A lot of people don't know this, but financial markets and banks don't close on nights, weekends and holidays to let people rest.

They close because the architecture of their underlying systems are the same as when everything was still analogue. T+2 settlement for certain capital markets or delays in payments are vestiges of an outdated system.

They are comical given the progress the rest of the economy has made. You can get a couch delivered on Sunday, but not your money!

Here's another tell that crypto is going to matter: the same types of people who told us it was dangerous because it as unregulated are not saying it will be more dangerous if it is regulated. In the WSJ: Reminds me of when Bitcoin haters switched from "but all the mining is in China" to " China just banned mining!" as their preferred critique,

The FT story on Hong Kong regulators pressuring banks to onboard crypto companies is revealing on two fronts. The first is the obvious one, China is pivoting hard into crypto. This comes as a surprise to people who thought China "banned" crypto but that's a misunderstanding of how the CCP operates.

It was never about banning, but exerting control over a new industry. This is how State Capitalism works.

I often wonder whether Bitcoiners like @saylor or @jackmallers actually use the Lightning Network. It's not the panacea they promise, and due to certain technical and financial limitations, it never will be. Understanding why is important to the future of Bitcoin, so a 🧵 P2P Channels are at the heart of LN. You can send a payment to anyone you open a channel with on the main chain, up to the amount of you lock up. But this introduces a major cost of capital constraint. Everything is pre-funded, so more channels = more locked up BTC.

Really enjoyed the OddLots interview of
@nic__carter by @TheStalwart and
@tracyalloway but I want to pushback on the point that Bitcoin is a bad inflation hedge. It's based on a narrow view of what makes anything a good inflation hedge.

A thread: The common critique of Bitcoin is that it lost value in 2022, a year of high inflation.

But if the definition of a good inflation hedge is "going up when the CPI is spiking" then the best hedge against dollar inflation last year was......the dollar!

A good rule of thumb for understanding central banking is they create problems that they must expand their powers to fix.

The Fed started the regional banking crisis by exploding deposits during Covid, then rapidly hiking rates. Now it must announce a new facility to stop it. The two most likely solutions are some kind of total deposit guarantee, and a regional TARP.

The deposit guarantee alone won’t stop the bleeding, money will keep going to money market funds for better yield.