If we have to bring TradeFi onchain, it must be as a layer 2 solution for head-strong boomers.
Traditional finance has a lot of strengths, but it also has quite a number of weaknesses, otherwise we wouldn't have crypto in the first place.
4-7 years ago most crypto related coverages and project launches were focused on “replacing” traditional finance, but today, it all seems like we're mostly trying to “integrate” and impress, it's simply pathetic.
The goal should be to improve, not integrate.
But what can we expect when the largest crypto asset and community has become about gaining the love of traditional institutions and the governments?
Making a deal with the devil
It has become clear that a lot of people now only care about numbers going up and institutions and the governments are fully aware of that.
You know, a lot of times I ask myself, how much money is too much to spend to remain in control of people(the world)?
$10 billion ? 100? 500? Or maybe even $1 trillion?
The average person looks at that and says; the government would never blow up $1 trillion for nothing. “Nothing?” maybe not, but “governance and essentially economic control?”
$1 trillion is steal.
But, that's not to say that it is cheap, it isn't because that value mentioned is a small amount, it's rather because it's not “out of pocket” for them — it never has been and it never will be.
The money the government will spend to maintain power is always a loan from the future, to which “you,” the very person they are fighting, will have that debt pass onto and it will be collected in quite a number of funny ways.
It could be through stiffening the money supply, access to cash grows difficult, forcing you to take on banking fees to pay for basic things, you should ask Nigeria how their central banking system forced the entire population into literally purchasing their national currency as a good(an illegal practice by the way), paying up to 50% more on its value.
Need $15,000 cash in NG? That will essentially cost you $20,000 from point of sale suppliers.
Don't want to pay that much? Then stick to electronic payments. And this is just one of its newly integrated plays to tax the vast population, indirectly and people wonder why the Nation has the highest crypto adoption growth rate.
All of this is happening because the government of the supposed “giant of Africa” has taken on numerous debts to keep governance and economic power. A notable piece of their work was borrowing to manipulate their FX to stay below actual valuation and when they ran out of reserves across all major banks, the Citizens had to pay the expensive debt.
For every dollar you make, you'll pay back 10
When you get a handout from your Father or Mother, it's considered family support and you generally may not be required to pay back, but when you get a handout from the government, you'll be paying back 10x or more.
This is the reality of Government subsidies and every bit of expensive endeavours they undertake to keep their poorly designed economic system afloat and maintain governance power.
By having the people take on the debt every step of the way, the economic system will generally appear functionally sound but it's really just a highly engineered scam.
As such, when I see Bitcoiners or generally any so-called crypto enthusiasts that's heavily focused on numbers going up and exit strategies, all I see is a person that's essentially taken the bait the system has planted.
Numerous governments of the world are rushing to buy out Bitcoin for their reserves and you think it's a good thing?
If the government buys out Bitcoin, miners will go bankrupt and the network will be essentially centralized and a new central banking system will be formed atop the “digital Gold standard” but we are too focused on the present price performances and hype and totally forgot who still controls the most money in the world.
Decentralization is not an economic fix
Decentralization is just a governance fix, it has nothing to do with the economic side of things. That's a segment of the industry that still needs heavy focus.
We can't just want to bring everything that's done in traditional finance onchain and hope it works but it will not, in the long-term because what essentially makes it work out there is centralization and that comes with vast exploitation, which is against the very concept of community-based building.
What we ought to do is look at where the system is failing, traditionally and what makes it so, then build above its flaws.
Governance is fundamental to it all, that's a known fact, but changing the governance structure alone isn't going to cut it. It should be quite clear to those actually paying attention that a truly decentralized network can still fail because a thriving economy isn't built on one thing.
We have to create room for a vast number of skills to be utilized. The ecosystem has to be like a marketplace being fully capitalized.
Builders build, security experts audit, economists develop incentives flow, consumers explore and offer feedback, governance processes optimize needed areas.
This is how we grow into a powerful decentralized economy.