#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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More from @brucefenton

19 Jun
DTCC is in the news

DTCC is the centralized trusted 3rd party who runs the ledger for public US stocks.
The ledger is built on antique systems & is complex. It’s comprised of thousands of members who don’t trust each other. The 3rd party is a bottleneck & full of flaws.

The system is complex with many parties who need to interact with the ledgers —

due to regulations like Dodd Frank & antiquated systems, it still takes *days* for securities to transfer between firms
The flaws are massive

You would not believe how bad - in many cases they don’t even know how many shares exist of certain stocks & it doesn’t match up with the number of shares the issuer has listed
Read 10 tweets
23 May
As recently as the early 90s, investors had little idea what their portfolios were worth on a daily basis. Stock quotes were published in newspapers. Only professionals had real time stock quotes. To learn your account balance, you had to call your broker or wait for a statement.
Statements came out quarterly in most cases. Monthly statements were uncommon - and remember, this was all by physical mail.
Day trading was far more rare than today.
This created more long term thinking for many investors.
Wise investors had a plan and would stick to it.
Today we have a plethora of information we can access & act on instantly. Those who make money from this model encourage active trading, but it is antithetical to sound investing. Looking at your account daily & trading daily is more often a formula for ruin than wealth creation.
Read 7 tweets
21 May
Definition of a security in the US based on the 1933 Act:

any note,
treasury stock,
security future,
security-based swap,
evidence of indebtedness,
certificate of interest or participation in any profit-sharing agreement,
collateral-trust certificate,


preorganization certificate or subscription,
transferable share,
investment contract, (⬅️⬅️⬅️ that’s a big one)
voting-trust certificate,
certificate of deposit for a security,
fractional undivided interest in oil, gas, or other mineral rights,
any put,

or privilege on any security,
certificate of deposit,
or group or index of securities (including any interest therein or based on the value thereof),
or any put,
or privilege entered into on a national securities exchange relating to foreign currency,
Read 7 tweets
4 Apr
Some don’t know:

Muslims believe in Jesus.
In Islam, Jesus Christ is considered a prophet who’s name is followed by “Peace be upon him”. Jesus is in more verses of the Koran than anyone other than the Prophet Mohammed. Muslims also believe Jesus was born of the Virgin Mary

2) and that Jesus healed the sick. Many Muslims are named after Jesus and Mary.
Where Christianity and Islam differ most on this is that Christians believe Jesus was the son of God, died for our sins and was resurrected
many Muslims believe he was more of a spiritual son of God
3) and believe that his death was not for our sins. The Koran says that Jesus was crucified but not resurrected but people were led to believe this — what this means interpreted various ways- some Muslims believe Jesus did come back three days later but it
Read 7 tweets
12 Feb
I’ve only been out in the world less than 10 times in the last year. Worn a mask less than 10 times.
Went out yesterday.
People have gone nuts. The masks, the signs everywhere, restrictions; the general mood. Businesses closed everywhere. It’s an authoritarian hellscape.
Totally nonsensical and non-scientific wackiness in the name of “science”. I heard you can get a massage or facial but you still have to wear a mask - that’s just pure nonsense. Wearing masks when jogging or walking alone is insanity.
We have kids in schools with useless plexiglass barriers - arrows drawn on the floor telling people where to walk. People being arrested for walking down the street. Vendors refusing US dollars with the excuse of concern over inflection.
College kids are getting tested weekly.
Read 12 tweets
31 Jan

Send your champions - I will debate anyone on this.

It’s a complex topic not well suited for tweets.

But yes, much of this is solved by DLTs.

Root issue is a bad ledger & trusted 3rd parties.

A database can’t fix this.
A database is what we already have on Wall St and it’s a mess.

Understanding how to fix it first requires understanding how it works now (it’s counterintuitive). It’s a mistake to assume it’s an easy fix with “a database”.
A solution has to solve the problem of hundreds of various parties not trusting each other and complex high volume reporting and other factors.
It’s all about saying what is true in an untrusted environment.
Blockchains are actually good at that.
Read 8 tweets

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