Post
Topic
Board Speculation
Merits 2 from 2 users
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
Hueristic
on 22/07/2025, 17:00:01 UTC
⭐ Merited by vapourminer (1) ,psycodad (1)
Actually the bolded is untrue, just as all derivative markets DO affect the overall market cap and remove the scarcity aspect of the underlying asset.
But the bank that holds no bitcoin reserves does not interact with the bitcoin market, and thus, when it sells a "wrapped bitcoin", it doesn't suppress the price in any way.  Whoever takes the promise just plays against the house. 

If I am looking to buy something like gold lets say and instead I buy a gold certificate then the gold I was going to buy never hits the market and increases that cap, this is no different.