Excellent point, Alan.
Beyond the logistical difficulty of actually securing purchased BTC in cold storage, I think no-coiners are in for a surprise when it comes to real liquidity.
When the rush to the orange exit starts, of course CEXs will sell any amount of (paper) Bitcoin people are willing to buy. But the FTX and Co. events over the past year have cast significant doubt on any CEX’s trustworthiness when it comes to redeeming that claim on BTC (i.e. withdrawing into self-custody).
It is highly likely that there will be a “bank run”-type failure among CEXs, and many desperate buyers will unfortunately be short-changed or even entirely swindled by unscrupulous CEXs.
Add to that the extreme conviction of the average Hodler, then the question to ask is where a massive quantity of REAL (i.e. not paper) BTC will come from when a huge influx of new capital occurs.
My suspicion is that liquidity will be very thin in this situation, meaning the BTC price will skyrocket as new buyers are desperate to get their hands on some at any price.
This highlights the importance of:
1) Getting off zero, and
2) Staying humble and stacking sats
“Gradually, Then Suddenly” is prophetic.
h/t fossgregfoss (npub1zry…8vpd) ODELL (npub1qny…95gx) & Parker Lewis (among many other Bitcoin thought leaders)
EdwardDiamondhands / Edward Lightninghands
npub1kh…r6twl
2023-03-01 22:41:07
in reply to nevent1q…dy24
Author Public Key
npub1khgg4g4qaswewjx8rt5eyfu3mzs9nsn7n3va45829q2txldnldvqdr6twlPublished at
2023-03-01 22:41:07Event JSON
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"content": "Excellent point, Alan.\n\nBeyond the logistical difficulty of actually securing purchased BTC in cold storage, I think no-coiners are in for a surprise when it comes to real liquidity.\n\nWhen the rush to the orange exit starts, of course CEXs will sell any amount of (paper) Bitcoin people are willing to buy. But the FTX and Co. events over the past year have cast significant doubt on any CEX’s trustworthiness when it comes to redeeming that claim on BTC (i.e. withdrawing into self-custody).\n\nIt is highly likely that there will be a “bank run”-type failure among CEXs, and many desperate buyers will unfortunately be short-changed or even entirely swindled by unscrupulous CEXs.\n\nAdd to that the extreme conviction of the average Hodler, then the question to ask is where a massive quantity of REAL (i.e. not paper) BTC will come from when a huge influx of new capital occurs.\n\nMy suspicion is that liquidity will be very thin in this situation, meaning the BTC price will skyrocket as new buyers are desperate to get their hands on some at any price.\n\nThis highlights the importance of:\n1) Getting off zero, and\n2) Staying humble and stacking sats\n\n“Gradually, Then Suddenly” is prophetic.\n\nh/t #[2] #[3] \u0026 Parker Lewis (among many other Bitcoin thought leaders)",
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