Part 3/11:
Livingston scrutinizes the traditional fiat system’s fragile foundations. Collateral often comprises assets whose value is declining—government bonds, overhyped real estate, rated corporate bonds—assets that are increasingly vulnerable in a shifting economic landscape. As inflation and rates fluctuate, these assets wobble, exposing systemic fragility.
In contrast, Bitcoin's cryptographic certainty offers a resilient alternative. Its properties—fixed supply, real-time validation, global liquidity—make it an ideal asset to underpin future credit markets. He envisions a financial system where lending occurs almost instantaneously via blockchain confirmation, interest rates are predetermined by mathematical algorithms, and collateral verification is seamless and transparent.