1/🧵
There is a shortage of money in the global financial system. Whether we look at legal tender currency or collateral, both systems are suffering. Digital assets can be a solution to this problem.
1/🧵
There is a shortage of money in the global financial system. Whether we look at legal tender currency or collateral, both systems are suffering. Digital assets can be a solution to this problem.
5/ Ultimately, the value of a currency is derived from the utility, ie economic productivity tied to it. This is something that is going to hinder the asset backed stablecoins.
4/ Algorithmic stablecoins can be created in the trillions. This is what is required. Of course, to do that, value has to be generated first. Here is where the building of the system comes in.
3/ Then we have stablecoins. The problem here is most are opting for the asset backed route, mostly with USD and cash equivalents. This means the expansion is still dependent, for the most part, on commercial bank lending.
2/ The challenge is to have something that can expand along with having price stability. This means most value capture tokens i.e. crypto is out. The volatility makes it ill suited.
There is a shortage of money in the global financial system.
There's a shortage in my bank account too..
this shortage and its cost fueled the interest for crypto and its projects.