“To me, it’s an insurance against instability in the mainstream financial industry,” said Caitlin Long, one of the most experienced Wall Street professionals to defect to the crypto space.“I think about, ‘What’s the probability that the mainstream financial industry goes poof?'” she continued, adding:“That’s how I think about the asset allocation to bitcoin in my own portfolio. Specifically, what I mean by that is it’s the settlement system risk that’s the issue. I’m not talking about price risk. Obviously, bitcoin’s more volatile than most traditional financial assets, but bitcoin is less volatile from a systemic perspective than I think the traditional financial industry is.”The financial system will not go 'poof' it will 'burp'. If we survived he Nixon Shock we will survive a New fed contract much better. For one thing, we have better tech, like bitcoin as a predicting hedge.
Bitcoin is already used as such, the alternative. Wherever governments are failing, bitcoin use rises. Compare bitcoin flows with Fed balance sheet flows. The Fed is adding about 40 billion a month to its balance sheet. Bitcoins, with an average ledger entry of six weeks and a market cap of 160 billion implies bitcoin flows of about 100 billion a month, or two Feds.
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