Nostr

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?

radii 2y ago

I wonder if you mean volume instead of velocity here. This might also be more accurately referred to as liquid supply.

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Discussion

Svoboda 2y ago

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.

radii 2y ago

You could make an argument that BTC price will normalize on spot price, discounting those locked up in paper BTC arrangement