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35 sats \ 3 replies \ @Cje95 18 Sep \ on: The World’s Top Reserve Currencies in 2024 | When Bitcoin ? charts_and_numbers
Something I think we need to think about is how there are two different ideas that can't be grouped together yet people try to. In order to have BTC be the world reserve currency the liquidity of it would have to skyrocket. This would though run counter to HODLers who are focusing on stacking and not spending. If BTC is the digital gold that people think and thus HODL it then it never will become the world reserve currency since it would be limiting.
Gold isn't the world's reserve currency and never will be so applying that here the two things cannot coexist as it currently stands.
Bitcoin has been very successfully redefined by the legacy fiat brokers (bankers and governments) as a speculative commodity, Not a MoE.
The ETFs take this further embedding increased institutional custody and decreasing the volume available for use as a P2P MoE.
If ETFs gain enough market cap they could then implement the 'final solution' banning private custody- as a speculative commodity why would people even need a private custody they will assert...
Bitcoin is already hugely captured and controlled by this subtle but cunning and effective strategy of recharacterising it as a speculative commodity and not a MoE.
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I agree that ETFs have allowed for institutional custody to skyrocket zapping up supply which is why I no longer see the world currency status being capable. However, I do not see how a 'final solution' of banning private custody would or could take place. Miners need as many transactions as they can so as long as they mine I don't see how ETFs could surplant the numerous transactions we see from individuals.
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The narrative that Bitcoin is a speculative SoV commodity is already overwhelming.
If the ETFs and other institutional custody capture the majority of Bitcoin issued then the trope of money laundering and protecting us from terrorists blablabla could be trotted out to justify a ban on private custody. The ETF fund operators are also investing significantly in Bitcoin mining operations which themselves are now highly, some would say dangerously concentrated into a few pools. I hope it does not happen, and it may not, but it is where their already implemented strategic redefinition of Bitcoin logically ends up. It would cachieve the complete capture and control of Bitcoin, from a real threat to fiat monopoly to a harmless speculative commodity plaything managed entirely via the custody of the bankers for the proles.
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