This is certainly the case. People do not realize how big this is going to become. We are looking at quadrillions in value being captured and monetized. That is the key. It is already out there but not monetized.
Cryptocurrency changes that.
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Wow! I could not comprehend such a huge amount of wealth. I wonder how many billionaires and millionaires will be created once all these things started to roll out.
Even more importantly, how many people making a few hundred grand will come from this? That is the key. Uplifting all of humanity. The biggest impact always comes from the bottom.
You are writing about the Eurodollar system. Just consider what is in there. There are trillions of dollars of trilateral loans through Repo. We have no idea of the bilateral but my guess is tens of trillions. And that is just daily activity.
What the total value of that? We know there are at least $750 trillion in derivatives alone. Add in FX reserve, cross border payment liabilities, international debt securities, and OTC FX transmissions and what do you get?
A shit ton of money in all it various forms.
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I seem to take this for granted, but I think you're right. What matters is not the "big thing." For many, just making thousands or hundreds of USD from crypto is already big.
"Tens of trillions," just for daily activity? That's really beyond comprehension for a new reader of the Eurodollar market. However, somehow this gives us a reference for the amount of wealth that can be created in the crypto space.
The Repo market is $3-$4T per day. That is what the custodian (Bank of NY Mellon) and the primary dealers report.
What happens with the bilateral agreements? We honestly can only guess. There is no way to track an overnight agreement between a bank in Cyprus and one in the UAE.
What we do know is there is a collateral shortage and pristine collateral is US Treasuries. There is about $@0 trillion of those out there and there is a shortage.
So how much is being done each day? We can only guess.
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