Thread - Nostr Hypermedia

Coinbase has MSTR’s approval to fractional reserve the MSTR bitcoin stack. If MSTR has 250k bitcoin custodied with Coinbase, Coinbase can fractional reserve up to 150k of those coins, knowing that MSTR’s entire strategy is holding indefinitely. Coinbase custodies most of the ETFs and MSTR … they have 2M+ bitcoins custodied. More important than 10%+ of the total supply, it is more than the TOTAL remaining issuance of the bitcoin protocol. They can 100% use a small float to manage (or create) market volatility.

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Replies (2)

BoomTown 9 months ago

The specific numbers are obviously unknown (which is a problem). But total global annual issuance during this epoch is ~165k bitcoin. So it is clear that 50k bitcoin here and there can really impact the expected purchasing power of bitcoin. Show me the incentive and I’ll show you the outcome. Every power structure in the world is trying to at least SLOW DOWN bitcoin and bitcoin adoption (especially among individuals). This is an EASY way to accomplish that objective.

michael 9 months ago

well shit. is Coinbase’s ability to fractional reserve MSTR stack conjecture or verified?

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