Excerpt
I discuss the potential for inflation in the context of “paper Bitcoin,” especially as it relates to Bitcoin ETFs like those recently launched in the U.S. by major corporations. I express concerns about the lack of transparency and centralization within these corporations, pointing out that they could issue more certificates than they own bitcoin, artificially inflating the market. Learn why I will always favor the original bitcoin on the Bitcoin blockchain.
Transcript
Of course if we have something like paper bitcoin then that can be inflated. Now, in recent months, the first Bitcoin ETFs have been started, in the US mostly. And a Bitcoin ETF is issued by a company, by a corporation like BlackRock or Fidelity or what their name might be. So nobody really knows what’s going on there. It’s a centralized corporation, it’s intransparent, it’s not like built in open-source code like Bitcoin. So, of course, these corporations could sell more certificates of bitcoin or paper bitcoin than there are and this of course is a problem because especially for the people who only hold paper, worthless paper in their hands, and in a way, yes, it can also keep the price or the value of bitcoin lower because people basically buy something and buying of these paper bitcoin doesn’t have a real effect on the supply of bitcoin, so it has effects that no one really wants. Mostly not those people who are buying this paper bitcoin and so for me, I would never ever buy a Bitcoin ETF or a certificate like that because I don’t believe really in the security of these tools. I much more trust the Bitcoin blockchain and the code and the community because everything is built open, everything is transparent, and no one can inflate the bitcoin supply which is guaranteed by the rules in Bitcoin. Yeah, like we have rules without rulers in Bitcoin like Andreas Antonopoulos always said and with certificates you have rulers who have their own rules. I mean they should follow their standards and in principle also banks should always give you your money but sometimes you might be censured by the government because you maybe are from the opposition or whatever. So I trust Bitcoin, I trust in mathematics, and open-source code. So I believe it can be inflated and it will be one day.
