Category: Cryptocurrency

Bitcoin Death Spiral

The Bitcoin Death Spiral

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For a bitcoin transaction to be validated, it can take up to 10 minutes. This is because the network needs time for consensus and verification of certain blocks. However, this isn’t ideal if we want people using cryptocurrency as an actual payment method – there’s no way that customers would appreciate having their Starbucks taking longer just so they could pay with crypto! In order for cryptocurrencies like Bitcoin to survive in the long run, they need security but also speed since many are already being seen as valid forms of exchange regardless of price fluctuations.

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Liquidity Pool

Liquidity Pools Explained

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Basic liquidity pools, such as those used by Uniswap, use a constant product market maker algorithm that ensures the product of their supplied tokens is always the same. Furthermore, due to this algorithm they can provide liquidity regardless of trade size and ensure it will be there for future trades. This happens because no matter how much people want or don’t need in total; supply increases with demand which makes price increase automatically so users trust its stability while trading off-chain making them more likely to hold on token instead sell at lower prices than waiting hours/days until next refill opportunity occurs again (when possible).

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