snapo on Nostr: Anyone have a guess what he means with "Before the ammount of outstanding Bitcoin ...
Anyone have a guess what he means with "Before the ammount of outstanding Bitcoin will create a systemic risk"
My take from this is he talks about derivativs (options, futures, paper bitcoin), as soon as too manu Bitcoin leave the exchanges, at some point the derivatives will disconnect from the spot price. Think of it this way: you have a promise to pay 10m Bitcoin by the end of 2027, but there are now only 9m Bitcoin available. This means the price in "fiat" terms can reach unlimited or that derivative product defaults. That means if Central Banks do not want to risk their fiat system, they are FORCED to adopt Bitcoin, because sooner or later they will not be able to buy any with fiat, no matter how much they print because the price is "unlimited". At this point derivative trading isnt possible anymore and all derivative products on bitcoin would default.
What is your take on his statement?
https://twitter.com/DocumentingBTC/status/1629899770268450817
My take from this is he talks about derivativs (options, futures, paper bitcoin), as soon as too manu Bitcoin leave the exchanges, at some point the derivatives will disconnect from the spot price. Think of it this way: you have a promise to pay 10m Bitcoin by the end of 2027, but there are now only 9m Bitcoin available. This means the price in "fiat" terms can reach unlimited or that derivative product defaults. That means if Central Banks do not want to risk their fiat system, they are FORCED to adopt Bitcoin, because sooner or later they will not be able to buy any with fiat, no matter how much they print because the price is "unlimited". At this point derivative trading isnt possible anymore and all derivative products on bitcoin would default.
What is your take on his statement?
https://twitter.com/DocumentingBTC/status/1629899770268450817