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238 sats \ 2 replies \ @siggy47 15 Jan \ on: We need to drain OTC desks. They are turning BTC into paper bitcoin_beginners
None of your advice is bad, but there is less bitcoin on exchanges than ever. I can't imagine there's a lot of wrapped bitcoin being used in staking in 2024, but maybe I'm ignorant in the ways of the shitcoiner.
OTC bitcoin trading is just peer to peer transacting between big players. It has always existed, and always will.
Most people on SN are practicing self custody, but your post is a good lesson for bitcoin beginners.
The bitcoin that is wrapped can be lent even if not in staking, after all the underlying btc is held by the exchange and the proof of reserve is just a number they put on their website and an once in a while audit. WBTC is claimed to wrap $6B alone, BTCB is $2B.
The bitcoin on exchanges is also just the amount of btc held by the known addresses, we have no way to know how many other addresses are actually owned by OTC desks or exchanges.
What are the big players that are selling BTC at a discount to blackrock while simultaneously dumping the market?
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I'm sure your information is accurate. No doubt the big players are engaging in this price manipulation. Personally I have been railing against futures and spot ETFS for as long as I can remember. Before there were bitcoin ETFs of any kind whales were playing similar games amongst themselves. That being said, I don't worry about NGU, and snap up the cheap sats with the big boys when the price crashes.
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