Topic: Why a BTC/ETF is a dangerous thing. (Read 670 times)

An Exchange Traded Fund isn't a USA regulation.

It's a financial product that exists around the world. The US just decides to regulate such things for trading on their markets (i.e. the New York Stock Exchange, the NASDAQ). That US regulation doesn't prohibit any ETF from trading on the stock exchanges of the UK , Europe, China, etc.

This is a very important distinction.

I can see the side of the argument you're presenting, and to be fair a lot of these concerns are pretty important and not misguided.

While there can be a lot of manipulation coming from the ETF when it comes to the market, as long as there isn't anything explicitly manipulative it shouldn't be too bad for the rest of the market, if current traders keep active and don't pull out once the ETF shows up.

Currently banks and local financial systems don't run Bitcoin, Thats why its a good Idea and a solid investment, (look what its been doing without that influence) , Also if countries around the world begin to tie their financial systems to Bitcoin, .It will sway the price according to their economies well being  And then it is no longer a decentralized global currency. At that point it simply becomes a purely speculative market on another basic electronic currency dependent upon the financial markets and their whims. . I personally can work this approval or disapproval of an ETF either way, . if it fails to go through, I will hold my bitcoin assets, . If it passes, I can wait for the ETF eager people to buy all in, . Then bail and let them have it while I find something else to invest in.

Fiat to gold, sorry

because ETF is USA regulation, can regulate exchanger bitcoin from USA
if ETF and SEC not aprove, bitcoin can dangerous the future, poloniex, coinbase, bittrex can closed service , if ETF and SEC not aprove

?? Huh? Banks are already in global markets. Do you know of any bank that isn't working in another country? It's bound to happen that bankers and wall St. types will want bitcoins to be available easily to the public and this is a way to do so. I'm never going to invest this way because it's basically a bitcoin bank hut that doesn't mean that bitcoins will fail or whatever you're trying to say. It's just going to increase the price because more people own bitcoins.

Honestly speaking, we do nothing really about what will happen in that day of renewal in the sec. though etf for others might not be good for bitcoin. it is just in my opinion bitcoin its decentralized commodity that can behave as a currency and transaction system.

If we listen to your theory,the globalization is a dangerous thing and we should stop it.
Bitcoin is a global currency,which means it`s dangerous and risky and we should stick to the "local" fiat currencies.Is this what you are trying to say?
Do you think that the US dollar is a local currency?
Do you think that the US stock exchange is a local market?
The ETF approval isn`t going to happen anyway.

The ETF doesn't tie fiat to bitcoin any more than being able to use fiat to buy bitcoin does.

ETF just opens access to bitcoin to more investors, people who don't want to or care to figure out what a wallet is and how to put bitcoin in one.

An ETF serves as a holding fund, an intermediary. Investors give dollars for shares. The company sponsoring the ETF then uses those dollars to buy bitcoin and does some math to figure out what their shares are worth (based on the price of bitcoin). It improves liquidity to bitcoin as an asset class, investment.

I don't think your example proves otherwise.

Also, why would a government peg something of definite value (gold) to something of less definite value (fiat)? Pegging fiat to gold makes sense and was done for a long time. But the reverse has never been done, not that I know of.

Today BTC and the local fiat markets are "separate" but viable entities in currency exchange. . . There are two co-existing entities . Global and Local, . When when a localized currency system Such as fiat. Goes into distress. In theory, . With the current BTC system, The local individuals within a localized community can then jump up to the Global decentralized trade currency BTC in order to help protect their failing assets. They freely make their jump to a Global decentralized system, And can then work on economic repairs at home.

. . And in theory, If this currency rescue system reversed and the global BTC Began to collapse, It would at first seem that ones economy on a local level would become at par with BTC then BTC would begin to fall below par. At which time the collapsing global BTC community in that local region would then begin selling the failing BTC and fall back to a local fiat. (Some would not make it without hardship of course). I firmly believe This Global Local system may be a valuable tool in the future to try and save small distressed local communities like our Greece and Venezuela in the world today. Now as an added example, lets say If a local community ever successfully "pegged their gold to fiat" after a bad previous local collapse and they afterwards created a good working local fiat system (or any other type currency system) in their localized community, those citizens therein would then by human nature begin slowly selling their global BTC and then jump the Global Local air gap and sift yjrit assets back down to the local community system, . This two “separate currency system” is then a rescue device that works both ways. If the two markets are free "separate entities without ties that bind, I believe this total separation between the two systems is necessary for the system to work.

In th e future, .I see banks as being banks currently within separate local communities and online exchanges, as “online” exchanges, within the global community only,

I would hope that those within the financial system would keep all the localized community markets and local finance systems completely off the global BTC currency grid, the only way to jump the gap from local currency to Global decentralized BTC, should be jumped through an online exchange or personal one on one private exchange. . Yes I'm getting to the danger of the ETF proposal

Once you start tying these two separate systems together (Local and decentralized Global). where online finance becomes stock broker/online global currency exchange, or BTC/ETF , and all the other areas with regulations and rules that bind these two markets together. You defeat the rescue mechanism. Because, . . if they are all tied together and the global BTC system collapses, . you now have a problem at the local level of rescue. The Global takes the local down with it. And you have a world wide collapse of both systems when the gloal fails.. Any and all financial ties binding and blending the two currencies together defeats the backup rescue systems both provide.

Besides all this, Now to the proposed ETF. .If a localized market (such as the US stock exchange) badly wants to invest in the BTC phenomena, there are other air gapped means already in place for them to do so. Such as, . . If in the future a global BTC becomes widespread and stable. It will grow immensely in size, This growth will create hardware needs for mining and processing, . Those in the US stock market can already easlily invest in any digital BTC hardware companies. Anyone up for a (IBM,Cisco,Samsung) BTC future speculative legal ETF?

In my opinion, Tying together any local markets to this decentralized global system would create a scenario of the possibility of collapse in local markets subject to the global arena. In my opinion, Its not worth the risk it to do it,. .And once started, It begins a slippery slope in which more and more you eliminate the separation and hence the ability for system rescue at the cost of the individuals and their assets, . please dont approve this BTC/ETF

disclaimer, . I do not own stock in any afore mentioned companies, . . . . . yet , but maybe tomorrow if the system looks healthy