Solutions to the K-shaped economy
Mike Belshe gave the clearest breakdown of the “K-shaped economy” I’ve heard.
Cash loses value every year, so the only way to stay ahead is to hold assets. But most Americans can’t.
They get paid in cash and spend it all on rent, food, insurance, and medical bills.
Nothing is left to invest.
Even those who scrape together $10k in stock get pushed back out. The car breaks down, a medical bill hits, and they have to sell. Back to cash, back to the treadmill.
The wealthy play a different game. They borrow against their assets and repay in dollars that are worth less every year. Borrowing dollars is effectively being short the dollar. Banks happily lend to them.
If you’re small, the bank says you’re not worth the effort, so you have to sell instead.
Same system, two completely different outcomes.
Belshe’s fix: tokenize everything. Cut the cost of financial services until anyone can borrow against their assets instead of selling them.
Crypto is the bridge that lets regular people get the same things the rich get.
Belshe lists Bitcoin as one of several tools, alongside tokenized stocks, stablecoins, and shielded assets like Zcash.
But it could be argued that it’s the natural starting point.
If the problem is holding a currency that loses value, Bitcoin is the asset with a fixed supply that no central bank can expand.
He’s said elsewhere that this fixed supply is the core promise of the protocol.
Self-custody matters here too. Belshe calls it the escape hatch if institutions ever fail people. Holding your own keys means no bank decides whether you’re worth serving.
Escape the devaluing dollar with a hard asset.
Use tokenized lending so you don’t have to sell it when life happens.
The rich have always had these tools.
Crypto is the first real chance to give them to everyone.
For the full episode with
@mikebelshe CEO of
@BitGo, check out the full interview here.
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