There are millions if bitcoin investors who never use the bitcoin network. It would be intresting to see how much Binance and Coinbase wallets alone contributes to the illusion of wide spread bitcoin adoption by moving IOU's around.
Discussion
That’s the Achilles heel of bitcoin too. People think they own bitcoin but they don’t. When it’s time and they try to move from custodian wallet to self manage, it’ll feel like a tedious task with real concerns of total loss of their wealth. It’s one uphill battle which might be a huge problem for crypto adoption without custodians.
Yes, but this will eventually be resolved by a run on the paper bitcoin mills.
The problem with paper is who’s going to be entrusted to print the exact amount of paper for bitcoin? Counterfeit currency?
I use paper bitcoin is an aphorism for IOU's. Not literal paper bitcoin currency. Anyway there is the concept of proof of reserves but those schemes are hard to get institutions to adopt and get right so we are left with bank runs, forced liquidations and bankruptcy as corrective measures against paper bitcoin inflation.