter.

 

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

FAATMAN Stocks Keeps Getting Fatter

FAATMAN Keeps Getting FatterThanks largely to the COVID-19 pandemic that pushed even more activity online the FAATMAN companies have a collective market cap of $8.3 trillion. During that time the billionaire CEO’s of these companies became ever wealthier The FAATMAN companies are tech titans Facebook (FB), Alphabet (GOOG), Amazon (AMZN), Tesla (TSLA), Microsoft (MSFT), Apple (AAPL), and Netflix (NFLX). The FAATMAN companies generate ridiculous amounts of revenue rate per minute.

CompanyRevenue Per Minute
Amazon$ 955,517
Apple$ 848,090
Alphabet (Google)$ 433,014
Microsoft$ 327,823
Facebook$ 213,628
Tesla$ 81,766
Netflix$ 50,566
FAATMAN Revenue Per Minute hat tip to www.visualcapitalist.com

FAATMAN companies

Facebook‘s most recent quarter was a company best, generating almost $214,000 per minute or $27 billion in revenue. It hosted an average of 2.8 billion monthly-active-users on it’s platform. Over 1 of every 3 humans on Earth can be manipulated by Facebook.

Google logoAlphabet, the parent company of Google has the third largest market cap, made over $433,000 per minute. That means that Google can a  Rolls Royce Phantom is less that 2 minutes. They finished 2020 with $182 billion in revenues. Furthermore, almost 4 billion Google searches occur every single day, making it the most popular website in the world. With the revenue of  $433,000 per minute Google can purchase a Rolls Royce Phantom is less that 2 minutes.

Amazon most revenue per minute

Amazon made nearly 1 million dollars per minute. Most of this was made in the U.S. They also do very well around the world. For example, in 2020 they generated $29 billion in Germany, and $20 billion in revenues in Japan.

At this income rate Amazon can pay to send 2 people per minute on a suborbital space trip on Jeff BezosBlue Origin New Shepard rocket ship. Seats to the edge of space typically cost $500,000.

Tesla logoTesla‘s almost $82,000 of revenue per minute is being driven by the growing Electric Vehicle (EV) market. The home of Tesla and SpaceX joined the S&P 500, and along the way has made Elon Musk the richest person in the world. This kind of revenue per minute means Tesla can buy nearly two Tesla Model 3’s per minute. How we know where all their sales are coming from.

Microsoft made $327,823 per minute, making it the second largest tech titan with a market cap of $1.75 trillion. Microsoft earned over $168 billion in 2021. Office products and cloud services accounted for close to $40 billion U.S. dollars. Server products and cloud services accounted for the largest share of this revenue, with around $52.6 billion. 

In one minute Microsoft makes enough to buy a typical U.S. home. Zillow says the typical home value in the United States is $325,677 and Microsoft makes $327,823 a minute.

Apple has the largest market cap

Apple logoApple is currently the most valuable company in the world with a market cap of around $2.6 trillion. In the first quarter of financial year 2022, Apple’s revenue reached $123.95 billion. Apple takes in over S848,000 per minute. Apple is no longer just the iPhone company. in Q1 2022 iPhone brought in $71.6 billion. They have diversified their income. In Q1 of 2021, Apple’s services segment of the business made $19.5 billion in revenue.Apple Wearable, Home and Accessories made $14.7 billion in revenue. Hardware (Mac and iPad) collectively made over 18.2 billion in 2022 Q1.

Netflix has benefited from the pandemic   The streaming giant made S50,566 per minute. They wrapped up 2020 203 million subscribers. Netflix is the worst performing FAATMAN member and still made $50,566 per minute,  while the average American family income  for FY 2021 is $79,900. Netflix brings in the average American household income in less than 2 minutes.

FAATMAN Outlook

To put these numbers into perspective, the FAATMAN companies make more than the GDP of the U.K., India and France combined.

These insane incomes fueled the billionaire space race. Where billionaires spent billions to be the first into space

While the current value may appear bloated, no one can quite rule out FAATMAN getting fatter.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.