Earlier quoted context omitted.
gold is a precious metal. bitcoin is a text file.
Bitcoin is a share of a conversion from electricity to waste heat.
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SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
111–120 of 357 posts
Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#112How did you find this? I was unable to do so from the SEC's main page.
Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#113How did you find this? I was unable to do so from the SEC's main page.
Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#114Earlier quoted context omitted.
Yup. Any "currency" that can plummet in value by 25% because of a minor SEC ruling is not ready to be a store of value.
Well, it can't compete with the USD. But plenty of nations like Venezuela have citizens that would happily take a >25% haircut to escape their governments capital controls. When Greece went bankrupt, life was much easier for anyone with Bitcoin than for anyone without it. As many issues as Bitcoin has today, it has clear use cases.
>When Greece went bankrupt, life was much easier for anyone with Bitcoin than for anyone without it.
How? Bitcoin atms were basically non-existent there and from what I read on /r/bitcoin at the time from Greeks no one there was accepting it in stores.
Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#115Here's the basic thing: Bitcoin is fatally flawed. Is it meant to be a payment method (in which case an ETF or otherwise treating it as an investment vehicle is roughly as nonsensical as having an ETF that deals with blank checks) or is it an investment (and if it's an investment, what on earth are people investing in?). The volatility of Bitcoin plus the constrained supply leading towards upwards pressure on the pri…
It protects you against hyperinflation. It also protects the innocent from having their funds unfairly seized. It puts you in control of your money in a way that no other asset can.
Bitcoin's biggest use case is as an emergency fund. People in Venezuela who bought at $1200 in 2013 were still doing comparatively well when the price was $200.
If oppressive capital controls crack down in a nation like Turkey, Bitcoin can protect you.
Bitcoin is excellent for protecting yourself during financial emergencies. High volatility is acceptable in these situations. Some money is better than no money at all.
Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#116Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#117Bitcoin just went from a high of 1327.1926 to 995.9575 in the blink of an eye. Wow. From the ruling.... > First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated. > Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulat…
When the Winklevoss twins became aware of BTC (or at least shortly after they started talking about it publicly), some classic market manipulation ploys began appearing.
It could be coincidental, but I've always been suspicious that the Winklevoss twins were the first people of a mind and with the capital to start gaming the BTC market as one can any other financial institution.
The Winklevii are not people I'd like to distantly do business with.
Edit: I'm trying to find articles but it was years ago. What I recall were cycles of Ramps and Bear Raids. https://en.wikipedia.org/wiki/Market_manipulation
Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#118Bitcoin just went from a high of 1327.1926 to 995.9575 in the blink of an eye. Wow. From the ruling.... > First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated. > Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulat…
to be honest, creating an ETF exposes bitcoin to even more debt-backed trading, increasing the risk of bubbliness. In the medium run, this decision is probably "better" for bitcoin, since I think there is still trepidation about the realness, uncertainty, and misunderstanding about the market for the "intrinsic" value of bitcoin - a medium of exchange built on distributed trust.
Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#119Here's the basic thing: Bitcoin is fatally flawed. Is it meant to be a payment method (in which case an ETF or otherwise treating it as an investment vehicle is roughly as nonsensical as having an ETF that deals with blank checks) or is it an investment (and if it's an investment, what on earth are people investing in?). The volatility of Bitcoin plus the constrained supply leading towards upwards pressure on the pri…
Nothing you've said about Bitcoin is new, and yet it's been around for half a decade now, and the price is still in the $1000/coin range. At some point people are going to recognize that whatever it's used for, it has some value.
Re: SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]
#120Here's the basic thing: Bitcoin is fatally flawed. Is it meant to be a payment method (in which case an ETF or otherwise treating it as an investment vehicle is roughly as nonsensical as having an ETF that deals with blank checks) or is it an investment (and if it's an investment, what on earth are people investing in?). The volatility of Bitcoin plus the constrained supply leading towards upwards pressure on the pri…
I think your logic is flawed. You're saying bitcoin's deflationary nature is bad and then proceed to talk about how volatile it is and the bad vibe that it carries BECAUSE it keeps going up in price so the only reason to spend it is for illicit things.
So then here's the controversy of your statement - if bitcoin is a deflationary appreciation-only thing - then maybe it's not as volatile as you claim and is fit to be used in EFT scenarios? Or if it is in fact volatile then maybe it's not all that deflationary in that it's value isn't bound to be going up indefinitely?
Which is it? :)
As a side note - yes, the mechanics of coin mining do make bitcoin "technically" deflationary, but just like any other "thing of value" this doesn't guarantee it's value in the "real world" to be mapped to that deflation 1-to-1. There's a finite supply of gold or oil out there for example - their prices however are bound to fluctuate quite a bit...