Lots of talks, rumors & different opinions about this. So you must be dying to find out what my views are on this 😉

Let’s dive right in.

Bitcoin is for everyone

The first question is, do I actually care who buys Bitcoin and who doesn’t?

The short answer is: no. Of course not. Bitcoin is a decentralized new form of global & neutral money. The whole point (& beauty) of it is that is does not discriminate or exclude anyone!

So yes, huge financial institutions like Blackrock, Vanguard & Fidelity are also allowed to buy Bitcoin. Of course I see the point die hard Bitcoiners are trying to make that it comes along with some challenges but let’s be real here.

If Bitcoin is not able to live up to its promise of becoming a global, electronic peer to peer, cash system solely because big players from the “old” financial system are trying to adapt to it then it was never going to happen in the first place anyway. I mean, what did you expect?

That they would not try to kill it?
And that if they can’t beat it, that they would not try to change it?
And if that doesn’t work, that they would not try to control it or centralize the shit out of it?

Of course!! That is literally what they do! How to maintain a powerful position? Centralize.
So yes, they are going to make “financial instruments” (securities) which basically leads to “paper Bitcoin”. Just like they did to gold. Just like they’ve always done.

In the end, if Bitcoin turns out to be what I believe it is, this won’t be a problem at all.
A challenge? Yes. But not a problem that won’t be fixed.

Gold SPOT ETF

Firstly, when the GOLD Spot ETF came into existence in November 2004 (ticker: GLD), the spot price of Gold did somewhere around a 5 X in 5/6 years. I mean, if that doesn’t get you excited I don’t know what will. So, the positive part if you are a Bitcoiner, it will pump your bags.

But of course, and I hear you thinking, that’s not the reason why I am into Bitcoin. Sure. I feel you.
Me neither. But this type of price action will again create a new bull market and will again attract lots and lots (and lots) of new individuals, institutions and perhaps even more countries. In other words: significant growth in global adoption.

Yes, also speculators.

But, like always, after that “global attention” forms a new bubble and inevitably bursts, the speculators leave and the “real ones” stay put. The base layer of “long term HODLERS” will definitely grow because of this and will, again, make Bitcoin stronger. I do believe however that the next boom & bust cycle is going to be unlike anything we’ve ever seen. So, before you “get in”, make sure you are educated so you know what’s up when things start to get messy.

Paper Bitcoin

The biggest worry of most Bitcoiners is that the Blackrocks of this world probably want to create “paper Bitcoin” without actually buying the real Bitcoins and place them on their balance sheet. The worry is that they sell more Bitcoin to their customers than they actually have in their possession just like banks do with your money and like these institutions did to gold. This usually leads to downwards pressure on the real price of the asset.
The reason why I am not too worried about that is because they will easily get exposed. Bitcoin is a public ledger on which everything is easily verifiable. In other words, if they sell more paper Bitcoin than they buy the real Bitcoin, we will notice it eventually. Perhaps not right away because FTX was also able to manipulate Bitcoin’s price and was able to keep it down for a few months to a year by selling fake Bitcoins to newbies. But, in the end, they always blow up. And I don’t think Blackrock or Vanguard wants to be associated with an event like that.

24/7 blocks are being created, checked & confirmed by the network itself. Tick Tock, next block. Next to that, analysts all around the world are constantly checking the price, supply, demand, transactions and what not. It will get noticed and so will not work in the end. That’s why it’s more like a challenge than a real problem like it was with gold. Gold is way more difficult to check up on since it’s physical whereas Bitcoin is digital.

Bringing things together

I suggest you study Bitcoin. Once you’ve decided to actually buy, store & transact with it, make sure to enjoy the ride. It’s going to be a heavy & hectic ride, but an interesting ride nonetheless. Bitcoin is magic, it’s the real deal. But it is still in its price discovery phase. This global adoption phase that we are facing is exactly what we want. What Bitcoin needs in order to become peer to peer electronic money for everyone. More money coming in means higher market capitalization and so more stable prices in the future. It simply has to happen.

Will they try to find a way to destroy it? Probably. But that shouldn’t worry us. If anything, it should force us to prepare now so that when it happens, we are stronger than before. More educated than ever. Let’s make sure that everyone who comes into the Bitcoin space because of these institutions, instantly learn about the big differences between real Bitcoin and “paper Bitcoin”. Also, learn them the “why” behind cold storage because if anything bad happens due to these institutions, it will happen to them. To the people who don’t realize how big the risks are for not owning Bitcoin themselves and how big the risks are when trusting these institutions as counterparties.

Let the institutions buy the “paper Bitcoin”. As long as you buy the real deal, it’s not your problem.
In the meantime, let’s do the hard work that’s necessary to keep these institutions honest with regard to Bitcoin.

The end.

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