Hey everyone, I just published a new piece on axiom.btc where I outline the prospects for Bitcoin-centric money market funds. You can find it here: https://www.axiombtc.capital/orange
In the piece, I explain the current challenges money managers are facing in the context of inflation, rate hikes, and looming financial repression. I also make the case for a portion of that capital seeking refuge in financial products built upon Bitcoin.
These products would leverage Bitcoin's properties, such as a sound monetary policy, censorship resistance, 100% liveness, etc., to offer dollar deposit facilities that generate competitive yields, provide uninterrupted service, and ensure censorship resistance for their users. Additionally, I delve into how Discreet Log Contracts (DLCs), new techniques that enhance Bitcoin's programmability, can be utilized to eliminate counterparty risk in such deposit facilities.
I also participated in a podcast with Marty Bent for TFTC where we discussed the article and the impact of such products on Bitcoin's adoption.
The article is available in both French and English. If you are proficient in both languages, I would recommend reading it in English since that was the language it was originally written in.
In the next release, I will discuss ergodicity economics and how these concepts can be used to gain a better understanding of the dynamics of financial markets in general, including Bitcoin's price volatility.
Have a great week!
Théo Mogenet