What Bitcoin Did The Global Financial System Is Structurally Broken | David Dredge
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Dec 26, 2025 
David Dredge, a seasoned market risk specialist, explores the misinterpretation of risk across global markets. He highlights that Bitcoin's recent struggles reflect structural stress, not failure. Dredge discusses how suppressed volatility invites dangerous leverage, transforming Bitcoin's market landscape through ETFs and options. He warns of systemic vulnerabilities due to traditional finance's interference, critiques central bank policies, and stresses the importance of owning participatory assets and hedges to navigate potential financial turmoil.
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1987 Crash Shaped His Risk Career
- David arrived in Singapore just before the October 1987 crash and saw markets collapse firsthand.
- That experience convinced him the industry's risk metrics were fundamentally flawed.
Volatility Is Not The Same As Risk
- Volatility is a poor proxy for risk because upside and downside volatility differ in value.
- Measuring risk by average volatility (Sharpe world) creates perverse incentives that hide true vulnerability.
Build A Portfolio Opposite Of ‘Sharpe World’
- Own naturally volatile, thin-tailed assets that reward upside participation.
- Hedge with fat-tailed, convex instruments to protect against systemic left-tail events.