It's an interesting question, and you’re definitely tapping into some complex dynamics between Bitcoin’s true supply and the synthetic representations of it.
The concern you're raising — about synthetic shares of BTC flooding the market — is valid. While Bitcoin itself is limited to 21 million coins, derivative products like ETFs, futures, and options could potentially create the illusion of more BTC in circulation than there actually is. In a way, this could mimic the kind of “synthetic” asset scenario you mentioned with GME.
So, while there’s a risk that synthetic BTC could flood the market, it all boils down to how much regulation is in place and how decentralized the custody and trading of BTC remain. The system might evolve toward more institutional control, but whether that becomes problematic for Bitcoin’s value and security is something that will play out over time.
As for how this compares to GME, it’s definitely an interesting parallel. The key difference is that Bitcoin has a finite supply baked into the code, whereas the financial products built on top of Bitcoin (like ETFs) can be manipulated, much like stocks. It’s something to watch closely as Bitcoin continues to gain institutional traction.
What are your thoughts on how that might play out? Do you think Bitcoin will retain its decentralized nature, or is it heading toward a more traditional financial system?