Did you know the ratio of Paper Gold to real metal is 100 to 1? Governments are selling gold futures contracts to keep the gold price down. Most precious metal futures are cash settled, so they never have to deliver the real gold.
Since central banks have access to infinite money, they can literally print any amount of fiat and use that to depress the price of gold.
This is the same playbook they will use to depress #bitcoinβs price
What is the ratio of BTC to paper BTC today? I think it pretty high as well.
Probably as high as goldβs
Weβre on the same wavelength my friend. Blackrock pushed me over the edge.
FTX created 80,000 paper #bitcoin, thatβs roughly 25% of all mined #bitcoin in a year. Who knows how much Binance and other exchanges printed? π€·π»ββοΈ
So many places people can βbuy BTCβ as well but never be able to actually take ownership. Sofi is one example. Whatβs the fractional reserve percentage those places are using? Do they even need to own the underlying asset? I donβt know the answer but Iβm sure itβs not 1-1. Investors own the BTC price to βtradeβ; thatβs 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 theyβre lucky enough to avoid the eventual rug & run on the bank. The door narrows quickly once the bluff gets called. Iβm looking at you Coinbase & Binanceπ
Interesting π€
They get away with this due to the dificulty of storing and moving large amounts of gold. Bitcoin is much easier to move and store. There is no advantage to holding paper bitcoin vs real bitcoin, so why would you accept paper bitcoin? Some people will fall for it, but they will get rekd, just like FTX, Celcius, MtGox, etc. I'm predicting that the dollar will finally die when legacy financial institutions fail due to trying to fractional reserve Bitcoin. It will happen quickly, just like Silicone Valley Bank.
