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Bitcoin as pristine collateral is the advent of NEGATIVE RISK is credit markets.
Every other form of collateral can be diluted over the life of the loan ⚠️
$BTC's absolute digital scarcity means it can NOT be diluted.
This makes Bitcoin a type of auto-deleveraging mechanism, especially over longer timeframes.
TradFi credit is circulating (proof of promise) credit, there is no such thing as negative risk because a promise has no equity value.
BitFi credit is commodity (proof of work) credit, there is negative risk bc there is 24/7/365 liquidity backing the promise (credit).
Negative risk = lower interest rates.