FTX created 80,000 paper #bitcoin, that’s roughly 25% of all mined #bitcoin in a year. Who knows how much Binance and other exchanges printed? 🤷🏻♂️
Discussion
So many places people can “buy BTC” as well but never be able to actually take ownership. Sofi is one example. What’s the fractional reserve percentage those places are using? Do they even need to own the underlying asset? I don’t know the answer but I’m sure it’s not 1-1. Investors own the BTC price to “trade”; that’s it. Confusing for many.
Also, we only found out about the paper BTC at FTX once the tide went out and people started withdrawing. FTX & exchanges at least allow people to own the asset if they’re lucky enough to avoid the eventual rug & run on the bank. The door narrows quickly once the bluff gets called. I’m looking at you Coinbase & Binance👀