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RE: BITCOIN: S.E.C decision to reject the Bitcoin ETF proposal is great news for Bitcoin.
If I wanted a billion in gold in hand, I would need to find someone willing to sell 1 million in gold today, again tomorrow and every day after that for just shy of 3 years. The price of gold would be impacted (then brought down by the paper market).
If I wanted a billion in bitcoin in hand, I would need to find someone willing to sell 1 million in bitoin today, again tomorrow and every day after that for just shy of 3 years. The price of bitcoin would be impacted.
Now there is no paper bitcoin market to manipulate the price down - ie; an ETF
I'm a little confused. In the second part you say "If I wanted a billion in bitcoin in hand, I would need to find someone willing to sell 1 million in gold today,". I don't quite understand that. Stephen
And good luck finding the first million dollars worth of bitcoin for sale the first day, let alone the second, third...
It was a typo. But, I am saying "Physical" bitcoin as opposed to a hypothetical ETF bitcoin.
There are actually contracts, margins and essentially "Shorting" and "Puts" being ordered on Bitfinex (I used to loan my btc out) - so there are bitcoins being traded that don't exist. In other words, there are bets being made on the price without physical delivery going on. But, if it were done on a grand scale on Wall Street, the price would be manipulated to the same extent as gold and silver are today.
Thanks for catching my error!
Ahh. That makes sense now. Have a great weekend. Stephen