Expert Reveals How “Fake Supply” Is Killing Your Bitcoin Gains
Caitlin Lengthy, the founder and CEO of Custodia Financial institution, reveals that the BTC worth ought to have hit someplace shut to 6 figures within the earlier cycle. In an interview with Robert Breedlove’s “What Is Cash” podcast, Lengthy reveals that “paper bitcoin” has created a fake supply of BTC.
The 21 Million Lure
Bitcoin’s restricted provide is one in all its most bullish options. Its shortage makes BTC extra worthwhile than Gold and different conventional shares. In an interview with CNBC, Thomas Farley, the previous president of the New York Inventory Change, pointed to Bitcoin’s restricted provide as an necessary characteristic. He believes that this property makes BTC essential in a single’s portfolio.
There can solely ever be 21 million Bitcoin.
Nonetheless, as Lengthy explains, the financialization of Bitcoin could make its restricted provide irrelevant. In response to her, paper Bitcoin or IOU are assembly actual demand with faux provide. An IOU is a promissory be aware, which acknowledges debt.
Lengthy reveals that if all of the IOU is mixed, the whole quantity of BTC promised to folks is greater than the Bitcoin obtainable immediately. Greater than 19.1 million Bitcoin have been mined as of now.
Lengthy factors out that the intermediaries and financialization of Bitcoin are a menace to the value of BTC.
Not Your Keys, Not your Bitcoin
Caitlin Lengthy questions the intent and the position of intermediaries within the BTC buying and selling market. She reveals that she additionally was as soon as a consumer of crypto exchanges. Lengthy discovered her lesson after the Mt. Gox hack that central intermediaries are usually not reliable. She believes that self-custody is the best way to go.
Lengthy believes that a whole lot of leverage is current available in the market. Whereas the March 2020 market crash because of the pandemic flushed out a whole lot of the leverage, it construct proper again up. In response to her, the continuing deleveraging which is forcing many huge crypto exchanges to go bankrupt is driving the newest iteration of panic.
