Speaker 2
You said, you said something very interesting, which is taid, anything is investible, you think, if the use case holds. And em, i would like to connect that to something. Ik, paul graham tweeded the other day. And, and i think the tweed was something lie his kid asked hime why we need the financial sector in general, and and he couldn't come up with any explanation ando try to then present it as some kind of godshaw. So an when we look at defi to day, it seems to be very self referential. That's not a lot of real wouce cases. And i think most people see that as well when they look at the regular financial system. So i a very genuil question for both of you. Why does the word needs a financial system, of financial sector? I
Speaker 1
think am i' have the first tep at that. I think a what people underply or underwrite, is the the importance of the cost of capital in an economy. And if you look across the world and the world's leading economy, ou'll generally find a pretty strong correlation between the efficiency of capital that's available to entreboners and businesses and the growth and the wealth that accrues in those economies em and i would say that having a sophisticated financial system, you could argue gets over sophisticated and goes down the wrong paths at many times. But ultimately, eacs purpose is to find the most efficient way to raise and use capital across the economy. And yifelooked the us. Economy, it's clearly the biggest bull of capital in the world. On most measures. It's the most efficient and cheapest poll of capital. Hence why so many companies like to list ther can get access to that liquidity. And so it's no surprise that they've sworn some of the greatest companies the world's ever seen based off the fact of their extremely efficient market. So my response to that twet would be that i see the key purpose the financial services sectr apart from thethe services it provides to the retil mortgage holders and those sorts of things, is really to provide added efficiency at that capital, efficiency at that capital that capital formulation layer, allowing companies to the cost of capital and be the most efficient uses of capitald and most efficient financiers of the growth ht they tring to produce.