SEC Rejects Rule Change for Bitcoin Exchange-Traded Fund [pdf]

Post by hossbeast » Sat, Mar 11, 2017, 3:11 AM UTC

megous wrote: post #251

thescriptkiddie wrote: post #174

Earlier quoted context omitted.

Generally speaking, it's a bad idea to use currency as a store of value. The unwavering stability of the almighty US Dollar is a massive historical outlier. For most of history the wealthy didn't keep Scrooge McDuckian piles of cash around, they converted their cash into hard goods and investments like loans, which won't evaporate if hyperinflation occurs. Even today, the smart thing to do is to store most of your va…

Except it's not stable at all. If you hold USD long term, because of the inflation target of the FED, you'll be able to buy less and less. USD lost a massive amount of value in the previous century alone, despite the massive advances in every field of human activity. https://www.measuringworth.com/uscompare/relativevalue.php

Post by bogomipz » Sat, Mar 11, 2017, 3:31 AM UTC

nradov wrote: post #248

bogomipz wrote: post #159

Earlier quoted context omitted.

I am not sure why you put the word currency in quotes. There have also been many state issued currencies that have done similar - see Thai Baht, Argentine Peso, Russian Ruble, Venezuelan Bolivar etc.

Volatility isn't the issue. Bitcoin isn't technically a currency because it can't currently be used directly to pay public debts or taxes in any nation state. Bitcoin is just another commodity like copper or crude oil.

Post by kolinko » Sat, Mar 11, 2017, 4:23 AM UTC

baddox wrote: post #223

slg wrote: post #173

Earlier quoted context omitted.

The only way it reduces its future potential value is by making it harder to speculate on its future potential value. Nothing about the currency actually changed.

If an official decision from the agency that regulates financial assets for the most powerful economy in the world doesn't count, then when does "something about a currency actually change"?

Post by nassirkhan » Sat, Mar 11, 2017, 5:16 AM UTC

TwoBit wrote: post #43

dhosek wrote: post #37

Here'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…

How is Bitcoin significantly different from gold? I suppose gold does get used for something.

Post by Hannan » Sat, Mar 11, 2017, 5:27 AM UTC

dandrino wrote: post #229

cowsandmilk wrote: post #216

Earlier quoted context omitted.

That wasn't a swing in the value of the dollar, that was a swing in the value of those goods. The price of a christmas tree drops precipitously the ~9PM on christmas eve every year, that says nothing about the value of a dollar.

Well, to be fair, the value of the dollar is determined by its buying power. If goods widely increased in cost, then the effective value of the dollar has decreased. Not saying that's what did or didn't happen on 9/11, though.