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The case for bitcoin as collateral The value of the global market for collateral is estimated to be close to $20 trillion in assets. Government bonds and cash-based securities alike are currently the most important parts of a well-functioning collateral market. However, in that, there is a growing weakness as rehypothecation creates a systemic risk in the financial system as a whole. The increasing reuse of collateral makes these assets far from risk-free and shows the potential instability of the financial markets and that it is more fragile than many would like to admit.
Bitcoin could become an important part of the solution and challenge the dominating collateral assets in the future.
Bitcoin’s unique properties make it the perfect collateral asset Bitcoin’s combination of properties is unlike those of any other asset classes: It is an asset without both counterparty risk and credit risk. It is available for trading 24/7, 365 days a year, all over the world. In addition, it is the most portable asset the world has ever seen. Bitcoin can be transferred around the world, instantly, at almost no cost, any time of the day, and any day of the year, and with full finality. No other assets can match these properties today, making bitcoin the perfect collateral asset for the future.
Ark Invest introduces a framework to analyze bitcoin’s fundamentals in more depth than we believe is usually possible for any traditional asset.
The key exchanges, funds, and market makers that define crypto in China, Japan, Korea, Hong Kong, Singapore, and Southeast Asia, with commentary on regulatory and investment trends.
This article aims to introduce the overview landscape and share knowledge collected around the several most major protocols. In this piece we touched the overlap on user base of Maker and Compound, and with additional research on user base and systematic risks.
CoinDesk's latest quarterly review looks at the performance of Bitcoin and Ether compared to macro assets and other crypto assets, and at their progress, milestones and value drivers over the final three months of 2020.
