I know you all love me for my long and funny posts, but today you only get this brain fart for Christmas!
There was this Wiseman from the East called Arthur Hayes, and I gotta admit I normally do listen to the dude.
I will even admit that the scenario he predicts is not totally out of the question, but it is pulled out of context. It should have come with the disclaimer saying :
Now for those who donยดt know Arthur, he was the founder of Bitmex so he kinda knows his stuff and what he said came down to this:
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โBlackRock, the worldโs largest TradFi asset manager, is in the asset accumulation game. They vacuum up assets, store them in a metaphorical vault, issue a tradable security, and charge a management fee for their โhardโ work."
Imagine a future where the largest Western and Chinese asset managers hold all the Bitcoin in circulation. This happens organically as people confuse a financial asset with a store of value. Because of their confusion and laziness, people purchase Bitcoin ETF derivatives rather than buying and hodling Bitcoin in self-custodied wallets.
Now that a handful of firms hold all the Bitcoin, and have no actual use for the Bitcoin blockchain, the coins never move again. The end result is miners turn off their machines as they can no longer pay for the energy required to run them. Bye-bye, Bitcoin!โ
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My Humble Pie Opinion
If BR wants to vacuum up all BTC in existence they will have to pay driving the price up.
If there is a future where the demand is so extreme that BR and China need to hold 80% of the BTC supply because of popular demand it would have an immense effect on the price.ย
Currently, BR manages just under 10 trillion in total and BTC's fully diluted market cap is $906,475,677,493 (at 43K) (almost 1 trillion).
Now, that popular demand would make BTC go up at least 20X to around $800K.ย That would make BTC worth 20 trillion fully diluted. Even the little devils at BR do not have the money to buy 80%, not even working with or against the Chinese.
Keep in mind that miners make the most from mining and at those prices, they would happily keep mining till 2140 when the last Bitcoin will be mined.
In addition, the majority of BTC is already spread and many are long-time hodlers, hence already not transacting only 25% of the BTC keeps moving around providing some fees to the miners.
Now let's go to 2140, if BTC or better said when BTC is king. I donยดt expect BTC to be around, or at least not King Crypto by then. Monetary systems change, and technology evolves.ย
The experiment of letting go of the gold standard is failing, but it took 100 years for it to do so.
Logically a decentralized global currency will replace the current politically controlled currencies at some point, but there is always a next step. In time there will be better Tech, so by 2140 itยดs probably bye-bye Bitcoin....ย
But for a very different and way less Doomsday reason than Arthur predicted.ย
Till then itยดs ๐ฉ๐๐ ๐ฉ๐๐ ๐ฉ๐๐๐๐๐๐ if you ask me......
Thank goodness you made it till the end Pees, Love and I am out of here!
Donยดt forget to hit that like button on your way to my next post as itยดs one of the few free things left in this life.
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