Institutions bought 900 Bitcoin per day for 23 months straight – twice what miners produce – and now control 6% of total supply, but one behavior stops them from forking Bitcoin into their own system, and it’s the opposite of hodling.
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NEXT VIDEO (What Bitcoin is actually building):
TIMESTAMPS:
0:00 – Institutions buying 2x mining
0:44 – Why this terrifies me
1:09 – Two stories people misunderstand
2:12 – Spend and replace
3:09 – Prague reality check
3:49 – Three simple tips
5:30 – Gresham’s law explained
6:13 – The tax reframe
8:45 – The threat
10:01 – How to stop the threat
11:04 – The 2.5-10% who won’t cheat
13:20 – Your choice
RESOURCES
Bitcoin Corporate Holdings:
BlackRock IBIT Holdings:
Simon Dixon on Circular Economy:
BTC Map (Find Merchants):
Jeff Booth – World Game Podcast:
Strike App (Live on Bitcoin Standard):
UK Capital Gains Tax Allowance:
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31 Comments
I’ve had the same comment a few times so I clearly did a bad job of explaining this in the video. Here’s the key point I was trying to make…
The point I was trying to make was if EVERYONE buys “bitcoin” on exchanges or ETFs then NOBODY would run a node or self custody themselves. Meaning that whenever a fork happens the few people that do run a node that moves bitcoin around (who actually own the bitcoin) get to decide the rules or the version to follow- remember not all nodes are equal otherwise a bad actor could just whip up a few million nodes and then choose whatever rules they want, it’s “economic” nodes that matter the most (I hope that makes sense)
Where and how do i buy bitcoin and how do i use it
SH1TC OIN
You can hold as much bitcoin as you like. No country is really considering to use it. And any trial will collapse before it starts because it will slow down their economy. There's no economical value with bitcoin.
Owning the majority of coins does nothing.
I think you are missing a key point.
Bitcoin operates on a “proof of work.” if anyone was to own 51% of all Bitcoin, they do NOT get 51% vote when deciding on forks. the nodes, and nodes alone, decide on forks. what you are describing is a “proof of stake” system, Ethereum operates on this principle but Bitcoin does not.
How does owning most of the bitcoin allow you to fork? Its the nodes that choose the fork not bitcoin owners. Blackrock don't own the nodes, they dont even control a node as they are custodied with coinbase so I think you have got this part wrong
I love your videos, you do a phenomenal job! I have a question… So should we use base layer bitocoin, or lightning, because lightning has no hashrate (hence, watchtowes are needed) and it also can't be put in cold storage 🙁
I dislike that the medium of exchange function is exported to a network that rugs miners… Lightning feels like an Alt-coin
Am i crazy for thinking this??
I only want to use base layer bitcoin but everyone only accepts lightning 🙁
The Alt-coin lightning has adoption
Bitcoin doesn't have adoption
What are your thoughts 🤔
Another very good video mate. Sadly in Australia it is pretty much impossible to spend Bitcoin, but I certainly hope this changes.
8:32 The amount of BTC owned does not determine the influence of whether or not Bitcoin is forked. The only way a fork can be done is by consensus of node runners which are decentralized world wide and definitely not all run by BlackRock or any other institution. What you're saying here makes no sense.
Fiat is just not quite broken enough yet in the developed world. Patience. We all know inflation is not going anywhere. I expect most business will get a weird look if they don’t accept bitcoin in a 5 years time
I came across your channel and watched several videos. Just wanted to let you know that I think you're doing a great job and you are an asset to the bitcoin community. Keep it up brother.
Run Knots and stack sats 💪🏼
I like this channel because it has unique and well thought-out exposition.
Facts.
your tax explanation is very confusing I think it needs to be clear that you pay tax on profit so if you out £10 into bitcoin and spend £10 there is a breakeven effect, it would be £3k over what you out in, right?
was a bit unclear what you can do in the UK compared to USA… be worth being clearer on that.
Without a circular economy – Bitcoin will be captured. It's worse than gold because it's an open ledger. Spend your Bitcoin to buy goods and services people. Excellent video mate!
Bro appears to have Bitcoin confused with proof of stake coins. The amount that Blackrock owns has nothing to do with consensus forks. It’s nodes and miners that decide. Completely and utterly divorced from what percentage of supply any one entity holds. Sure there might be some political clout but that claim is fundamentally incorrect.
I don't know where you get the fantasy that there can still be adoption growth through some network effect, because merchants already tried it a decade ago and it failed miserably with $10+ fees so most merchants dropped it permanently and now most merchants don't even think about trying it anymore.
Choosing BTC payment over fiat actually hurts the network, if everyone did that the fees would be $100 in no time again. It's not designed for every day payments, it's for darknet and billionaires. If you want near free payments regardless of demand you need to move it over to an unbounded version of Bitcoin.
Not really sure that having a big bitcoin stack can really help with bitcoin forks but seems interesting
There's no difference because If I spent that same 10 thousand dollars in cash, and it was either earned income, or investment income, I would still be liable for the same $289.00 in taxes owed, depending on the gains source. As you can see this claim that using Bitcoin to purchase causes more taxes owed is completely false and I want the record set straight.
Hello, Please explain to people that even if they use cash to purchase items, instead of Bitcoin, they still will use money that they either had to have already paid taxes on (W2 income) or, they will, at tax time. It is no different. With Bitcoin you can spend and replenish with a currency that goes up in value so there is no comparison. I hope I am making sense but here is another way of looking at it. Suppose I am invested in a stock that keeps going higher in value and I need some cash so I sell some of it to fund what I'm wanting to do, I will have to pay taxes on it also. There is absolutely no difference except Bitcoin is a far superior currency and you would be supporting your future freedom and not supporting a system that debases your currency.
Excellent !
every tiny little sat today will be worth untold amounts of money later
no WAY am I parting with a single one
ever
borrow against it – sure
but trade it for filthy fiat??
pfft!
Institutions can fork Bitcoin anytime — but those forks will fail because no one will accept them. The fear is unfounded. Still, running your own node matters, because it ensures you verify the real Bitcoin and never follow a fake one
Gonna run a node next year!
Not keeping stuff on non-custodial if not temporarily. Most of them are on ym custodial, the biggest pile in a cold wallet, rest in a custodial on my phone that support lightning too.
Bitcoiners spent in the early days then the SOV small blockers took over. Now Bitcoin base layer is a ghost town
I love it! Great video as always! Keep them coming…👍
I agree with you, but it’s a mental block from the “double tax” conundrum that many struggle with. You pay tax on the money you earn to buy the bitcoin, and then you pay tax again when you spend your bitcoin. Yup, inflation (true inflation) melts the purchasing power of fiat currency at a rate, over a long time horizon, that is worse than when you get “double taxed” while spending your bitcoin, but thats the sell that needs to be shouted around the world. Additionally, you have to track and report all your spent bitcoin transactions, which many fear. I’m not sure if that applies to the pre 3000 pound tax exemption model in the UK, but my guess is that it does. In the US we don’t get any pre-spend tax exemption for spending bitcoin, but hopefully that will change in the near future. Everyone does have the option to mine bitcoin or acquire it using non-KYC methods (like paying cash for it) to avoid the payroll tax side of things, but many wont, or for whatever reason, cannot do that. Nevertheless, my opinion is to put a strategy together that treats bitcoin as 2 buckets, one for savings (in cold storage) and one for spending from a non-custodial mobile wallet that is capable of making lightning transactions. Lastly, run a node to support the bitcoin network and increase your privacy. Great video!