“Paper Bitcoin”. You’ve probably heard that term being thrown around here and there. Put simply, paper Bitcoin refers to investments that provide indirect exposure to real Bitcoin, such as futures, ETFs, and even balances held on exchanges.
But here’s where things get spicy: many believe that there’s more paper bitcoin than real BTC backing it, with some making allegations like BlackRock not actually backing its ETFs with Bitcoin, Michael Saylor not actually buying billions in BTC, and even exchanges not having enough BTC to honor withdrawals.
Meanwhile, other critics say paper Bitcoin has an outsized influence on BTC’s price action, meaning it plays a huge role in market conditions.. So today, we’re diving deep into paper Bitcoin, telling you what it is, and how it could impact BTC’s price as it becomes more common.
Credit to : Coin Bureau