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No-coiners fail to realize how difficult and time-consuming it is to build a large, self-custodied Bitcoin stack, even if you have a lot of fiat to work with. Here’s why —

Most centralized exchanges have withdraw limits of a few thousand dollars per day. And most peer to peer exchanges offer relatively small amounts of BTC for sale at any given time. For these reasons, you can’t instantly convert $1M of fiat bank assets into $1M of BTC in cold storage. Most no-coiners seem to think they’ll be able to when the time comes.

The reality of these limitations will become painfully obvious once faith in fiat evaporates in earnest, and everyone rushes for the orange exits at the same time.

Tick tock. #Bitcoin

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Discussion

no₿ody™ 🧱 2y ago

This is why there’s no such thing as nocoiners, only precoiners

sillystev 2y ago

Love that optimism!

no₿ody™ 🧱 2y ago

Actually i totally missed alan’s point, the latest precoiners are gonna have a bad time 😂

sillystev 2y ago

Haha oh snap!! Gotta help while we can 😎

no₿ody™ 🧱 2y ago

Tbf though it is known, albeit by Few™️, that this is the best time to be alive. Late precoiners will just have to earn it

sillystev 2y ago

That is what I think we will be saying to our grandkids!

Cameri🐦‍🔥 2y ago

Nocoiners are precoiners that died

sillystev 2y ago

Followed you! This is such a great post and I agree ⚡️

BackTo2009 2y ago

#[0]

dr.fred 2y ago

why do you think the banks do that?

there is always a way to send larger amounts and there are exchanges which accept it

ChewyBTC 2y ago

Because Bitcoin will be banks undoing

SirGalahodl 2y ago

The bank already looks at me funny when I try to send $600 "to a friend". Only a matter of time before they shut that down.

noderunner 2y ago

Not to mention building a non-KYC stack.

Anchorite 2y ago

You don't think there will be an accessible exchange without a withdraw limit?

jeremy viola 2y ago

It is actually strikingly difficult to market buy relatively large sums at a time.. first, on-ramp from a fiat bank is a pain in the ass, with immediate suspicious questioning and stealth reporting to the IRS

Then there’s going through KYC on a CEX

Then you need to withdraw from said exchange to a cold wallet

Edward Lightninghands 2y ago

Excellent point, Alan.

Beyond the logistical difficulty of actually securing purchased BTC in cold storage, I think no-coiners are in for a surprise when it comes to real liquidity.

When the rush to the orange exit starts, of course CEXs will sell any amount of (paper) Bitcoin people are willing to buy. But the FTX and Co. events over the past year have cast significant doubt on any CEX’s trustworthiness when it comes to redeeming that claim on BTC (i.e. withdrawing into self-custody).

It is highly likely that there will be a “bank run”-type failure among CEXs, and many desperate buyers will unfortunately be short-changed or even entirely swindled by unscrupulous CEXs.

Add to that the extreme conviction of the average Hodler, then the question to ask is where a massive quantity of REAL (i.e. not paper) BTC will come from when a huge influx of new capital occurs.

My suspicion is that liquidity will be very thin in this situation, meaning the BTC price will skyrocket as new buyers are desperate to get their hands on some at any price.

This highlights the importance of:

1) Getting off zero, and

2) Staying humble and stacking sats

“Gradually, Then Suddenly” is prophetic.

h/t #[2] #[3] & Parker Lewis (among many other Bitcoin thought leaders)