Thread by @brucefenton

#Bitcoin as global money will change securities - There’s no way securities ledgers will exist in their current old school form - securities will exist but transform

Securities include all stocks, bonds, PE, VC, startups, public companies, small businesses, most real estate...

The current system for how securities move around is antiquated — Due to the need for multiple competing partial ledgers from brokers & clearing firms, the system relies on trusted third parties such as DTCC in the US
This can be replaced by a distributed ledger & be improved

This is one of the cases where a blockchain/ distributed ledger makes sense: to solve a variation of the Byzantine Generals Dilemma— your broker doesn’t have the full ledger of all the stock an issuer has, neither does the issuer- DLT means the chain could tell us who owns what

If we can make securities move better it changes everything: it becomes quicker, easier & cheaper to move securities between parties — this means more liquidity and WAY more securities trading - like hundreds of thousands
Everything from small businesses to land to collectibles

The value is already there — it’s just illiquid and takes days or weeks or months to move
A piece of forest land in northern Oregon or a decades old tire shop in Omaha have real value - they are just very hard to get liquidity for - with tokenized securities pricing is possible

And the pricing will eventually be fair — someone can buy $100 worth of the land or the tire shop — this also in turn means more shareholders & more stakeholders — which also helps the businesses & increases value

This is true free market economics being unleashed

Btw I still don’t get how few DeFi projects seem to not get this or hand wave it away

Securities are the major backbone of the world economy — stocks for example — stocks —- a pretty big deal to say the least

How are you the Fi part of DeFi if you can’t even do stocks?!

Best way to do it is a decentralized base layer with 2nd layer tools built on top that allow compliance with various jurisdictions or other screens users need

But overall I think #Bitcoin as money will lead some massive change in how the assets of the world are valued & traded
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