What Bitcoin Did
The Global Financial System Is Structurally Broken | David Dredge
- Risk is **vulnerability and positioning**, not volatility; volatility itself is rewarding and necessary for good returns.
- Sharp World's flawed metrics (Sharpe ratio, value-at-risk) incentivise leverage on suppressed-volatility assets, manufacturing systemic fragility that banking regulators codify.
- Options markets and structured products (auto-callables, covered calls) are introducing TradFi-style leverage into Bitcoin via iBit options and embedded short-volatility strategies, creating undercapitalised tail risk.
- Max pain dynamics emerge when leverage builds on the wrong side of derivative positioning; market moves to trigger the most pain for undercapitalised risk holders.
- Demographic collapse—declining working-age populations and savers—makes future bond buying and tax revenue structurally impossible under current fiat policy; the system must either print or break.
- Bitcoin remains a hedge against asset inflation and currency debasement, but TradFi integration threatens to corrupt it with leverage and systemic contagion risk.