jeromeloman on Nostr: Banking and capital markets structure have literal license to print money and it’s ...
Banking and capital markets structure have literal license to print money and it’s easy money.
Huge benefits for entities who can establish credit line and swap line, while the rest of us are stuck using outdated access to credits.
It’s a big club and the network effect is pretty strong, everyone is hooked to the cheap leverage.
They only need to comply with regulators and government “asks” but else it’s all about maximizing return on equity and leveraging balance sheet while keeping capital requirements metrics under a threshold.
At the end of the day the incentives are to make money, and there is no second best so eventually most of collateral will move to btc and the fiat will become a meme.
Huge benefits for entities who can establish credit line and swap line, while the rest of us are stuck using outdated access to credits.
It’s a big club and the network effect is pretty strong, everyone is hooked to the cheap leverage.
They only need to comply with regulators and government “asks” but else it’s all about maximizing return on equity and leveraging balance sheet while keeping capital requirements metrics under a threshold.
At the end of the day the incentives are to make money, and there is no second best so eventually most of collateral will move to btc and the fiat will become a meme.