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0 sats \ 3 replies \ @mallardshead 21 Sep 2023 \ on: "Paper BTC" Is Counteracting A Bullish Bitcoin Supply Shock, Analyst Explains bitcoin
No clue what constitutes "Paper BTC" as it isn't explained, but I'll assume the NgU accelerationist Willy Woo means futures, which are not "paper btc" because futures are 1:1 commodity credit, for every buyer there's a seller. If futures didn't exist then, Mr. Woo posits there would be a "supply shock" and sharply higher BTC price. Yeah no, I think the bitcoin distribution schedule and FedFunds rate would have something to say about the viability of such a price.
As far as I know crypto futures are contracts between two investors who bet on a cryptocurrency's future price. This gives individuals exposure without actually purchasing them. Sorry for any ignorance, but I hope this gives more insight into the perspective of the article.
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I'm not questioning you, but Willy Woo and his prediction-charting game. While it's true that futures bettors don't have ownership of the asset, they wouldn't have engaged in longterm ownership of the asset if the futures products didn't exist. They're after liquid price exposure. This is the game of leverage, futures, and HFT trading. The supply shock Woo talks about is something that will come about through longterm hodling, the distribution schedule reduction (halving), more BTC locked into LN channels, and monetary expansion of the USD through falling rates and stimulus.
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Its kinda fun watching people try to predict bitcoin price. Just because people can sound so smart and be so wrong. But its not even close to as much fun as watching establishment people say bitcoin is dead or a scam and then change their mind :) and then change it again when it goes down. Exposes so many people who have so much unearned prestige.
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