Can the Bitcoin ETF be bad for BTC?

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The bitcoin ETF is closer than you think

With each passing day the possibility of the Bitcoin ETF getting approved keeps getting stronger.

Now the question is no longer “if the bitcoin ETF would be approved? Rather it is “when would the Bitcoin ETF get approved?”

The funny part is that we in the crypto world are waiting for the ETF to get approved.

Why wait with anticipation?

Well it would bring a lot of fresh money into the system. So the crypto you hold could go up multifold.

Fresh money would chase BTC and the good projects. So technically everyone who holds tokens and coins in these projects could end up becoming rich. So what could be wrong with that?

What is the idea behind BTC

A school of thought suggests BTC was more of an experiment that happened in 2008 post the Lehman Brothers collapse.

BTC evolved as an alternative to the centralized financial system that was collapsing at that time.

Internal rot and collapse is something which keeps happening to the financial system almost on a cyclic basis.

It would be interesting to see who is holding the money that could come into the crypto market once the Bitcoin ETF gets approved.

The fiat financial system is very opaque. How money changes hands behind closed doors can be difficult to track. The smart money and big money is controlled by the Blackrocks and Greyscales of the world.

They are working closely with the centralized financial systems and often have tremendous say in the decisions they make.

The good thing about BTC is that you can make fractional purchases

The price of BTC may be $35000 per coin or $100000 however the good part is you can buy it $100 worth of BTC or $1000 worth of BTC according to your budget and risk taking capacity.

What goes against the person buying BTC as its price moves from $35000 to $100000 is the network fee you pay to acquire your BTC plus any exchange fee.

If the price of BTC were to go up then with the limited means of purchase the common folks would get less and less BTC with the money they have.

Greyscales and anyone running the ETF can bring in a lot of money that can push the price of BTC up and away to the moon.
This may bring value to the handful of people who hold it . Eventually they may even end up selling their BTC to the BlackRock's of the world.
If this were to happen BTC would be held by only a handful and would completely go out of the hands and reach of the common folks.

From a time where anyone could mine BTC on their computer or use a faucet to claim a fraction of it to a point where it is held by the big names of the financial system would defeat the purpose with which BTC was born.

BTC would become a puppet in the hands of the big financial names.
Would it be good for the idea of BTC?

Well it defeats the idea of freedom that BTC was supposed to bring to the common folks and perhaps be an alternative to fiat money.

Instead it would be heavily used more as a store of value and whatever transactions happen would be made by the big account holders.

Those who hold a small fraction of BTC may find the network fee being too much in dollar terms and this could deter them from buying or holding a part of the BTC
At best their best bet could be some wrapped version of BTC or some instrument launched by the big players that is backed by BTC
This would deprive them of choice of holding the actual BTC or a part of it.

Moreover an ETF where you do not hold the BTC in your wallet defeats BTC as a coin which you own as you own the keys to your wallet.
Instead someone else may hold your BTC and its keys.

This devoids the users from the freedom that BTC promises.
Crypto ownership is represented by the ownership of keys. A common saying is not your keys, not your crypto. With an ETF you're never going to hold the keys to your BTC.

ETF is a very different instrument that works differently from how BTC works.

Claim your freedom with Inleo and hive

Since we are talking about freedom, we might also mention Hive which is a great place for web 3.0 content creation.

We are already in the year 2023 and past the era of web 2.0
Currently the new trend is to own your freedom with web 3.0
A web 3.0 account on inleo/hive gives you a web 3.0 social media account where you own your keys.

No centralized entity can delete your content or your account, moreover the content that you create even earns you crypto by way of upvotes you receive on your content.

Take action

If you are not on inleo/ hive then get your FREE account here

Also do tell your friends about this great opportunity and help them get onboard.

Posted Using InLeo Alpha