Yes. Him saying this is a distraction is a distraction
Of course paper Bitcoin is a problem but has far far lower risk than in Gold because its much easier to verify.
Bitcoin is much easier to self hodl and to transact freely peer to peer.
Discussion
It’s more nuanced than this. nostr:nprofile1qqsrzm5ta57f3jrhvyyrcrh2vck3amfkhz4pnsw8uq404r7g4wsqfjspr3mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmqpzfmhxue69uhhqatjwpkx2urpvuhx2ucd7y6jz has written extensively on the subject. Maybe check this article out: https://controlplanecapital.com/p/what-most-bitcoiners-are-wrong-about
The tldr is that the state is quietly domesticating Bitcoin via wrappers and rate limits, and most Bitcoiners aren’t paying any attention.