oh good question. I think it would be when Bitcoin is the base currency of the world.
similar to when gold backed the pound and dollar and many other currencies.
like the free banking era but on Bitcoin standard.
everyone is free to accept whatever they want but harder money (Bitcoin) would most likely naturally be preferred.
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I agree with that. So the end goal is Bitcoin as the base money where everyone is using bitcoin peer to peer. In your opinion, does a Bitcoin ETF actually get us to that world where bitcoin is the base layer and everyone uses it p2p? Keep in mind that a Bitcoin ETF is a honeypot for governments to confiscate.
speaking from a US based perspective. absolutely it helps us by tapping into corporate and Boomer wealth that would otherwise not go through the auditing and technical risk of self custody.
we have factories for cars, iPhones, and we watch reap the benefits of cost savings.
the ETFs are factoies for converting wealth at scale to Bitcoin.
without ETFs this Bitcoin as a base layer could be delayed 20 years until more tech savvy millennials run the ship.
All you explained was how the ETFs would funnel money into bitcoin from corporations and boomers. That would make the NGU for sure. But you said nothing about how that leads to bitcoin as the base layer of money where people are using it p2p instead of fiat. The ETFs are great for NGU, but not necessarily for hyper bitcoinization.
as far as I understand, it's important for that market cap to keep increasing which results in number go up.
It's hard to envision a world where NGD in any currency, unless a government gets really good at budgeting and technology just rips our faces off.
ComponentGlobal Wealth (Approx.)Bitcoin Layer/Protocol comparisonM1 Money Supply$35.2 trillionBitcoin Lightning Network, Aqua, etc. other crypto/company issued tokens (starbucks rewards)M2 Money Supply$95.7 trillionBitcoin Base Layer (BTC) + ETFsReal Estate$280.6 trillionETFsStock Markets$89.5 trillionCompanies with BTC on balance sheet
To swallow all this, it looks like it has to go up to a very big market cap.
trying again with this table
Component Global Wealth (Approx.) Bitcoin Layer/Protocol
M1 Money Supply $35.2 trillion Bitcoin Lightning Network, Aqua, starbucks rewards,etc.
M2 Money Supply $95.7 trillion Bitcoin Base Layer (BTC)+ ETFs
Real Estate $280.6 trillion ETFs
Stock Markets $89.5 trillion Companies with BTC balance sheets
You keep giving me numbers and talking about money supply and market caps. What does that have to do with hyper bitcoinization? How does the government or blackrock taking custody of all this bitcoin help us reach hyperbitcoinization faster?
Using legal structures are efficient just like we don't build our own hardware wallets and computer OS.
The beauty with Bitcoin is that it is so easy to self-custody that a company/individual/entity in a country where they distrust the regime could make that decision for themselves.
Or in the USA, if no one likes the results of the election, the ETFs could be sold as self-custody could be bought. And that can happen overnight or in anticipation of any event.
It's a risk/benefit analysis and it's a different calculation for each entity, jurisdiction, time.
i'm sorry @MAHDOOD , i know i'm just repeating Saylor talking points that you've heard a million times, but it's better to get it out here than at home.
THanks for listening to someone honing their skills and sorry I'm trying to get better at understanding the ACTUAL question instead of the question that I want to answer.
Oh, so the idea is for Bitcoin to swallow the next biggest fish in the pond, it needs to grow a little and swallow all the fishes that are smaller than it.
ETFs might be like putting the fish on some growth hormone to make the process go just a little faster...
it may sound risky =) and legal structures are always subject disruption by to war.
My opinion is it's worth trying at least. (Sorry fishes)
