After a nail-biting opener of the season yesterday, the IPL stage is all set, and cricket fans are pumped up to watch the rest of the league. The Indian Premier League is the most celebrated in India and ranks 6th among all the world’s sports leagues.
Cricket is a sport that does a better job of bringing all Indians together than any religion in the world. According to reports, the opening week of the IPL between Mumbai Indians and Chennai Super Kings was watched by around 269 million viewers last season despite the pandemic. And it would only be surprising if the numbers don’t multiply this season.
While the league offers us so much entertainment, we thought it would be more interesting if we used this article to explain crypto in the language of cricket.
Here is a list of terms used in the crypto world, explained by a cricket fan.
Bitcoin is like the first over.
Like the first over in a cricket match which sets the tone for the exciting game ahead, Bitcoin is the first cryptocurrency in the world. It was introduced in 2008 in a whitepaper published under the pseudonym, Satoshi Nakamoto.
It initially started as dot balls as it was valued at $1 in its initial days. But a decade later, it is currently hitting sixers in the crypto market at a valuation of over $1 Trillion.
Just as there are several overs in a match, many other cryptocurrencies followed after the introduction of Bitcoin. They are collectively known as altcoins, and over 5000 of them are in circulation.
Crypto Exchange is similar to the stadium.
A cryptocurrency exchange is very similar to a cricket stadium. Like how the stadium or the field acts as a platform for everything that happens during the match, a cryptocurrency exchange operates as a medium on which you can buy/sell cryptocurrencies.
Cryptocurrency exchanges facilitate retail investors to invest in Bitcoin and other currencies listed on their platform. They operate 24*7 throughout the year.
Along with others, CoinSwitch Kuber is one of the largest cryptocurrency exchanges in India. It allows you to invest in crypto with a minimum investment limit of ₹100.
Miners are the umpires of crypto.
Crypto mining involves logging and maintaining the public trust-less ledger or Blockchain. Miners essentially keep the crypto users in check, like how the umpire keeps the team on the field in check. In Bitcoin, miners are required to solve a complex mathematical problem to find a block. After seeing the block, they add it to the transaction ledger and are rewarded with Bitcoins.
Sometimes a group of miners called a mining pool work together to find the block of transactions. It is similar to how two or more umpires of a test match work together to keep the game in order.
Unmined currency and un-auctioned players
More often than not, cryptocurrencies have a limited supply. Every time a miner mines a block of transactions, he gets rewarded with the respective cryptocurrency. Such currency is said to have come into circulation. The remaining supply of the currency which is yet to be mined is called unmined currency.
We can understand this concept with an analogy of auctioning cricketers for IPL. A group of players are put to auction. The ones chosen by the sponsors are like mined currency, and the ones yet to be selected are unmined currency.
The volatility of crypto is like a googly spin.
Cryptocurrency is an asset class known for its volatility. Volatility means the change in the price of an asset from its average price. When a bowler delivers a googly, it is almost undetectable how the ball will spin. Similarly, it is practically impossible to predict the highs and lows of a cryptocurrency.
However, it is well known that the higher the risk in an investment, the higher the reward. So if you are someone who wouldn’t mind taking some risk in return for huge returns, then cryptocurrency could be the bat that helps you win the investing game.
The transaction is everything from bowling to runs
A transaction is like a bowling delivery where the bowler bowls the ball and the batsman hits the ball and scores a run. It is the process of sending and receiving cryptocurrency from one address to another. Crypto transactions may contain several inputs and outputs.
Setting boundaries with Limit orders
Like how boundaries are set in a cricket game, you can set your own boundaries while investing in crypto with the limit order option.
When a ball is delivered, and the batsman decides the hit within the boundary, he is playing safe. When he decides to take a risk and go beyond the perimeter, he might win a big score like 6 or 4, or it could end in a wicket.
Likewise, Limit orders act as a boundary and allow you to place orders for a crypto-only to a certain extent, beyond which the risk could be much higher.
Hot Wallets are like your cricket streaming platform.
It is the kind of wallet that resides inside a digital device with an internet connection like laptops, smartphones etc. You can think of it as the digital platforms such as Disney+Hotstar that stream the matches live so that you can watch it online.
Hot wallets are generally less expensive the streaming services and are provided by your crypto exchange.
Storing crypto in Cold Wallet is similar to watching cricket inside the stadium.
A cold wallet is like a seat at the stadium, where you have to pay a high price to buy the ticket. Still, you get the guaranteed entertainment of watching the match physically without any internet. It is storing private crypto keys in hard storage devices such as hard drives, USB etc. It is much safer as it ensures that the crypto cannot be stolen or hacked through the internet.
Institutional Investors are similar to IPL Sponsors
They are like the sponsors for any league like the IPL, T20 etc., who invest big money into the sport with the expectation of better returns at the end of the league.
Institutional investors are generally big corporates who buy cryptocurrencies using billions of dollars from their cash reserve. They invest in crypto anticipating high returns in future and as a hedge against inflation.
Crypto and cricket may be two completely different walks of life, but using one’s analogy to understand the other may help you better grasp the topic.
However, parallels in the world of crypto need not be limited to cricket alone. If you have any exciting analogies that can explain crypto easily, please share them in the comments.
Also, if you found this article useful and want to share it with your friends, please feel free 🙂
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. We ask you to do your own research before investing.
Disclaimer :The content of this article is for informative purposes only. It is not intended as a substitute for investment/ financial advice. If You decide to act upon this information, You shall do it at your own risk. While such video/ article has been verified, it depends on third-party sources too, and CoinSwitch Kuber does not guarantee that there are no mistakes or errors nor does CoinSwitch Kuber represents the views presented in such article to be it’s own..
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