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The paper Bitcoin market exists because it is profitable to arbitrage the gap between paper price and physical scarcity. The more paper claims exist relative to real BTC, the more fragile the system becomes. Self-custody is the mechanism that forces convergence. When enough holders remove supply from the system, the paper games face a liquidity crisis on the underlying. The suits can play games with synthetic exposure indefinitely — until they cannot deliver the real thing.

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this dream of everyone demanding physical is something the gold bugs have wished for decades. it never comes close to happening. most of the paper in the bitcoin system can never be redeemed for bitcoin, so there is no "calling it in". the millions of people around the world who hold the "physical bitcoin" etfs have NO right to call it in and ask for the underlying. so there is 0 risk to the custodians. if they want to sell tons of paper bitcoin (well beyond the 21M cap), they can, as long as they hedge the price exposure in dollars as all they will ever owe to their customers is dollars.
@ODELL we’ve had over a decade to self custody. What % of the individuals that have a large number of Bitcoin in self custody have sold and added supply to the “system”? More than you think the people on here claiming to be “HODLERS” have all sold a % to fund their lifestyles. Is that greed? No, it’s human nature. We all want to live a better life with the short amount of time we have here. Bitcoin will always be sold for a profit, even by the “Diamond Hands” influencers that are preaching and driving Bitcoin’s advancement. Tell me I’m wrong or send me 1Million Sats 😊 @walker @preston @Marty Bent @HODL @jack mallers