mike on Nostr: In my day, Internet bandwidth was contended, i.e. we sold more bandwidth than we had ...

In my day, Internet bandwidth was contended, i.e. we sold more bandwidth than we had available because we knew that not everybody would be using their full bandwidth at the same time. That made bandwidth affordable.

Contention ratios were both an art and science and sometimes we got them wrong.

Institutional Bitcoin WILL eventually be contended (rehypothecated), the same as gold or shares are today.

There are people that own gold on paper and there are people that own physical gold in their safes.

We don't want paper Bitcoin, but it's going to happen and has already happened with exchange collapses like FTX.

You own gold if you have a safe with gold in it, you own Bitcoin if you hold the keys for it.

Everything else is trust.

You don't need to trust if you own the keys.

If you wish to borrow against your Bitcoin, you HAVE to trust that your lender won't use your Bitcoin while it is in their custody.

Your comfort level for trust is your personal choice.