toxicbitcoiner on Nostr: “Institutional money” largely exists because of fiat. It’s not here to stay, ...
“Institutional money” largely exists because of fiat. It’s not here to stay, Bitcoin will shrink it dramatically.
Because you can’t reliably save in fiat, you have to buy (financial) assets in order to save. Since you don’t have time to also be a financial analyst on top of whatever main job you have, you give your money to an institution to invest for you. Bitcoin inverts all of that.
Yes, current institutions will buy Bitcoin too, but the side effect is that in doing so, they’re eliminating reservation demand for things that can only be held by custodians (stocks and bonds), thereby making much of their own business model obsolete.
“The Great Definancialization.”
Because you can’t reliably save in fiat, you have to buy (financial) assets in order to save. Since you don’t have time to also be a financial analyst on top of whatever main job you have, you give your money to an institution to invest for you. Bitcoin inverts all of that.
Yes, current institutions will buy Bitcoin too, but the side effect is that in doing so, they’re eliminating reservation demand for things that can only be held by custodians (stocks and bonds), thereby making much of their own business model obsolete.
“The Great Definancialization.”