As long as #bitcoin is available to trade on the exchanges, its price will be suppressed.
We will see the actual value of #Bitcoin when everything else is traded against it, it starts with energy first and then everything else.
0 sats \ 0 replies \ @co574 1 Mar
the denominator is irrelevant
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0 sats \ 2 replies \ @DiedOnTitan 1 Mar
Yes, but only when it is rehypothecated and only to the extent of the percentage of bitcoin on exchanges vs cold wallets.
(flips over envelope) So if 20% of bitcoin is on exchanges and 20% of that bitcoin is fraudulently rehypothecated, then the level of price suppression is ~4%.
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0 sats \ 1 reply \ @BhavikBitcoin OP 1 Mar
Rehypothecation will not be sustainable in a world of Bitcoin. Everything will be open and it will easy to track. But 4-5% price suppression looks okay even then.
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0 sats \ 0 replies \ @DiedOnTitan 1 Mar
To your earlier point, Bitcoin on exchanges that do not make their wallet IDs known can rehypothecate, and some will. It's inevitable. But it will be limited, which is my point.
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