Caitlin Long, the founder and CEO of Custodia Bank, 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 Money” podcast, Long reveals that “paper bitcoin” has created a fake supply of BTC.
The 21 Million Trap
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 Stock Exchange, 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.
However, as Long explains, the financialization of Bitcoin could make its restricted provide irrelevant. According to her, paper Bitcoin or IOU are assembly actual demand with pretend provide. An IOU is a promissory be aware, which acknowledges debt.
Long reveals that if all of the IOU is mixed, the full quantity of BTC promised to individuals is greater than the Bitcoin obtainable in the present day. More than 19.1 million Bitcoin have been mined as of now.
Long factors out that the intermediaries and financialization of Bitcoin are a risk to the value of BTC.
Not Your Keys, Not your Bitcoin
Caitlin Long questions the intent and the function of intermediaries within the BTC buying and selling market. She reveals that she additionally was as soon as a person of crypto exchanges. Long realized her lesson after the Mt. Gox hack that central intermediaries will not be reliable. She believes that self-custody is the way in which to go.
Long believes that numerous leverage is current out there. While the March 2020 market crash because of the pandemic flushed out numerous the leverage, it construct proper again up. According to her, the continued deleveraging which is forcing many big crypto exchanges to go bankrupt is driving the newest iteration of panic.
The introduced content material might embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty to your private monetary loss.
