collected some thoughts to share on linkedin. would appreciate some bitcoiner feedback before i ship it there. https://seha.cc/we-need-sound-banking/

this is a tough weekend to be off twitter with everything going on. i wish some of the leading names were more active here with news updates and commentary.

all-in gang asking for US taxpayers to bail out SVB depositors and hold a bag full of venture companies 🫥

we can pump fast if a few billionaires get orange pilled through this mess.. we can pump slowly if we keep building tools average people can use on a daily basis… i would much rather pump slowly, though none of us can prevent the fast pumps when the billionaires show up…

good summary of the SVB run… perhaps we should think of ways to move away from a fractionally-reserved banking system so banks don’t collapse every time “a critical mass of people worry that a critical mass of people will pull their money out” 🤔

Why was there a run on Silicon Valley Bank?

And how will this affect startups and the financial system?

a banking system cannot be fractionally reserved and sufficiently decentralized at the same time. when fractional, reserves consolidate to the biggest banks. with full reserves, banks big and small can all withstand a run.

gm, we’re one bank away from seeing significant disruption to on/off ramps in the US

tick tock, next block

“Everything other than bitcoin,” Gensler told me, “you can find a website, you can find a group of entrepreneurs, they might set up their legal entities in a tax haven offshore, they might have a foundation, they might lawyer it up to try to arbitrage and make it hard jurisdictionally or so forth.”