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 don´t know Arthur, he was the founder of Bitmex so he kinda knows his stuff and what he said came down to this:
“BlackRock, the world’s 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 ‘hard’ 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!”
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.
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. 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 don´t expect BTC to be around, or at least not King Crypto by then. Monetary systems change, and technology evolves.
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 it´s probably bye-bye Bitcoin....
But for a very different and way less Doomsday reason than Arthur predicted.
Till then it´s 𝑩𝒖𝒚 𝑩𝒖𝒚 𝑩𝒊𝒕𝒄𝒐𝒊𝒏 if you ask me......
Thank goodness you made it till the end Pees, Love and I am out of here!
Don´t forget to hit that like button on your way to my next post as it´s one of the few free things left in this life.
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𝐁𝐓𝐂 𝔼𝕋𝔽 𝔸𝕡𝕡𝕣𝕠𝕧𝕒𝕝 𝐖𝐢𝐥𝐥 𝐌𝐚𝐤𝐞 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐂𝐫𝐚𝐬𝐡
𝗠𝗮𝗸𝗶𝗻𝗴 (𝗠𝗲𝗺𝗲) 𝗙𝘂𝗻 𝗢𝗳 𝗚𝗮𝗿𝘆 𝗚 𝗯𝗲𝗳𝗼𝗿𝗲 𝗵𝗲´𝘀 𝔽𝕚𝕣𝕖𝕕
𝗜 𝗲𝘅𝗽𝗲𝗰𝘁 𝘁𝗵𝗲 𝔹𝕋ℂ 𝕋𝕠𝕡 𝕥𝕙𝕚𝕤 𝔹𝕦𝕝𝕝 ℝ𝕦𝕟 𝗧𝗼 𝗕𝗲 𝗯𝗲𝗹𝗼𝘄 𝟭𝟱𝟬𝗞
𝔹𝕦𝕝𝕝 𝕄𝕒𝕣𝕜𝕖𝕥 𝕁𝕦𝕤𝕥 𝕊𝕥𝕒𝕣𝕥𝕖𝕕 & 𝗔𝗹𝗿𝗲𝗮𝗱𝘆 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗠𝘆 𝗖𝗿𝘆𝗽𝘁𝗼 𝗘𝘅𝗶𝘁
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