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112

I just heard ceo of Robin Hood get asked if, at 5:11 am, they had the 3 trillion to cover the gap. They said no. This is the same as owning paper silver. If there’s a run/squeeze, you’ll just be holding worthless paper. How about with Bitcoin? Say you buy through PayPal or cashapp. Could the same thing happen? Or is it different because Bitcoin is already an “intangible” asset? I’m asking because I am actually retarded.

I just heard ceo of Robin Hood get asked if, at 5:11 am, they had the 3 trillion to cover the gap. They said no. This is the same as owning paper silver. If there’s a run/squeeze, you’ll just be holding worthless paper. How about with Bitcoin? Say you buy through PayPal or cashapp. Could the same thing happen? Or is it different because Bitcoin is already an “intangible” asset? I’m asking because I am actually retarded.

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[–] 0 pt

Ya. I calculated it on the first run up a few years ago. It was about a 3% ratio. Meaning if 3% of btc were dumped at once there wouldnt be enough to cover it all.

But you might want to look up the term “fractional reserve” before getting all mad at btc.

[–] 1 pt

How is btc fractionally reserved? When you buy it you own the digital wallet and digital coins.

[–] 0 pt

The little coin called Tether.

If tether didn’t exist, btc wouldn’t be above $2k.

It’s not btc that’s fractional, it’s the tether. At about 3% ratio.

Meaning there is about 30x more Tether to buy BTC with than actual dollars.

Meaning if people want actual dollars (not T, can’t really spend T on your mortgage) there’s only so many, and they’re all held at Coinbase.

[–] 2 pts

Huh. Somebody made a coin that can buy more coins than it actually bought?

Coinbase ain't only bank

[–] 1 pt

Tether's market cap is far too low to move bitcoin any more. That argument no longer works.

Also, Tether is not just listed on Coinbase.