THREAD

In the midst of alt-coin carnage, it's probably a good time to time post a thread about the future of alt-coins. And where its place may be in crypto-cap dominance.

SoV buckets (very roughly):
$12T Gold
$90T Fiat
$100T Stocks
$100T Bonds
$250T Real Estate

Derivatives = $1000T+

Derivatives encapsulates the buying, selling and transmission of risk. The modern world is enabled by them.

Want insurance for your house? Do you want food that farmers will grow? How about funding for your first business?

Derivatives enable the risk market to enable these activities for you. They use collateral in the form of SoV to operate.

DeFi in its current form is an experimental area where we figure out how to build networks to buy, sell and transmit risk. For that to happen the underlying networks will need to draw value into their market caps to use as collateral.

In the traditional world it's a 2:1 ratio between derivatives and SoV. That would translate to a BTC dominance of 33%.

The first thing to build is SoV, that's why BTC dominance has been so high. It's possible it continues a downtrend towards 33%.

We're currently in a phase of weeding out scams, ponzis and security frauds from legitimate experiments. The ride will be choppy.