Albaron Ventures Blog

How Will Increasing Debt Levels Impact Bitcoin’s Price?

Debt is often compared to being a double-edged sword. Countries can borrow money to stimulate growth and large internal projects, affording their citizens a better economy to accumulate wealth and a higher quality of living. However, this debt comes with interest, and many countries end up in a vicious cycle of borrowing or printing more money to pay off their debts.  The more money a country borrows, the more it has to pay back in the future. This means future generations will end up having to pay off the interest of debt borrowed in the past, reducing their ability to [...]

By |2020-01-23T17:55:16-08:00January 24th, 2020|

Quantum Money and Bitcoin

Image source Deemed as one of the biggest potential technological revolutions of recent history, quantum computing also poses security risks for the cryptocurrency space. Quantum-computing is able to harness quantum mechanics to reach data processing levels otherwise impossible with traditional computing. In 2015, Google announced that its quantum prototype was 100 million times faster than any other computer in their laboratory, and this was nearly five years ago. In that short time span, we’ve seen a massive explosion in popularity and quantity of cryptocurrencies. It’s been estimated that in order to hack a single a 64-digit hexadecimal private key, it [...]

By |2019-12-09T17:49:19-08:00December 13th, 2019|

Synthetix Platform

Introduction Traditional financial services are rooted in the usage of centralized intermediaries (banks, custodians, clearinghouses, exchanges, money market, lending) that offer these services to their clients.  Their “rent-seeking” profitability mechanism creates a long-term fundamental misalignment between their incentives and the incentives of their clients. In addition, their centralized nature makes them more easily corruptible, and more prone to security attacks.  As with the general trends from 1) products to services; and 2) closed source to open source, a new category of open source services is being created, for the financial services space.   Also known as Decentralized Finance (DeFi), these open [...]

By |2019-12-11T14:00:52-08:00December 8th, 2019|

Exploring the Impossibility of Full Decentralization

In our quest to escape from existing corrupt centralized systems, we may believe that it's possible to achieve complete decentralization. However, recent academic research shows that this is unfeasible -- at least sustainably. For example, Bitcoin’s Proof-of-Work (PoW) mechanism relies on many different nodes to “mine,” or verify and facilitate transactions. These miners are rewarded a portion of transaction fees and a shot at winning the Bitcoin block reward, which is currently 12.5 bitcoins or about $115,000– a not insignificant prize dished out about 144 times per day.  This has incentivized the creation of “mining pools,” or a collection of nodes that [...]

By |2019-11-16T13:19:41-08:00November 14th, 2019|