There's bubbles in the crypto space. But... legacy finance persons cannot grasp the time frame in which they play out. What takes often years, if not decades in legacy systems, occur in days, weeks and rarely months in the crypto space.

The perfect, most recent example is DeFi Summer 2020. Arguable lasting between May and June, September 1st the beginning of the unravel. It took until the end of December for DeFi to start to inflate again, and here we are with something that feels quite different.

What has emerged from the 2020 DeFi bubble are systems that was not 100% obvious at the time to become what they currently are. AMMs with billions in TVL, and a metaphoric monetary velocity of lending and borrowing that's vertical compared to collapsing M2.

Bubbles are inevitable, but something new is playing out, something different than just a broadly over inflating market. There's nuances to the market analysis. Each asset much receive respectful due diligence. I feel less bubbles currently, and...

... a sense of more more organic sustainable growth across a spectrum of crypto assets. The bubbles are often obvious, the pump&dumps obvious, but likewise systems with billions in TVL are equally obvious to have a sustainable and growing network effect.

Most notable about the emergent systems is they mirror the functionality of legacy financial structures, broadly in some regards, but functionally comparable. Systems involving lending and borrowing. Systems creating synthetic assets, derivatives, and options.

Collateralized debt positions are probably the most comparable to legacy systems, and are a spectacle to wittness grow to what they have become.

There will be doubt, there will be disbelief, but in due course the systems will either prove sustainability, or fail in some regard.

For what it's worth, sustainability seems to be the most likely observation. What's occurring, and the way it parallels legacy systems is uncanny, exciting, and shocking in many regards.

To put it simply, if it worked for the legacy financial system, comparable systems created in the crypto space much work based on the same premise.

And... it's only getting started. Welcome, enjoy, stay a while. Play with the systems, understand how they work, and...

... soon enough you also may begin to see how INCREDIBLY disruptive of legacy systems they likely will become. One word best surmised the sentiment I have, with regard to the ultimate effect on legacy systems.

#Deprecation