,
6 tweets,
1 min read
Read on Twitter
1/ Research has shown that credit expansion by banks in emerging markets may be significantly constrained by the inability of the banks to reduce the liquidity risk associated with nonsecuritised loans. Lack of depth / margins.
2/ The tokenization of any real world asset can allow for securitization without 3rd party friction. Historically, the benefits of both sides of this process has been reserved for a select few nations / investors. P2P equity has never been unlocked.
3/ The next global recession will see a marked retreat of credit markets, defaults on debt obligations, and a collapse of global liquidity. In this context, trustless systems that don't rely on centralized institutions (with directed risk tolerances) will take the lead in the ...
4/... world economy. This is highly likely as the next recession will arise from systemic forces that have been cultivated over a long period of time, coupled with big demographic changes (generational transfer). Confidence will shift from institutions to consensus algorithms.
5/ Not only will cryptographic ledgers supplant lenders, AI & machine learning will commodify the process of constructing a successful portfolio & making risk assessments. You won't need to be a financial expert to invest in business, nations, or people.
6/ This is the ultimate disintermediation, financial aggregators losing their grip on value transfer, assessments of value, and aggregate decision making. The average person will have tools on their person doing what Wall Street tycoons do now, data and computation will rule.
