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Are we still banging the rocks together?


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As a creature of habit one tends to stick with the familiar, the usual, the normal and view with scepticism anything that doesn't fit within well known  parameters. That includes, in my case, trading. However, times change and tempus fugit and we are too young to be so old, as to not at least examine and understand the new. I am not only talking about algorithmic trading but of decentralised finance, web 3.0 and the ramifications for global finance. And it's happening now. It is foolish to ignore or reject out of hand for reasons of being new and wildly unstable, as it is no longer new and is rapidly becoming a feature of doing business and trading now. Decentralised finance and crypto currently trades around $2-3 trillion dollars a day. This is growing. I am a dinosaur dealing mostly in Oil and gasoline, but even I have to pay attention to a cpuple of trillion bucks and counting. 

It seems web 3.0 is everything that web 1.0 wanted to be. Web 1.0  morphed into web 2.0 slowly after the dot com bubble burst in 2000-2001, as a consequence of data monetisation, which the FANGs profit from mightily.  Sceptics at the time (2001) thought then the web was dead and they could happily return to the old analogue world. Not so. Web 3.0 promises to end said hegemony of the Fangs, not to mention banking hegemony, central banking, fiat currency, in fact anything where data is aggregated, connected and used, including the management of connected machines and associated  AI systems. In short, a revolution. I would have been perfectly happy to ignore it. 

When Facebook wanted to create their own crypto currency, the Libra, you can see they understood the opportunity and  long term threat to their very existence and the promise of crypto. Zuckerberg must be peeved with the anti-trust boys and girls on that one (No you can't print your own money Mark). With the new generation Web 3.0  control of ones data reverts to the individual or company. The system is transparent and decentralised. Meaning companies will have to pay you for trading or using it (your data). A paradigm shift. The same can be said for banking and legacy banks may well be having quiet panic attacks on regular basis when considering  their future, especially when they look at comparable Fintecs (Celsius for example). Let's not even mention mostly bankrupt or wholly unsustainably indebted fiat currencies and the role of central banks in a De-Fi new world. No wonder Jerome is keeping quiet and adopting a wait, we are real busy right now and we shall see, attitude to crypto. Not to mention trying to shut down XRP (it wont work, classifying it as a security not a currency might). The ramifications are terrifying and limitless. But so are the possibilities. As I mention it would be easy to ignore or discount were it not becoming the elephant in the room. As an oil trader I am insulated from this more than most, save the algo traders who are quicker and more efficient and without any trace of emotion. But I am not losing sleep yet.

I mention this because sure as we knew the internet was going to change our lives, but didn't exactly know how, Web 3.0 will absolutely and radically change our lives and we must embrace it, as like it or not, it is a growing part of our future. Bitcoin may be a bubble yet to burst ( weekend flash crash, for example) but crypto, blockchain and DeFi are most certainly, here to stay.

Hope everyone has a good week and profitable trading to all!

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