The Crypto Ecosystem

One of the things I have seen in the crypto ecosystem is entrepreneurs try to set up companies that mimic what is going on in the traditional ecosystem. There are exchanges, brokerages, prime brokerages and a lot of the things you see in traditional finance.

However, at the end of the day, I don’t think the crypto ecosystem will look like the traditional financial ecosystem. Innovation isn’t like that.

The key component of crypto for me is the decentralization part combined with the proof of trust/work part. That leads itself to blowing up a traditional ecosystem.
However, the traditional ecosystem won’t be blown up. Governments, policymakers and the public don’t want that to happen. It’s not just about command and control but it is about order and traditional ways of doing business.

I think that when you see people interact with a crypto ecosystem without even knowing it, you’ll have something. Sort of like but not exactly like when Netscape debuted with
the browser that made surfing the internet a snap. Netscape was a gigantic revelation for people like me that tried to surf the web prior to it existing.

Arbitrage makes things more efficient. Markets allocate capital significantly better than centralized control. There is no reason why an arbitrage market can’t be established between crypto and fiat. No need for stablecoins and all the artificial bridges. Make a market. As an old pit trader, I think that was one of the most challenging things to do when an order filler asked you that question. “Make me a market in X”-and you had to do it instantaneously. If they hit your bid or lifted your offer you better know what to do. Spread, lay off in another market. Do a complimentary option trade. Or, inventory.

Why can’t a parallel ecosystem that works differently happen?