Cryptocurrency, console.log(), Hedonic Adaptation
Cryptocurrency, console.log(), Hedonic Adaptation
3.10 | “The way I see it, if you want the rainbow, you gotta put up with the rain." - Dolly Parton
News and Numbers
Markets this Week:
S&P 500 is up 2.53%.
NASDAQ 100 is up 3.6%.
Bitcoin-USD is down 1%.
Ethereum-USD is up 3%.
Headlines from this Week:
The Bank of Canada raises policy rate 25 basis points to 5% and continues quantitative tightening.
Bank of America will reimburse customers more than $100M and pay $150M in fines for charging unnecessary fees, opening fake accounts, and withholding rewards.
Finance
By Vlad Estoup, B.Comm. (Finance); working in Ethereum cybersecurity
Cryptocurrency: Rethinking Banking with Security, Earning Potential and Reduced Risk
Ever since the invention of the Internet, the world has seen a series of disruptive technologies emerge, forever altering how we communicate, learn, work, and transact. Most recently, the world of finance is seeing a fundamental shift through the advent of cryptocurrency. The world is gradually discovering that cryptocurrencies could provide similar, and in some cases even superior, benefits to the traditional fractional banking system while mitigating many of its risks.
Crypto Benefits Mirror Fractional Banking – And Then Some
Like traditional banking, cryptocurrency offers security for your funds. Bitcoin, the first and most well-known cryptocurrency, uses blockchain technology, a public, immutable ledger that tracks all transactions transparently and securely. It ensures that transactions cannot be altered or counterfeited, offering security not through physical vaults and complex procedures but cryptographic algorithms.
In addition to this security, cryptocurrencies can allow users to earn interest on their holdings – a concept familiar to any savings account holder. However, instead of earning interest through fractional reserve banking methods, crypto holders can earn interest via staking. Staking involves actively participating in transaction validation on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn staking rewards, a system that can potentially provide higher yields than traditional interest-bearing accounts.
Moreover, cryptocurrencies significantly cut down on transfer fees and time, particularly for international transactions. In the traditional banking system, international transfers can take days to complete and come with significant transaction fees. Crypto transactions, however, can be completed in minutes at a fraction of the cost, regardless of the geographical location of the sender and receiver. This feature significantly increases the efficiency and affordability of global remittances.
Mitigating Traditional Banking Risks
Beyond mimicking and enhancing the advantages of traditional banking, cryptocurrencies also help mitigate some inherent risks associated with the fractional reserve banking system. One of these risks is bank runs, which occur when a large number of customers withdraw their money from a bank because they fear the bank may cease to function in the near future.
In a fractional reserve system, banks only hold a small percentage of their depositors' money and lend the rest out. If too many people demand their deposits at once, the bank could collapse. This scenario is virtually impossible with cryptocurrencies because they are not subject to the fractional reserve banking system. Users have full control and ownership of their digital assets, and their cryptocurrencies are not lent out unless they choose to lend them, such as in the case of decentralized finance (DeFi) lending platforms.
Additionally, cryptocurrencies aren't subject to the same political and economic instability risks that traditional currencies face. They are not tied to a specific country's economy, and therefore, they aren't vulnerable to localized recessions, hyperinflation, or governmental instability.
However, it's crucial to note that cryptocurrencies come with their own set of risks, such as volatility, regulatory ambiguity, and technological vulnerabilities. Understanding these risks is essential for anyone looking to venture into the cryptocurrency realm.
As with any new technology, there are still issues to work out and improvements to be made. Yet, there's no denying the potential cryptocurrencies hold in providing a secure, profitable, and risk-mitigated alternative to traditional banking. They represent a forward-thinking option that could well reshape the global financial landscape in the years to come. The benefits of cryptocurrencies are increasingly causing both individuals and institutions to look beyond traditional banking, exploring the brave new world of digital assets.
This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies.
Sci-Tech
By Keyann; Software Engineer in Web3
The Power of console.log() for programming
When it comes to debugging and learning code, developers often overlook a simple yet powerful tool at their disposal: console.log(). This function, available in various programming languages, can significantly improve programming performance and overall understanding of code. In this article, we will explore why you should feel comfortable using console.log() and how it can enhance your programming journey.
Immediate Feedback:
Console.log() provides instant insights into code execution. By strategically placing this function within your code, you can print out specific values, variables, or messages to the console. This real-time feedback helps visualize the flow of data and quickly identify bugs or logic errors. It acts as a window into your code's internal workings, accelerating the debugging process.
Incremental Learning:
Learning programming involves trial and error. Console.log() allows for incremental learning and troubleshooting. By inserting console.log() statements at key points in your code, you can trace variable values at different stages of execution. This helps validate assumptions, identify unexpected behaviors, and pinpoint areas that require improvement. Observing the output step by step enhances your understanding of code behavior, leading to more efficient programming.
Understanding Complex Systems:
Console.log() is not limited to printing simple variables; it can handle complex objects and data structures as well. When dealing with intricate systems, such as large-scale applications or nested data, console.log() becomes invaluable. By examining the contents of nested objects, arrays, or JSON responses, you can understand the relationships between different components and optimize your code accordingly.
Diagnosing Performance Issues:
Efficient code requires optimal performance. Console.log() can help diagnose performance bottlenecks by measuring execution times. By timestamping key sections of your code and comparing time differences in the console, you can identify areas that require optimization. This allows you to focus on critical sections, resulting in improved overall performance.
Collaboration and Debugging:
Programming often involves collaboration. Console.log() facilitates collaboration and debugging in such scenarios. By strategically placing console.log() statements, you can share insights and communicate crucial information with team members. It simplifies understanding code written by others, aiding in faster bug resolution and fostering efficient teamwork.
Paradigm Shift
By Roman Kuittinen-Dhaoui, BBA, CPHR Candidate; working in Human Resources
Hedonic Adaptation
Gasoline in Vancouver, Canada, has been hovering around $1.90 per litre for the past few months. Just a couple years ago, gas used to cost around $1.50/L… In economic terms, gas is a relatively inelastic product (meaning changes in prices have little influence on demand). This made me think about how quickly we adapt to positive and negative circumstances as humans.
The hedonic treadmill, also known as hedonic adaptation, is a concept in psychology and economics that suggests that humans have a tendency to return to a relatively stable level of happiness or subjective well-being, despite experiencing changes in circumstances or life events.
According to the theory, when positive events or circumstances occur in a person's life, such as getting a promotion, buying a new car, or achieving a personal goal, there is often an initial increase in happiness. However, over time, individuals adapt to these changes, and the initial boost in happiness tends to fade. Similarly, when negative events or circumstances occur, such as losing a job or going through a breakup, there is typically a decrease in happiness. However, people tend to adapt to these negative changes as well, and their happiness levels gradually return to their previous baseline.
The term "hedonic treadmill" implies that individuals are constantly striving for happiness, but despite their efforts, they often find themselves in a continuous cycle of adaptation, where the pursuit of happiness becomes an ongoing process. This means that no matter how much individuals achieve or acquire, they tend to revert to their baseline level of happiness.
The hedonic treadmill suggests that long-term happiness is not solely dependent on external circumstances or material possessions, but rather on individual perceptions, mindset, and the ability to adapt to changing circumstances. It also implies that the pursuit of happiness through material possessions or external achievements may be ultimately futile in sustaining long-term well-being.
It's important to note that while the hedonic treadmill theory proposes a tendency for adaptation to both positive and negative changes, it doesn't mean that people cannot experience long-term changes in happiness. Significant life events, personal growth, and intentional efforts can lead to lasting increases in subjective well-being, but the theory suggests that the initial impact of such changes tends to diminish over time.
(Head)Space
Learning new languages.
Learning new languages as we age can be perceived as a more difficult endeavour, a phenomenon that is rooted in several factors including cognitive development, motivation, learning strategies, and age-related biological changes.
The young brain exhibits impressive plasticity, allowing children to absorb new information, including language, at a rapid pace. However, as we age, this cognitive flexibility reduces, resulting in slower learning processes. This decrease in neuroplasticity is a key reason why older individuals may find language acquisition more challenging than their younger counterparts.
Simultaneously, older learners often grapple with different motivational factors and learning opportunities. Unlike young learners who often study languages in an immersive school environment, adults juggle various responsibilities limiting their practice time. They also employ more analytical strategies focusing on grammatical rules, which, while useful for understanding language structure, may not be as effective for achieving fluency as the more naturalistic, immersion-based methods used by children.
Lastly, biological changes related to aging, such as a decrease in hearing acuity and memory retention, can affect language learning. Older individuals might find it harder to distinguish foreign sounds and remember new vocabulary or grammatical rules. Despite these factors making language learning appear more challenging as we age, it is not an insurmountable task and with the right approach and dedication, older learners can effectively acquire new languages.
Company of the Week
Pacific Blue Cross
Pacific Blue Cross is a Health Benefits Society and British Columbia’s number one health benefits provider. Based in Burnaby, BC, the not-for-profit organization provides health, dental, life, disability and travel coverage for 1 in 3 British Columbians through group benefits and individual plans. As part of its mission to improve health and well-being for British Columbians, Pacific Blue Cross proactively supports charitable organizations across the province working to improve health outcomes.
Written by: Vlad Estoup, Keyann Al-Kheder, and Roman Kuittinen-Dhaoui