Caitlin Lengthy, the founder and CEO of Custodia Financial institution, reveals that the BTC worth ought to have hit someplace shut to 6 figures within the earlier cycle. In an interview with Robert Breedlove’s “What Is Cash” podcast, Lengthy reveals that “paper bitcoin” has created a fake supply of BTC.
The 21 Million Lure
Bitcoin’s restricted provide is one among its most bullish options. Its shortage makes BTC extra invaluable than Gold and different conventional shares. In an interview with CNBC, Thomas Farley, the previous president of the New York Inventory Alternate, pointed to Bitcoin’s restricted provide as an necessary function. He believes that this property makes BTC a must have in a single’s portfolio.
There can solely ever be 21 million Bitcoin.
Nevertheless, as Lengthy explains, the financialization of Bitcoin could make its restricted provide irrelevant. In line with her, paper Bitcoin or IOU are assembly actual demand with pretend provide. An IOU is a promissory notice, which acknowledges debt.
Lengthy reveals that if all of the IOU is mixed, the entire quantity of BTC promised to individuals is greater than the Bitcoin out there in the present day. Greater than 19.1 million Bitcoin have been mined as of now.
Lengthy factors out that the intermediaries and financialization of Bitcoin are a risk to the value of BTC.
Not Your Keys, Not your Bitcoin
Caitlin Lengthy questions the intent and the function of intermediaries within the BTC buying and selling market. She reveals that she additionally was as soon as a person of crypto exchanges. Lengthy discovered her lesson after the Mt. Gox hack that central intermediaries will not be reliable. She believes that self-custody is the way in which to go.
Lengthy believes that a whole lot of leverage is current available in the market. Whereas the March 2020 market crash because of the pandemic flushed out a whole lot of the leverage, it construct proper again up. In line with her, the continuing deleveraging which is forcing many large crypto exchanges to go bankrupt is driving the newest iteration of panic.
The introduced content material might embody the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability in your private monetary loss.