crypto

Had a conversation with a hedge fund manager earlier

His biggest reason for crypto skepticism (esp. the macro thesis):

Since crypto is going after “money,” the biggest risk is sovereign states banning it
And the more successful crypto is, the more likely it is to be banned

What are your best counter-arguments?

After doing some thinking, here are some of my thoughts re: this risk
Lmk what y'all think

- pro crypto creates US hub for talent and business (good for country, GDP, tax revenue)
- lots of financial payments on crypto still done in USD
- more likely to draw away money from other, worse currencies than USD (if anything, creates more liquidity/better systems for USD democratizing USD access to other countries) - if the best money wins, and crypto is infrastructure, there’s still a place for USD, not so much for other, less good currencies
- more likely another good option for a new economy, not necessarily needing to replace anything
- more store of value/commodity than unit of exchange

Key risk to the dollar isn't crypto itself but a failure by the US to innovate with blockchain tech - would allow other countries to leapfrog in the race toward innovative/digital finance
Could actually argue that embracing and clearly regulating crypto is likely to strengthen the dollar’s role, not weaken it

building a crypto hedge fund | /comma, comma.org/, & /ic | in pursuit of more aliveness | prev: founding team @ Tally Health, investor @ L Catterton

What do you think the risk level is of US banning it with that in mind?

key crypto risk to the dollar, imo: 

- the majority of onchain stablecoins are foreign currencies

- the majority of onchain assets/stablecoin issuers are not US regulated