Caitlin Lengthy, the founder and CEO of Custodia Financial institution, reveals that the BTC value 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 Entice
Bitcoin’s restricted provide is considered one of 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 Trade, pointed to Bitcoin’s restricted provide as an essential characteristic. He believes that this property makes BTC essential in a single’s portfolio.
There can solely ever be 21 million Bitcoin.
Nonetheless, as Lengthy explains, the financialization of Bitcoin could make its restricted provide irrelevant. In keeping with her, paper Bitcoin or IOU are assembly actual demand with pretend provide. An IOU is a promissory observe, which acknowledges debt.
Lengthy reveals that if all of the IOU is mixed, the full quantity of BTC promised to individuals is greater than the Bitcoin accessible at present. Greater than 19.1 million Bitcoin have been mined as of now.
Lengthy factors out that the intermediaries and financialization of Bitcoin are a menace to the value of BTC.
Not Your Keys, Not your Bitcoin
Caitlin Lengthy questions the intent and the position of intermediaries within the BTC buying and selling market. She reveals that she additionally was as soon as a consumer of crypto exchanges. Lengthy realized her lesson after the Mt. Gox hack that central intermediaries aren’t reliable. She believes that self-custody is the best way to go.
Lengthy believes that loads of leverage is current available in the market. Whereas the March 2020 market crash because of the pandemic flushed out loads of the leverage, it construct proper again up. In keeping with her, the continued deleveraging which is forcing many large crypto exchanges to go bankrupt is driving the most recent 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.