My Thoughts On The Bitcoin (Cryptocurrency) ETF
This week saw the SEC turn down the opportunity to allow a Bitcoin ETF to form. A ruling in favor would allow institutions to start buying into cryptocurrency (Bitcoin in this instance) using the ETF model. The fact the SEC did not approve it means that the majority of Wall Street money is left on the sidelines.
My views on this subject are clear. Inviting Wall Street in is like bringing the wolf to the hen house. People are quick to point to the money which, of course, sets the greed gene in motion. We all know when the institutions do arrive, it will be a wild party. They will drive the price of everything up in an insane way. That is what Wall Street does. I expect the boom to surpass the dotcom bubble two decades ago. Of course, another characteristic of Wall Street is the busts. And that is where people get hurt.
They will arrive nonetheless.
What is amazing to me, and the real point of this article, is the nerve on the SEC. The fact they have not allowed people equal access to cryptocurrencies shows how they are just part of an agenda. Their lame excuses about protecting people from getting hurt is asinine. They oversee enterprises that are the biggest crooks on this planet.
Did you see anyone at the SEC stand up and say that perhaps we should move to have Well Fargo removed from eligibility to be held in ETFs. Personally, there is a bigger risk of losing money in that bank than in Bitcoin. Actually, the difference is one loses money in Bitcoin, With Well Fargo, the money is stolen. Over the past few years, this bank paid billions in fines for basically ripping its customers off. And yet the government does nothing.
But, wait, it gets better.
Bank of America had a customer, this week, that found out doing business with that bank was not in her best interest. After 16 years, the woman went to the bank to find her safety deposit box was cleaned out. Gone was her grandmother's jewelry and other valuables. Do you think anyone did anything? What do you think the bank's reaction is? Thanks for telling us?
The list of these institutions crimes are endless. Just in case some of you forget, the entire economic collapse, a decade ago, was the result of the banks taking mortgages and bundling them as securities. Of course, we all know the result of this.
Did anyone go to jail? Naturally the answer is no.
Yet cryptocurrency is something that the public needs to be protected against.
Oh the hypocrisy.
There is a degree of risk with cryptocurrency. No doubt about it. People can lose money. Nevertheless, cryptocurrency, overall, is a lot less risky than doing business with the big banks. Their track record is well established. These people are outright crooks.
So while a party with hookers and cocaine sounds like a great time, you have to ask yourself if it is really good for you?
Upon deep reflection, the answer always tends to be it isn't.
Wall Street is certainly the wolf in sheep's clothing.
And the only thing organizations like the SEC are doing is aiding them in their scandals and crimes.
With protectors like the SEC, I guess we need an organization to protect us from them.
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I've thought something similar. I know the prices will inflate when they eventually swarm the market, because they'll buy at any price they have to pay, confident they can later get someone else to pay more. They are gambling with other people's money, and lot's of it, so are quite bold.
If you think about it, the entire market is still pegged to BTC. They may invest in other coins too, but ETF folks are going to especially want BTC. Yet there aren't enough BTC that will ever be created for every millionaire to have a single coin. So obviously demand is going to exceed supply when everyone with a bank account wants some and governments and Wall St. are able to pay any price for them.
Maybe it's inevitable. Maybe not though. Maybe the market collapses as an investment market and winds up being just techies using crypto to secure public blockchains doing techie stuff. Maybe it never goes mainstream, just advances technology.
I keep asking myself if I would want to be invested in crypto just for the way it liberates access to money and global exchange, or just for what it means for the advancement of technology, or just for what it means for decentralization of money. Would I want to invest in it just to support those ends, even if I wasn't going to make much money off it myself.
And I have to face that I see those as important benefits of crypto, but I invest for long-term profit potential. So while I don't want Wall St. dominating crypto, I think it may be inevitable, to the financial benefit of those of us investing before that flippening, and detriment of what could be if it stayed small and obscure.
It's simple. It makes things easier and more frictionless. People want to save time and energy. Since we value our time more than the rest. That will say eventually everyone will be using it.
In a way it's poetic justice. The banks have excluded the third world from access and now bitcoin is the 3rd world's for the taking, but as Andreas Antonopoulos said, the banks are in a gilded cage. That cage prevents them from playing in the crypto space through their own regulations. They want to sink pension funds into crypto and probably shouldn't. If my retirement is rescinded because some bank wanted to invest it into 0x and it went bust, who would be on the hook for that mismanagement?
It is a good thing that banks can't usurp bitcoin because if they can, they will have everyone in the industry trying to make it illegal, calling it a fraud, etc, in order to shake out the weak hodlers. Then they will come in and buy bitcoin up for pennies on the dollar while the rest of the unregulated world buys back in at higher prices. We should be glad that this isn't allowed to happen which will certainly be the case when ETF's eventually do get approved. Now's the time to stack up before the institutional money starts flowing and be aware that the bankers will do everything they can to shake you out first.
Simply put, crypto is a conflict of interest for fiat. In many ways the two mirror each other. In time, crypto will find its footing; and, the two economies will function in tandem. One will never replace the other. It will all be a matter of consumer choice. The use of crypto will grow as its economy grows.
Best regards.
Peace.
Peace.
You are wrong. Do you seriously believe money can compete with Blockchain technology? It's like comparing a horse to a Ferrari. One will never replace the other? That means you are not well read up on history what happens when better technology comes a long
Lol...I love when people can see into the future.....Ha! Smh....
Crypto will line up as an alternative to WS; but, it is highly unlikely (never say never) that it will ever replace fiat. Those who have the most money make the rules. As long as crypto has the risk factor, with no guarantees of reimbursement for swindled losses, it is merely seen as a 'high-risk' trader's choice.
Crypto is currently without risk of legal recourse. WS is federally regulated, and crimes are punishable by law...think Bernie Madoff (made off) and Martha Stewart for starters.
Best regards.
Peace.
Cars are highly unlikely to ever replace horses also. If you think a bank system from the 1800s can compete against 3 second transfers with 0 fees then you are uneducated. Money is not power anymore. Technology and human relationships is. In an abundant world with everyones needs met money will lose even more of it's power. Traders live in a scarcity mentality where value is scarce and nobody ever has enough. Crypto is a new paradigm shift of liquid value.
Surely you know this is being replaced with AI...ever heard of Alexa? She's just the beginning. I never would have imagined that Total Recall could be so real to life...love that movie!
Technology will replace the need for humans...it already is doing so...ever been out with friends and faces buried in little screens?....lol...
It sure is...people have to decide if they want regulated or deregulated 'investing'...Crypto is manipulated...Crypto is friend to the shady dealer....
Btw, money is 'power'. If you don't believe me, try competing with someone who has some; and, see who gets the attention....which reminds me why I'm feeling scroogy...someone with $300K won the bid on a property I had my eyes on...
You caught me on a good day @phoneinf...needed a feisty discussion...lol...feelin' betta already! (hysterically lol!)
Peace.
What I meant was that money is losing power as people become more abundant and Technology and experiences becomes cheaper. It's not as exotic anymore.
Aha...got it! You get no argument from me on this one.
I'm reminded of Warren Buffett who says he wouldn't touch crypto with a 10-foot pole. But, he doesn't forbid his kids and grandkids from investing in the same. So, indirectly, he is 'investing'.
Some wise sage said crypto is in the Wild West phase. This means that some pioneers will be robbed along the way; while a vast majority will eventually experience the boom.
Indeed, we're living in very interesting times. The beauty of Steemit is that you can put zero in, and invest a little time posting, and still grow in value.
Best regards!
Peace.
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You heard it here first: A vote for ETF is a vote for hookers and blow. Only a matter of time for the green light folks.
Very well thought out article and i couldn't agree more. When wall street comes, and they will...as a trader, this is what i have learned and teach others as well..always always take your profit. Dont worry about it coming down, we know that will happen 😁. Dont worry about it going higher after you sell, we know that will happen too. Repeatedly, never ending..🤗. Make no bones about it. Wall street $ is already in crypto. Much much more is coming, but not until the safety nets are in place to keep the crooks from losing the $ they have stolen from others in the legacy system😂. They are coming for our crytpo. They can have mine for more than i paid for it 😇😎😁
It was a big step that got denied, but it only reflects a small step back in our path to reach higher flights. The reality is that this rejection hurts us in terms of mass adoption, but it shows us what we already thought, the banksters want to delay crypto the most they can.
I think in the end it turned out to be a positive thing, because I don´t think we were ready to explode right now, and waiting some more time will improve many more things, because crypto is always working to get better (better projects).