First of all this isn’t an original idea, I read something somewhere and will definitely go pull the source. The general theme was that as paper bitcoin increase(etfs,dats etc) 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?
A Bitcoin ETF is very different from Bitcoin itself. Bitcoin ETFs aren't actually owned by their buyers or even investors don't even need a wallet. And this goes against the Not Your Keys Not Your Bitcoin concept. Bitcoin ETFs have a time limit for trading. And this is very different from the original Bitcoin concept, wehere everyone could trade Bitcoin at any time. So I personally prefer the original Bitcoin concept, where everyone has real Bitcoin and can trade at any time without any restrictions. Therefore I don't think this Bitcoin ETF deserves to be considered part of Bitcoin. Although it's said that every Bitcoin has an underlying asset held in cold storage by a leading global digital asset custodian (
Source). I have no interest in it at all. And I think most people who understand Bitcoin's origins will also avoid it. Therefore I don't think it will have an impact on the decline in transactions. People will consider owning real Bitcoin rather than risking it on something that isn't real.