I don't see your point. If they own everything, I don't think Bitcoin will change this.
Discussion
When the cost of capital is higher because bitcoin is setting the risk free rate, large companies (like BlackRock) cannot sit on assets that don’t generate the returns needed to deliver their cost of capital to shareholders.
These large organizations will sell assets to buy bitcoin. The price these assets are sold for will reflect discounting cash flows using bitcoin’s appreciation rate. The buyers of those assets will have the knowledge to make the assets generate more value than their prior owners.
The implications of bitcoin to “public markets” as we know them today is massive, absolutely massive.
you are describing a mega threat to national security as we are but a big organization of corporations. if something on earth or in cyberspace existed that could have such an impact. would be worse than covid. no?
The coming bitcoin adoption will be a massive reallocation of capital.
Many of the “assets” we have today only have value because our discount rate has been so low for so long. Too many apartment complexes, too many restaurants, too many gyms, too many windmills…too much “entertainment,” too many apps…
This is because for the last 20 years, economic models were run assuming zombie terminal growth rates of 3-5% and discount rates of 6% … capital was allocated to projects that never contemplated a parallel system emerging with a discount rate of 12% … and that’s once we have complete adoption of Bitcoin.
Between now and a “bitcoin standard”, the annual appreciation of bitcoin’s value is going to be much, much higher (50+%). People will sell their stock to buy bitcoin. People will sell their 2nd homes to buy bitcoin. People will downsize their primary home to buy bitcoin. Who will be the buyer of these other assets?
Bitcoiners understand bitcoin is the best asset to hold…for example, will a bitcoiner part with bitcoin for a large mansion with high maintenance costs. No, so the price of the mansion will fall…and fall.
This same dynamic will happen with corporate equities. In order to keep investors, companies will buy bitcoin. But in order to buy bitcoin, they’ll have to sell their non-productive assets.
Yes, adoption of a bitcoin standard will be very disruptive to the status quo of modern “economics”. Yet it is inevitable … good in the long-run but the unwind will be chaotic and there will be losers. A less cynical view of the State is that “it” is merely trying to coordinate a “smooth” transition to our next economic paradigm.
Savings and prudence rather than spending and consumption. The disruption is good for mankind but there will be a period of transition.
Still you haven't convinced me. From my point of view BlackRock will act as a giant "black hole" which will sell everything for Bitcoin and people will sooner or later sell their coins for the stuff BlackRock's companies are making. BlackRock will just have more and more Bitcoin with its unlimited Fiat founding by cheap credits too. Everyone has a positive time-preference. BlackRock just needs to be patient and either with its ETF or by their companies, they will suck in all the Bitcoin, just like with the current Fiat system. To make BlackRock fail it must be a miracle because people needs to stop selling their Bitcoin at any price it will in the future have, which won't happen because of the previously mentioned positive time-preference. Everyone has a selling point... everyone...
Okay. We’ll see!