Listened to a handful of pods on #Bitcoin ETFs and curious why nobody is talking about the potential for serious reduction in BTC velocity? With the halvening hitting, if multiple funds gobble up remaining liquid supply and start chipping into whale holdings, between those trusts and others holding that don't use/sell, it seems velocity trends downward drastically. What consequences does this usher in?
Discussion
Take that as my personal point of view and not the absolute truth:
As liquidity shrink and demand increase the value of #Bitcoin in fiat terms will reach a point where these entities will have great benefit for use it or sell it. If you hold something that increase forever in value, your greed will kick in at some point for use it and benefit
For this to be possible, we must continue to build usefull and meaningful service on #Bitcoin
I wonder if you mean volume instead of velocity here. This might also be more accurately referred to as liquid supply.
Volume, too, but I was more thinking of the circular economy aspect of BTC. If everyone is "saving" including ETFs locking away massive stacks in their trusts, does it make P2P/D2D usage even more scarce? Does BTC just become a savings/investment vehicle? This is also why I've wished BTC would appreciate more before these companies come in because their monopoly money wouldn't go as far.
You could make an argument that BTC price will normalize on spot price, discounting those locked up in paper BTC arrangement
I think such entities cannot accept holdings without yield. To get yield from Bitcoin, they must lend it or lock it in the Lightning Network.
Inside LN, is velocity limited?
Was it nostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z that did a pod on LN yield, or nostr:npub1r8l06leee9kjlam0slmky7h8j9zme9ca32erypgqtyu6t2gnhshs3jx5dk ?