The general theme was that as paper bitcoin increase(etfs,dats etc)
They are not bitcoins, not paper bitcoins. bitcoins are bitcoins and there are nothing tries to have pegs, equivalence to bitcoins are bitcoins. Wrapped Bitcoin, Bitcoin Spot ETF shares are all not bitcoins.
there will be less circulating bitcoin and thus transactions fees will be impacted negatively. It sounds plausible, I’m a bit stuck on the a holder is a holder no matter where they are self custody or third party, but do you think this will have cause transactions to drop off over time as more adoption happens on the paper side?
Adoption comes from realization of people on Bitcoin value, then they invest money in bitcoins, use bitcoins, and more. Transaction fees are only one part of Bitcoin miner income, another part is from Bitcoin block subsidy and some intelligent miners can be long term Bitcoin investors too so they will have benefit from Bitcoin adoption growth, price growth. It will not only cover drop of their income from transaction fee but even can help them earning more profit from passive income in holding part of their bitcoins received from mining.