My latest on Forbes.com is here! Chain forks and rehypothecated bitcoins don’t mix well and could cause the financial system to experience losses if it has any uncovered exposure to bitcoins amid a hard fork. The simple reason they don’t mix well is that the two systems are fundamentally not compatible. But there’s also a simple way to prevent losses: (1) never commingle bitcoin, (2) never rehypothecate bitcoin, and (3) always require 100% collateralization of any bitcoin-substitute, even intra-day. I realize, however, that this is not how Wall Street works. Rehypothecation is as integral to Wall Street as it is antithetical to bitcoin. Enjoy!
Bitcoin/blockchain, ex-Wyoming Blockchain Task Force, 22-year Wall Street veteran.
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