Thread by @CaitlinLong_

1/ WELL WRITTEN article--thx @Vlajournaliste. A couple of key points: "The assumption that #WallSt matters to #bitcoin is a fallacy because the information frontier is not in New York. It's not in Silicon Valley either. These mkts are decentralized."
businessinsider.com/bitcoin-invest…

2/ "It means at the end of the day that Wall Street will never be able to have [central] clearing for digital assets," she said, "because Wall Street will never be able to get its hands on a sufficient amount of the collateral to create a true clearinghouse."

3/ "She explains that 75% to 80% of #bitcoin and ether, on average, are held by individuals rather than intermediaries, and during bull markets, even less crypto is held by intermediaries." (h/t @nic__carter)

4/ #WallSt has "mkt structure debt" in the same way incumbents think of "tech debt"--Wall Street is stuck with an outdated, layered market structure & switching costs to fix it are very high.

5/ "We are stuck with this layered market structure [on #WallSt] where each intermediary has to process transactions in sequence, they can't do it simultaneously," she said."

6/ "Because of these market structure issues that need to delay settlement, it creates counterparty risk and ties up capital. And one of the fundamental tenets of finance is if you can turn your capital more frequently, you increase your returns."

7/ Traditional finance uses leverage to create liquidity & monetary velocity, but #bitcoin doesn't need leverage to do so bc fast settlement w/ irreversibility creates high velocity organically w/o needing to use leverage--so as a system #bitcoin is inherently more stable. Enjoy!