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The Paper Bitcoin ATTACK Explained! | Beyond Bitcoin · Simply Bitcoin

• 0:03
  After all this time, I finally did it.
• 0:08
  I cracked the code. I could have been able to do it
• 0:12
  for years, but now I finally understand.
• 0:17
  Unlimited paper Bitcoin. Pick up all the lambos.
• 0:22
  I can buy my own ranch in Texas. BlackRock just accelerated the
• 0:38
  $2.3 million paper Bitcoin attack with this next move.
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  The heck is paper Bitcoin? Paper Bitcoin has any claim of
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  Bitcoin that isn't settled on chain.
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  So we're talking about Bitcoin ETFs, Bitcoin stock plays,
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  exchange balances, cash settled futures.
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  The CME alone has 680 K of outstanding Bitcoin claims that
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  are all IOU. So that just goes to show you
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  that when everyone wants to claim that Bitcoin, maybe it
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  won't be there. I'm sure you all know this
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  because you watch the news all the time.
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  But Blackrock's Bitcoin ETF, I bet, became the fastest one in
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  history to smash the $70 billion assets under management.
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  Retail rush the gates. But institutions, they're still
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  sniffing the upholstery. Still sniffing the upholstery
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  like I'm a dog. Why?
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  Maybe they smell a certain paper issue.
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  Check this out. Oh.
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  Check this. Out.
• 1:50
  That's enough. What the Pulse said.
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  Please. The Black Rock Wealth Advisor
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  came out and said this on live television today, which I
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  thought was very interesting. So listen on closely to what he
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  had to say about the ETF and passing that 70 billion in
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  assets. The adoption by wealth advisors.
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  I'm curious how far along you think we are in that.
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  Are we in the early innings? Are we in the middle innings?
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  Are we, you know, I don't think we're in the 8th or 9th inning,
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  but you know, where would you put it at?
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  Very early. I think that what we've seen is
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  a concerted effort by most of the largest firms to progress
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  through their diligence and their research and their
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  approval process. But as you all know for new ETFs
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  it's typically a multi year journey to get any sort of
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  approval. We've seen that fast tracked by
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  a number of firms. So we talked about fast
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  tracking. We're talking about, you know,
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  quarters, not not months. Paper Bitcoin is a hot topic
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  right now, and if BlackRock is posting huge cash inflows in
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  exchange for Bitcoin, then they have a responsibility to their
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  shareholders to hold that Bitcoin securely.
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  Or rather, Coinbase has that responsibility.
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  But there's an incy weensy little tiny hiccup brewing.
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  What if Coinbase isn't actually holding the coins that they say
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  they are? What if it's all made-up on
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  their books? Like on paper, Like paper
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  Bitcoin? This potential paper Bitcoin
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  attack that Coinbase could be in cahoots with everybody with
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  Coinbase essentially addressed this since Ryan Armstrong came
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  out and said, hey, trust me, bro, we're going to be all
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  right. We're actually holding all of
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  this. You don't got to worry about
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  anything. But when we're looking at the
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  amount of Bitcoin that Coinbase has, it's extremely, extremely
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  alarming when we have Coinbase, you know, essentially having
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  eight of the 11 Bitcoin ETFs. And Coinbase essentially just
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  recently had a major, major hack under its realm.
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  This news comes as another eyebrow raise happening under
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  the Coinbase umbrella as recent as the moment in which you are
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  watching me say these words. Michael Saylor of MicroStrategy
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  Strategy Strategy was asked at the 2025 Bitcoin conference if
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  this company Strategy would consider publishing their
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  Bitcoin reserves. His answer will shock you and
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  then you may have to go to the hospital because of all the
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  shock you experience after watching this clip.
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  So much shock. Hey Mr. Taylor, a huge fan of
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  everything you've done. Does Strategy have any plans to
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  publish their on chain proof of reserves?
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  Yeah, proof of reserve. It's an interesting thing.
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  Let me make the following point. A lot of people learn stuff from
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  FTS to Mount Gox, but I'm not sure they learned the things
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  that the institutional community needs to learn going forward the
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  way that the current conventional way to publish
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  proof of reserves is an insecure.
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  Proof. Of reserves, it actually, it
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  actually dilutes the security of the issuer, the custodians, the
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  exchanges and the investors. It's not a good idea.
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  It's a bad idea. It's like publishing the address
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  and and the bank accounts of all your kids and your phone numbers
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  of all your kids and then thinking somehow that makes your
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  family better. It doesn't make your family
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  better. Shocked.
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  Thought so. In a post game recap, Mitchell
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  Hoddle, who initially asked the question to Saylor, had this to
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  say. So I'm a micro strategy
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  shareholder. Strategy.
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  Strategy shareholder and the two reasons Sailor gave for why they
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  don't plan to implement proof of reserves and this he gave 2
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  points. His first point was that it's
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  unsecure. It's it's a bad security
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  practice, which I disagree with but I'll come back to it.
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  His second point is that proof of reserves without audited
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  liabilities doesn't benefit you and that I agree with doesn't
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  matter. You can, you know, show a
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  Bitcoin on chain address, but if you don't know what liabilities
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  the company has, if those aren't audited, it really doesn't give
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  you a whole lot of information. But on the first point, I mean,
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  we've seen Metaplanet and River published their Bitcoin on chain
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  addresses. And you know, obviously
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  Satoshi's addresses are out there.
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  So I'm not sure I entirely agree with that.
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  And before I even asked Saylor this question, he spoke for for
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  multiple minutes about how one of the benefits of strategy, one
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  of the things that makes them super successful is their
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  transparency. So whether you want to long the
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  equity, short the equity, long the options, sell the ball,
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  whatever you want to do, however you want to interface with
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  strategy to get Bitcoin exposure.
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  You know, Michael Saylor, because he's been saying the
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  same thing about Bitcoin over and over for 4 1/2 years.
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  You know, he's not going to switch his tune.
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  And so that transparency gives investors confidence in their
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  that their position is going to get rug pulled in the sense
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  that, you know, you go short MSTR because you want a short
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  Bitcoin and then say all of a sudden is like, hey, actually
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  we're not doing anything with Bitcoin at all.
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  So you don't want that. And this is the point he was
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  making. And so as a shareholder of MSTR
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  to me to, to reach the full extent of transparency would be
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  to publish your on chain addresses.
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  And obviously, you know, you can't doing that.
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  We, we can't take it. It's not like, you know, from an
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  individual standpoint, you wouldn't want to publish your on
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  chain addresses, right? Because if you send the Bitcoin,
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  if you spend some, you know, you don't want people to track and
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  see how much Bitcoin you have, But strategy is already being
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  public with how much Bitcoin they have.
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  And it's not sailors personal Bitcoin stash.
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  It belongs to the strategy shareholders, right?
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  So I don't necessarily agree with that point, but I'm going
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  to continue to hold MSTR. Again, I'm a huge fan of Sailor
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  and I think they're one of the most important companies in the
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  world. But as a shareholder, I would
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  love to see proof of reserves. But I also understand, you know,
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  I, I'm not as smart as Sailor. So, you know, let him leave the
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  company. He's done great so far.
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  They're up over 1000% since they got on the Bitcoin standard.
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  So I trust his vision and I'm going to continue to hold some
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  MSTR. After seeing this clip, I've
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  decided not to post my own Bitcoin address of 43,677
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  Bitcoin for security reasons. It's there.
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  Trust me bro, I don't have anything to prove to you.
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  Now let's say that I didn't have 43,337, I mean 43,677 Bitcoin
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  that I claim I do. How would I go about making
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  everyone believe that I did? But before I go to that.
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  After these messages, we'll be right back.
• 8:32
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• 9:15
  Ledger says that everyone is covered. 3 price rallies because
• 9:19
  NGU is inevitable brah. But then the whales come up for
• 9:23
  air and request a payout. Uh oh.
• 9:26
  But the most devious part of my hypothetical plan #4 stage and
• 9:31
  exchange hack. State seizures are implemented
• 9:34
  for your safety which creates A liquidity crunch #5 shred all
• 9:39
  documents and burn them. I mean do do this with your
• 9:43
  hands. What do you think?
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  Do you think strategy should be posting their on chain addresses
• 9:47
  and sort of clear up the air about this paper Bitcoin?
• 9:50
  Let us know in the comments below.
• 9:52
  If you like what you're looking at.
• 9:55
  Let us know in the comments below.
• 9:57
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• 10:10
  But real quick, if you're anything like me, are you
• 10:12
  thinking about building out your own sovereignty stack?
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• 10:21
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