Trust, Money, Women: what all of them have to do with crypto

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The crypto industry is built on one fundamental principle: trust. If you want to learn the ways that all of this affects our futures, we have to discuss it. Cryptocurrencies are something all of us should keep an eye on closely as this represents a new way to trade goods and money. In other words, it's about how wealth will be created and managed in the future.

And women cannot miss this transformation if our goal is to close the financial gender gap.

Back to trust. Trust is defined by the dictionary as "firm belief in someone or something's reliability, truth, ability, or strength". Under the law, a trust is an arrangement where a person (a trustee) holds assets in trust for the benefit of another person or persons (beneficiaries). Not much new here. 

Trust in our society is established by intermediaries. If you think about your bank for example, it's an intermediary that secures trust between people and companies in financial transactions (I'm not talking about a fiduciary trust, which by definition is something else entirely).

To establish trust, an intermediary must be reliable, transparent, and centralized, and here is where crypto comes in: Blockchain technology is at the foundation of crypto and trust is native to it.

In the blockchain, assets and information can be stored, moved, transmitted, exchanged, and managed without the involvement of intermediaries. It means the way our whole society is established might change, as more solutions can be designed without the need for an intermediary.

In a blockchain, trust is established by peers across a global ledger. Each peer hosts a copy of a block of data. A block is created every few minutes with all transactions from the previous minutes. 

This new block of information will be linked to the previous blocks, and this is the chain: to confirm one single transaction, you must validate it in every block in the chain. This is far safer and faster than what we're used to today. 

It is possible to imagine solutions without intermediaries in a wide range of industries. New fields and positions could replace many jobs, and in the coming years, we will definitely see this happening more quickly than it has in the past.

Female participation in disruptive technologies can mean social mobility, a smaller gender gap, and a future with less inequality on the one hand, but can also mean the opposite if we do not take part in it.

What I mean is that you should not just invest in crypto (although you can if you want), but you should learn about it, gain skills in technology, and realize there is no turning back to the analog world.

We must follow the money to create a society with gender equality and social justice. Men already know this pretty well, which is why 74% of crypto holders in the U.S. were male and 71% were white in 2021, according to this Gemini report.

Women are still stuck in unhappy, abusive relationships every day due to financial insecurity. We will probably see more generations still struggling with the same issues if we do not fight this right now.

Trust is power. Money is power. And power in the right hands can change the world. 

How to survive inflation

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How to survive inflation

The US Consumer Price Index (CPI) recorded 8.3% annual inflation in April, down from 8.5% in March. Housing, food, airline tickets, and new vehicles made up the majority of the CPI last month, according to the Bureau of Labor Statistics.

Americans today are experiencing the highest rate of inflation in the last 40 years, which means that for the first time in their lives, they are seeing a general increase in prices in the economy.

However, the reality of neighboring countries in recent decades is somewhat different.

In the last 40 years, Latin American economies have struggled with inflation. In 1996, in Mexico, the Indice de Precios y Cotizaciones (IPC) grew by 27.70%. It was even more dramatic in Brazil, where hyperinflation led to an increase in prices of 1,792.90% in 1989.

There is much we can learn from the experiences of neighboring countries during times of uncertainty, and it is crucial to organize finances in order not to break.

Step Down

While your finances may be in order, knowing your expenses in times of inflation will allow you to plan ahead. Knowing what a priority is and cutting small, non-essential expenses are crucial.

Consider paying cash instead of credit for mandatory expenses if there is a discount. The only time financing is a good option is when there is no interest, meaning that even if you pay monthly, the full price remains the same.

Do your research to find the best prices when buying groceries, and don't be tied to brands. Give preference to wholesale purchases because the prices are generally lower.

Finally, do everything you can to pay off debt that has a variable interest rate, meaning interest rates fluctuate based on a benchmark. A benchmark can be an inflation index, or the US interest rate set by the Federal Reserve.

What comes next?

Although inflation affects daily life and the economy, it is important to remember that this sticker shock was already expected. Because of the pandemic, the government released US$ 4.6 trillion in funds to guarantee income for the unemployed and financial relief for companies, which is one of the reasons for current inflation.

There are also a number of external factors contributing to current inflation, such as the war in Ukraine, Chinese lockdowns, and disruptions in global supply chains.

Banks in the United States are already predicting an economic recession, which occurs when the economy declines for several months. During these challenging times, don't let despair overtake you, and remember that this is just a phase that will soon end.

As someone who grew up in a country experiencing decades of inflation, I know that living a step below your dreams and potential is not easy or comfortable, but it's essential, so personal finances don't become even more fragile once this economic crisis is over.

Crypto for women: Ethereum, Ether and ETH explained

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Crypto for women: Ethereum, Ether and ETH explained

Finance and women have always seemed like such dissimilar worlds, and, sometimes, they still do. In the last few years, the internet has helped close the financial gender gap, and cryptocurrencies are helping more women enter the finance field. 

According to a Gemini report, women account for 26% of current crypto holders in the U.S., and they make up 53% of the "crypto curious" – people interested in getting into cryptocurrency soon. 

But before investing in crypto, we first need to understand how it works. In my last article, I discussed the main characteristics of bitcoin and the blockchain technology. Now, let's look at Ethereum. 

First, I'd like to explain the differences between Ethereum and Ether. Ethereum is a blockchain-based platform, or to put it in another way, it's a network. Just as the internet is a network of computers, Ethereum is also a network. 

Ethereum is best known for its cryptocurrency, Ether (ETH). Ether is the native token of Ethereum's network, and it's also the second largest cryptocurrency worldwide in terms of market capitalization. With ETH, you can send payments directly to another person without the need for an intermediary.

On March 14, 2022, one ETH was worth $2,547.70. 

But the Ethereum network is more than a blockchain platform. On Ethereum, software developers can build everything from decentralized lending platforms to social networks.

Decentralized System 

As a decentralized system, Ethereum is not under the control of any governing authority. It is completely autonomous.

Applications that are decentralized have the potential to entirely change the way companies deal with their audiences and make money by eliminating the need for intermediaries.

As such, in the Ethereum Blockchain customers do not need an intermediary to know where their product originated, while smart contracts can ensure safe and efficient trades for both parties.

In short, Ethereum is a distributed computing platform that uses an open-source Blockchain to allow developers to build and deploy decentralized applications.

Ether and Bitcoin

As you already know, Ethereum's network uses Ether as its token (crypto), which can be used to send money to and from users without the involvement of any banks or financial institutions.

Ethereum and Bitcoin are two entirely different projects. Bitcoin is a cryptocurrency and money transfer system supported by a distributed public technology known as Blockchain.

Ethereum has taken the technology behind Bitcoin and significantly enhanced it. It has its own coding language, internet browser and payment system. It also allows developers to create decentralized applications using the Ethereum Blockchain.

Smart Contracts

On the Ethereum blockchain, applications can be created using "smart contracts". Like traditional paper contracts, smart contracts specify the terms of an agreement between the parties. 

But unlike traditional contracts, smart contracts are automatically executed when terms are reached without participants needing to know who is on the other side and without requiring any kind of intermediary.

It was a computer scientist named Nick Szabo who made the first smart contract proposal in 1997, using the famous analogy to a vending machine. A vending machine has a cost for each drink, and once the coins are inserted, it will automatically run.

Like the vending machine, a smart contract can execute terms without a human intermediary.

There is so much more information I could share with you about Ethereum, such as how you can get it, the mining process, risks, Ethereum 2.0, and so on. Stay informed and up to date on crypto and investing for women in our upcoming articles. 

Questions about crypto and blockchain that you were too shy to ask

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I know we often postpone learning new concepts, so in this article I'd like to introduce you to an easy-to-understand way to two words you have probably heard in the past few months: blockchain and bitcoin.

We should first clarify that blockchains and crypto assets represent the convergence of technology and finance. This is not just finance, it is not just tech, it’s both worlds merged. 

A blockchain operates as a public record of financial transactions, or a database that stores information in a secure and transparent way.

In addition to recording the purchase and sale of cryptocurrencies like bitcoin, the blockchain can also be used for real estate registration, among many other uses. Regarding cryptocurrencies, blockchain allows the operation of a secure and transparent financial network.

Furthermore, it is a way to circulate bitcoin in a safe and transparent manner, ensuring trust and transparency between transactions. So, that's why blockchain was introduced along with Bitcoin in mid-2008.

In a blockchain, each transaction must be validated by another computer on the network, and this is one of the functions of the technology that ensures user security.

Bitcoin is a decentralized digital currency that does not require third parties to function. It means you do not need a bank or financial institution to move your money, but perhaps bitcoin's most prominent characteristic is its independence from governments. 

No government, no central bank, no country controls bitcoin trading or issuance, and that is why it is so disruptive because with bitcoin (and other crypto), we have a real alternative to geopolitical monetary control. We are witnessing something unprecedented in modern history.

Nobody knows who invented all of this. In October 2008 (at the height of the subprime crisis), a person using the pseudonym of Satoshi Nakamoto published the Bitcoin White Paper, explaining how the system would work.

There are numerous theories about who Satoshi is, including the popular theory that blockchain and bitcoin were created by a team of developers, not a single person.

When it comes to new and disruptive technologies, we are all learning, and I hope this article clarifies some  concepts behind bitcoin, blockchain, and crypto in general. 

The next article in this series will explore the world of cryptocurrencies and discover the most popular digital assets affecting our everyday lives, as well as how countries deal with the threat of a decentralized monetary system.