Topic: DNotes 2.0 - Staking, CRISP Interest, DNotes Pay - page 50. (Read 148866 times)

Hey Nightz, welcome to the DNotes forum!

My response to your question would be that the effect of Bitcoin ETF's on the market would be difficult to quantify. That said, there are a couple of things I'm certain that they would do.

1. They would make it easier for people to trade Bitcoin on well respected and more reliable exchanges, where all the really wealthy people and institutional investors play the market.

2. The security of the bitcoin will fall to the fund and not the investor, which will give these big players & more risk averse people a sense of security when it comes to theft and fraud.

Both of these things will boost the liquidity and legitimacy to the markets, and make investors feel safer buying Bitcoin, rather than having to go to small exchanges with histories of getting hacked, and then transferring money to it, then sending the Bitcoin somewhere for storage, creating a paper wallet etc. There are a lot of things that can go wrong to a non-technical person who has never done it before. It works the same way when they want to sell their Bitcoin. They would need to send their Bitcoin to the exchange (which could take 30mins), and hope the liquidity is there to sell without a big price drop etc. ETFs are supposed to solve this issue. And individuals can much more easily track the current value of their portfolio at the fund.

If there is a lot of demand for the ETF shares, then the price of those shares will trade higher than what the Bitcoin spot price is, and the fund will then go into the markets and purchase more Bitcoin (which raises Bitcoin price). It basically opens Bitcoin up to everyone who has money so that they can trade Bitcoin in the same way that they are used to trading everything else that they are already trading.

For all we know, ETF's could make the demand for Bitcoin and other cyptocurrency assets rise exponentially. Not necessarily immediately, however

I agree with both assessments. Like any technology, cryptocurrency's impact is likely to be different in different areas of the world. Security cameras and facial recognition software are great examples of how a technology can be both beneficial and detrimental, depending upon the government's nature and intent. In countries with strong civil liberty protections, that technology can be a relatively non-intrusive way to identify criminal and terrorist threats. In other countries, that same technology can be used to monitor the citizenry, chill basic liberties, or facilitate a centralized 'social credit' system. Digital currencies can be a powerful tool when they remain decentralized and inclusive. In the hands of the wrong centralized entity, however, the technology has the potential to be used to further control the people.

Slippery slope, indeed.

It's a very concerning, but predictable development where technology can be used to exercise control. The cool thing is that there are many viable alternatives that anybody can use worldwide, the question is any potential penalties for doing so within certain states.

This is a very slippery slope of immense risk. It will lead to significant lose of assets and privacy. In brief, this will negatively impact the cryptocurrency issuance nation, its citizens, and others who do business with the subject nation – including foreign visitors.

I cannot think of a wise case for any sovereign nation. The true value of digital currency using it ingenious underpinning blockchain technology is the issuance of a defined limited supply of currency governed by algorithm in a decentralized entity not controlled by anyone, for everyone globally, with pseudo- anonymity. 

That is a long trip for sure. It was great to see you, we got quite a bit accomplished.

I certainly wouldn't want to be them at this time. The industry is maturing, and we are a part of that process. We gained a lot of respect from our participation at the family office conference, and we are lining up interest both for this funding round and future rounds.

I just arrived back in Australia after several delays and around 60 hours total travel time (24 hour delay included).

Crypto Hedge Fund Warns of Possible ICO Refunds After SEC Decision

Pantera Capital Management said about 25 percent of the blockchain and digital-currency projects that its ICO fund invested in could be found in violation of U.S. securities laws and may have to refund money to their backers.

The Menlo Park, California-based hedge fund said the projects may be at risk after the U.S. Securities and Exchange Commission’s Nov. 16 announcement that two startups that raised millions by issuing tokens to non-accredited investors didn’t comply with securities laws. One of the projects, Paragon Coin, has already announced it may have to pay back investors.


Many startups -- especially those that conducted initial coin offerings last year -- didn’t register with the SEC, and also sold their tokens to regular people, instead of the more sophisticated accredited investors. As regulators have begun clarifying their positions and revving up policing, the way tokens are issued has undergone drastic changes.

While we believe the vast majority of the projects in our portfolio should not be affected, approximately 25 percent of our fund’s capital is invested in projects with liquid tokens that sold to U.S. investors without using regulation D or regulation S," Dan Morehead and Joey Krug, Pantera’s co-chief investment officers, wrote in the newsletter Thursday. “If any of these projects are deemed to be securities, the SEC’s position could adversely affect them. Of these projects, about a third (approximately 10 percent of the portfolio) are live and functional and, while they could technically continue without further development, ending development would hinder their progress.”

https://www.bloomberg.com/news/articles/2018-12-13/crypto-hedge-fund-warns-of-possible-ico-refunds-on-sec-decision