Custodia BankCaitlin Long, the founder and CEO of Bitcoin, stated that the price of Bitcoin should have a six-digit price along with the previous cycle. Long explained his views on Robert Breedlove’s podcast “What Is Money” and claimed that a fake BTC supply was created in the markets.
21 Million Traps in Bitcoin
bitcoin‘s limited supply stands out as one of its strongest features. Its scarcity is an important detail that makes BTC more valuable than Gold and other traditional stocks. New York Stock Exchange In an interview with CNBC, former chairman Thomas Farley even mentioned the importance of Bitcoin by reminding its limited supply. Most of the investors continue to invest due to the limited supply.
And it should not be forgotten that “there can only be 21 million Bitcoins.”
However, according to Long’s explanation, the financialization of Bitcoin could render its limited supply irrelevant. According to Long, the paper Bitcoin, or IOU, is meeting real demand with fake supply. It refers to the IOU, that is, debt securities.
Long underlined that if all debt securities are combined, the total amount of BTC promised to people is more than Bitcoin available today. As a footnote, over 19.1 million Bitcoins have now been mined.
Long, on the other hand, thinks that Bitcoin’s intermediaries and financialization are a threat to the BTC price in this whole equation. Caitlin Long also questioned the intent and role of intermediaries in the BTC trading market.
Stating that he was once a user of crypto exchanges, Long thinks he learned his lesson after the hack that centralized intermediaries are not reliable.
Long concludes by pointing out that there is too much leverage in the market. Although the market crash due to the pandemic in March 2020 removed most of the leverage, it immediately started to recover. According to him, the ongoing leverage reduction that has forced many major crypto exchanges to go bankrupt is triggering the latest iteration of panic.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.