The #Bitcoin fundamentals of four generations of inflation, entitlements, and regulations are separate and apart from #Bitcoin the technological innovation. If we had sound money there would be little demand for Bitcoin. (1/13)

The notion that gold futures hold down the physical gold price or subjects the gold price to long-term manipulation is a canard. CME gold futures deliveries are settled with warrants meeting exact specifications met by approved refineries, carriers, and warehouses which (2/13)
ensures the integrity of delivery apart from the exchange. https://t.co/CpV1OBSsAT One need look no further than the 1980 Hunt Silver fiasco which illustrates how deliverable futures contracts provide for the discovery of an untapped silver supply resting in people's homes.(3/13)
Not so for Bitcoin. The CME Bakkt Bitcoin contract is for Bakkt Bitcoin. It is not Bitcoin. Bakkt Bitcoin is a cash-settled monthly futures contract. While the Bakkt Bitcoin has geographically storage of private keys, they are not your private keys. (4/13)
Not your keys, not your bitcoin. The Bitcoin Warehouse is an internal ledger The internal ledger operates separate and apart from the Bitcoin blockchain. The only interaction with the public blockchain is during the deposit of bitcoin into the Bakkt Warehouse and the (5/13)
withdrawal of bitcoin out of the Bakkt Warehouse to meet the Bakkt Bitcoin (USD) settled futures. Unlike gold, there is no procedure or mechanism to transfer Bitcoin from the Bakkt Warehouse private key to a private key apart from the Bakkt Warehouse. (6/13)
The challenge outlined by Black Rock and the undeliverable cash-settled CME futures exposes the current obstacles and risks of on-and-off-ramps on all legacy platforms. @PrestonPhysh and others have recognized these risks and they are likely to have quite the opposite effect.7/13
The obstacles were recently outlined by institutional buyer @michael_saylor Because Bitcoin, the innovation, has a fixed supply and negative stock-to-flow it is unlikely Bitcoin futures will ever be made deliverable to private keys. Acquiring sound money is not easy. (8/13)
Nor should it be. If you really think Bitcoin, the innovation, is like any other asset I don't know what to tell you. However, your challenge does expose a genuine threat and challenge for Bitcoin. Confiscation exposure on all legacy platforms. (9/13) https://t.co/fzJ9JdxsdR
The March bailout is the canary in the coal mine. What can be deposited on a whim can be confiscated on a whim. Moreover, those pioneers who have genuinely contributed to sound money through non-legacy unregulated Bitcoin innovation such as @Bitmex are subject to (10/13)
Soviet-style persecution by three initial regulators with guns like the SEC, DOJ, and FBI. The difference between now and then is Bitcoin, the innovation, has allowed Bitmex to operate with full functionality even while the principle founders are under arrest or on the lam. 11/13
If the authorities could shut down #Bitcoin or #Bitmex it would be a fait accompli. The case for a relatively smooth transition to sound money, ie. the future for #Bitcoin is in the hands of HODLers with their own private keys. (12/13)
If we are to be our own banks, we must relearn The Lost Art Of Commercial Banking. (13/13)
https://t.co/czO3Tctv0I

More from Bitcoin

1/THREAD: WHEN WAS IT CLEAR?

Oct. 8, 2020: The purpose of this thread is to document and timestamp when it first became clear that #Bitcoin was likely to become a major reserve asset for public corporations, and eventually states, with Square's purchase of $50M in BTC.

The purpose is to give something to cite when ppl later claim "But there was NO WAY OF KNOWING..."

h/t @ErikSTownsend who used the same format to call out the impact of Covid on Feb 8 and made me personally aware of the looming shutdown of the country
https://t.co/opuiNgSeqC !


Bitcoiners smarter than me have been predicting the takeover of the dollar by Bitcoin for many years.

In 2014 with Bitcoin barely at $1B, @pierre_rochard wrote https://t.co/EGHa58KqHq, covering all the incorrect narratives of Bitcoin and stating it will overtake the dollar.

"[skeptics] misunderstand how strong currencies like bitcoin overtake weak currencies like the dollar: it is through speculative attacks and currency crises caused by investors, not through the careful evaluation of tech journalists and 'mainstream consumers'" - @pierre_rochard

I first became bullish on Bitcoin in the summer of 2016, around a $3B market cap, but it was still a toy project at that time in the eyes of most in the financial world, while many technologists thought of it as a v1 technology to be improved on.
I will be a buyer under 13800 levels, but depending upon the reversal on smaller timeframe.

You May Also Like

These 10 threads will teach you more than reading 100 books

Five billionaires share their top lessons on startups, life and entrepreneurship (1/10)


10 competitive advantages that will trump talent (2/10)


Some harsh truths you probably don’t want to hear (3/10)


10 significant lies you’re told about the world (4/10)