Recently, some have worried that Strategy’s “digital credit” products such as STRC could create “paper Bitcoin” and weigh on $BTC ’s price gains. Saylor fired back: STRC raised funds to buy 21,021 bitcoins—investors buy preferred shares, Strategy buys bitcoin, and more capital flows into bitcoin, while the 21 million coin cap remains unchanged.
He also noted that declining compound annual growth rates are a sign of an asset maturing, not proof of fiat currency manipulation. Bitcoin’s volatility has fallen from 150% to 50% since 2018. K33’s head of research said that cash-settled contracts account for only about 2% of bitcoin’s circulating supply.
However, analyst Luke Gromen warned that most derivatives are cash-settled rather than physically delivered, and that this warrants caution.
#Bitcoin #BTC #Crypto
(Source: AMBCrypto)
He also noted that declining compound annual growth rates are a sign of an asset maturing, not proof of fiat currency manipulation. Bitcoin’s volatility has fallen from 150% to 50% since 2018. K33’s head of research said that cash-settled contracts account for only about 2% of bitcoin’s circulating supply.
However, analyst Luke Gromen warned that most derivatives are cash-settled rather than physically delivered, and that this warrants caution.
#Bitcoin #BTC #Crypto
(Source: AMBCrypto)