One of the most boring stuff to do. But rewards the person who reads it.
In the blockchain, whitepapers generally help determine the value of a technology. Here, we’ll discuss how to read a whitepaper so that you can accurately determine the value within the network.
Having some math knowledge is necessary to understand the algorithms and technical concepts of a coin. To properly understand these concepts, you mostly need to learn calculus and linear algebra. If needed, you can advance your knowledge of differential equations and advanced calculus to get the most of these whitepapers. But, having knowledge in calculus and linear algebra will mostly help you to understand these concepts.
Microeconomics analyzes how households and firms make the decision in economics. To apply microeconomics to your analysis, you can look at technical features and how the economic system was designed. Even more, microeconomics can help you understand the algorithms that each platform utilizes. Moreover, you can look at their ecosystem to see how they’d fare in the long-run. Or, you can look at the blockchain ecosystem to determine where does the cryptocurrencies go and how the blockchain ecosystem would fare.
Macroeconomics works on the aggregate in an economy. Because global developments affect the value of cryptocurrencies, having some knowledge of macroeconomics is useful to determine where cryptocurrency prices are moving towards. Or, you can use macroeconomics to determine long-term value by analyzing moves from different parties and the blockchain ecosystem.
Blockchain is the first thing that should be known before investing in a cryptocurrency. These things include, how blockchain works, what blockchain is, the use cases, and having knowledge on popular platforms. After you have enough knowledge of these concepts, you can start investing by opening an account on a crypto exchange.
How do you read your whitepaper? Have you ever read a whitepaper? Share your thoughts in the comments section below.