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Nobody expected the Stablecoin Acts to change Crypto overnight but the groundwork has been laid for trillions of dollars to start flowing into these assets next year and it will have transformative effects on both the Cryptocurrency and Traditional Markets. The real question is going to be the timing of whether it predicts or prevents a recession now.
Previously most money from stablecoins flowed into Bitcoin - but now it will flow into onchain derivatives of existing stocks or real estate.
Meanwhile the United States government is quietly swapping the customer of all our domestic debt right before our eyes.
The real volume will be in payments not store of value so the effects won’t be felt by Bitcoin immediately but rather over time.
How much money is in Stablecoins TODAY?
Stablecoins have almost as much value locked in them as Ethereum itself does - the future is MultiChain.
While most Cryptocurrencies have major volatility with their market caps across cycles - Bitcoin and Stablecoins have a very similar one - up and to the right. Overtime more money flows in and even during periods of corrections there is a healthy minimum that this side of the market always maintains.
But people always get it wrong when they assume all of the money that flows into Stablecoins is just going to stay in the existing assets on the blockchain rather than new ones. Bitcoin itself will likely survive but we have to accept that the Altseason we’re used to may be a thing of the past in the traditional sense - and it’ll be because of market makers ability to print new stablecoins.
MY Perspective
The tokenization of the stock and real estate markets will not happen overnight, but the demand will increasingly swell there as fears of a recession mount again - even if they’re able to kick it down the road.
You can place bets on which blockchains will arise victorious - but that’s what they are now - bets. Bitcoin remains the best fundamental investment in the space even if others outpace its performance.
Because there’s one truth underlying all of this and the Russian government has been saying it publicly about America all year. Trump admits it openly when speaking about Bitcoin. All of this is a larger plan to revalue the debt deficit of America. The same way we did in the 1930s and 1970s. And that’s where things get really interesting to me.
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