Aug. 8, 2025
Paper Bitcoin: The Hidden Risk No One’s Talking About
In this episode of The Bitcoin Effect, we take a deep dive into the hidden risks of “Paper Bitcoin” — claims to Bitcoin that aren’t backed by actual BTC on the blockchain. From historical parallels to the U.S. dollar’s separation from gold in 1971 to modern custody risks, we’ll explore how over-leveraging and re-hypothecation can undermine the very principles Bitcoin was built on.
We’ll also look at why these risks matter even to self-custodied Bitcoiners, how exchanges and financial products can unintentionally (or intentionally) create unbacked Bitcoin exposure, and what lessons we can draw from past financial crises.
If you value clear, no-hype Bitcoin content, hit like so more people can understand Bitcoin better.
#Bitcoin #PaperBitcoin #BTC #SoundMoney #BitcoinEducation #BitcoinEffect #BitcoinNews #BitcoinCommunity #HODL #SelfCustody #BitcoinHistory #BitcoinRisks
Follow & Support
Website: thebitcoineffect.io
Twitter/X: @_Nate_Martin
We’ll also look at why these risks matter even to self-custodied Bitcoiners, how exchanges and financial products can unintentionally (or intentionally) create unbacked Bitcoin exposure, and what lessons we can draw from past financial crises.
If you value clear, no-hype Bitcoin content, hit like so more people can understand Bitcoin better.
#Bitcoin #PaperBitcoin #BTC #SoundMoney #BitcoinEducation #BitcoinEffect #BitcoinNews #BitcoinCommunity #HODL #SelfCustody #BitcoinHistory #BitcoinRisks
Follow & Support
Website: thebitcoineffect.io
Twitter/X: @_Nate_Martin
