Hello 2022! If you are truly ready to greet the new year there are a few terms you need to know to ensure you are moving with the times. The investing world is going through a 'tectonic' change and you need an all-new dictionary to keep up. EJ Biz brings you the did you know to must-know terms:
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Let's kick start with Web3! You may have seen a twitter twat between Musk and Dorsey and wondered what it was all about anyway! The definition of Web3 depends on who you ask...one set will tell you it is the leap towards utopian internet while the skeptics will call it yet another scam. Simply speaking The central idea behind the ‘third version’ of the internet is weaving the various blockchain technologies – cryptocurrency, NFTs, and so on – together to create a web that is less reliant on the five big technology companies. How it would work or will it work well only time will tell.
Talking of less reliance or decentralisation.. one has to put the spotlight on DAO or Decentralised Autonomous Organisation, this is a blockchain-based company with no centralised control. Bitcoin is generally considered to be the first fully functional DAO, as it has programmed rules, functions autonomously. So for DAOs, decision-making lies in the hands of all the blockchain-network holders. DAOs are being used for many purposes such as investment, charity, fundraising, borrowing, or buying NFTs, all without intermediaries. So you can have a better idea, for example, a DAO can accept donations from anyone around the world and the members can decide how to spend donations.
Now that we mentioned NFTs let's move to that ..from art to fashion to even the original source code for the internet..its all on sale as a Non Fungible token. In the simplest terms, NFTs transform digital works of art and other collectibles into one-of-a-kind, verifiable assets that are easy to trade on the blockchain. It has digital verification and is the latest boom in the crypto corner and dubbed crypto art.
From Elon Musk grooving to it to Wall street minting millions on it ... you could have not escaped the term SPAC in the headlines. SPAC stands for Special purpose acquisition companies and are also known as blank-check companies. These firms are the new popular way to list overseas with no actual operations. A few 'well known investors' will list a shell company with the purpose of just acquiring a company to then have it listed. It is like a blind bet in a card game where you place your bets based on the players involved.
H ...O ..D...L ...from Twitter trends to GIFs this term took social media by storm... it stands for 'Hold on for dear life' and became the go-to word for crypto backers and enthusiasts during the volatile ride of returns for digital tokens hoping to encourage others not to panic sell. This term actually originated from a typo. On a December morning in 2013, user GameKyuubi posted an entry titled “I AM HODLING” in a bitcoin forum. The misspelled “HODL” quickly circulated among the crypto community to become the rage it is today. Not only has “hodling” turned into one of the most popular cryptocurrency terms, it’s also served as a strategy for traders, where hodlers stay invested and refrain from trading when the asset price decreases.
