Beware of the Bitcoin ETF.

Thanks to Kim DotCom we now know that Bitcoin maximalists are government symphathizers and that they believe that if they work with the government the government in turn will not ban or declare Bitcoin illegal and probably they are expecting a reward from the government for their effects to make Bitcoin more friendly thresh the government and all its institutions that surround it.

Bitcoin Lightning Network feels and smells like government central planning plans because they are trying to solve the issue of scalability by promising something that is fundamentally broken, if one transaction on the Bitcoin network is already expensive let's make it as twice as expensive as a solution. To use LN you need to open a channel and reserve the fee in case you decide to close it, and even if you don't close your channel, as on-chain fees increase that reserve fee will increase in your LN channel to the point where your channel liquidity is not even worth the closing channel fee. If you have an LN channel worth 0.003 but the current transaction fee is equal to that same 0.003 BTC your channel is worthless. Leave it to government sympathizers or I could even add infiltrated government agents either voluntary or involuntary to fix the Bitcoin problem by twice the issue you had in the first place.

Centralized exchanges had a hand in making the current version of Bitcoin BTC recognized as such because they gave the ticker to Bitcoin Core and force Bitcoin Cash to take the BCH ticker and add Cash to differentiate the two assets. Now an arm of the government is trying to take down both Coinbase and Gemini claiming they were selling securities, not even the SEC itself can agree on what is a security but they say clear regulations are in place, and as such Coinbase and Binance must be sacrifice. The devil pays badly to those who work well for him.

If the plan is to remove control away from the people and sent them back to centralized parties that are part of the government an ETF may just help bring that goal much closer. And removing those who rejected the original peer-to-peer vision by scaling on-chain may just get their just reward, a prison sentence at worst and probably a business closure at best.

As more users come to try to use Bitcoin they will discover that they can't pay the transaction fees, you can ask anyone outside the 7 riches countries if they feel like paying $2 or more for a transaction fee feels like if they were using Bitcoin or just another Western Union with a different name. Even a whole nation has been brainwashed to use PayPal/government sponsor bank account called ChivoWallet which is not a wallet nor it is Bitcoin. The minimum wage in El Salvador is around $10 to $12 a day, getting your own LN channel may cost you some $5 just in fees if not more. How the impoverished population of El Salvador can afford to hold their private keys with those fees?

Poor people will be forced to use custodians which is the final result, and now if you have money you will invest your money into an EFT that will hold your satoshis for you and you will have to ask for permission to spend them. Once BlackRock has enough supply they will be able to manipulate the price of Bitcoin and probably even implement ample reserve practices just like banks because no one will be able to afford the withdrawal fees nor they will let you.

The Bitcoin maximalist will be happy because at least for them they will manage to sell their Bitcoin to BlackRock for a high price but once their children and grandchildren grow up they will end up working for a Bitcoin that can be printed out of thin air because only BlackRock will have the real asset.

You may think that the solution will be to not sell but that is just naive because at some point in the future people will accept Bitcoin emitted by BlackRock as the real deal, and will probably reject you if you hold the real Bitcoin because one they won't like to pay the high fees, or because they fear those coins are tainted does forcing you to exchange by going to the source of the fiat liquidity BlackRock.

BlackRock for sure has ties with the government if the goal of the government is to control the supply of Bitcoin you can bet they will print the money and give it to BlackRock to accomplish their goal, and it is not like the government hasn't done it before. The Federal Reserve is supposed to be fighting inflation but when the banks were failing they sure went right away and rescue them by printing money out of thin air, once again, just that they called it differently this time around.

Once the government orders the central bank to print money to buy Bitcoin to control it you can bet they will hide from the public or outright do it in plain sight just called it by a different name and the people will be happy with the answer just as they were with the answer they got when bailing out the failing banks.

You can't have a bank run if the money is digital with no paper form existing, you can't have a Bitcoin bank run if the place where you buy is a custodian and the place where you save it is also another custodian, and you can't have a Bitcoin bank run if the people trying to run don't have the money to pay for the transaction cost to exit the bank hostile takeover.