physical bitcoin should have a significant premium compared to paper bitcoin

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YES FOR FUCK SAKE. how many exchanges have to collapse before they figure this out?

It should.

Right now you can buy real UTxOs for the same price as paper Bitcoin promises.

Act appropriately.

Thing is this requires people to understand the difference. Unfortunately, I think for that to happen...

Physical gold, too. Apparently many think they are holding gold certificates to this day.

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So if paper BTC are "backed by real BTC", people need to understand that repeatability is key. They don't and they don't care.