Talked to some “defi" guys today. They were saying that there would be a new system for bitcoin to earn yield on smart contract blockchains.. I said you don’t need yield if your money is not being debased. They said the financial system isn’t going away. I said it might (to a great extent) if no one needs to supply it with money looking for a return in order to avoid debasement.
This is the great question IMO: who coopts whom?
We shall see what the consensus ends up being. I'm on team scarcity.
My money is on the bankers and billionaires. People idolize these figures and have allowed them to set the narrative to suite themselves rather than everyone else.
P2P cash or it doesn't solve the problem.
I would take the other side of that bet — I think they’ll find the asset too hard to do what they hoped with it.
Of course that is what I would like to see.
What would be the point that we admitted it has failed, if it was to go that way?
I think it’s already won, and they don’t know it yet, like they will try to fractionally reserve lend it, but when there’s a run, they won’t be able to get bailed out, and everyone will demand proof of reserves, and the fractional lending on which the system depends will no longer be possible.
The way it would fail is if everyone were to just fractionally-reserve lend it, and no one cared about the virtual infinite supply. But it’s too late for that.
