Market's Dependency on SEC
SEC loses a case in court, market goes up. SEC threatens to sue, market goes down; Await BlackRock BTC ETF application approval? Market goes up; SEC delays approval? Market goes down. It seems the cryptocurrency market hangs on every word from the SEC these days, especially when it comes to the approval or denial of Bitcoin ETFs.
This is where we are in the market now, and I can't emphasize enough how distasteful this dependency on the SEC's decisions is. Given, the SEC's role in the ETF approval process is important because it lends legitimacy and a certain level of safety to the asset, influencing both retail and institutional investors.
BlackRock's Trillion-Dollar Misconception
I also understand that BlackRocks trillion dollar net worth can catalyze high demand and a bull market BUT it’s certainly not in the way people are thinking or making it to seem like.
Many think that BlackRock will pour a trillion dollars into Bitcoin upon approval. This is not just overly optimistic but also fundamentally incorrect. It stems from a misunderstanding of how ETFs work and the role of institutional investors in shaping market demand.
Remember Bitcoin ATMs?
It pretty much reminds us of when Bitcoin ATMs were first introduced and everyone thought their approval would cause a bull run. While that didn't happen, these ATMs did increase accessibility and understanding of Bitcoin for the general public. It’s the same thing with BTC ETFs, If retail and institutional demand for Bitcoin doesn't increase, the effect of an ETF could be minimal.
An ETF is only a tool that facilitates investment; it doesn't, in itself, create demand. So, while an ETF could act as a catalyst for a bull run, it's not a guarantee. It won’t suddenly lead to a bull run but it will sure ease adoption and anything that eases adoption is a bullish case even though the effect may not be sudden, it gets the ball rolling.
The Real Catalysts- Beyond “Money Go Up”
What we should focus on is spreading the information and education that Bitcoin offers, not money go up, this is not the time for that, people around the world need saving, global economies are crumbling due to inflation, our savings are loosing value to inflation and redundant monetary policies.
Bitcoin and cryptocurrencies have the potential to revolutionize the financial system, provide financial inclusion, and act as a hedge against traditional economic pitfalls.
Bitcoin as “digital gold”
Bitcoin's benefits are more pertinent than ever. The cryptocurrency serves as a digital gold, offering a store of value that stands robust against the devaluation of fiat currencies. In countries where inflation rates are skyrocketing, Bitcoin offers a haven for preserving wealth.
Global financial inclusion
Bitcoin also has the potential to bring financial inclusion to the billions of unbanked and underbanked individuals around the world. It grants people the sovereign control of their assets without the need for an intermediary, a crucial feature in economies where trust in local financial institutions is low.
According to the World Bank, nearly 1.7 billion adults remain unbanked. Bitcoin grants people the sovereign control of their assets without the need for an intermediary, a crucial feature in economies where trust in local financial institutions is low.
Security and Transparency
The blockchain technology behind Bitcoin ensures transparency and security, features that are often missing in traditional financial systems. Additionally, Bitcoin's ability to facilitate quick and low-cost international transactions makes it invaluable for economies dependent on remittances.
Unlike traditional financial systems, every Bitcoin transaction is recorded on a transparent public ledger, ensuring accountability and reducing corruption.
Conclusion
There’s so much Bitcoin and the entire crypto industry has going for them than just hoping on Bitcoin ETF approvals from the SEC, let the failing global economies do the heavy lifting, the redundant monetary policies and the uncontrollable sky rocketing rate of inflation as people scamper around for alternatives.
As global understanding and appreciation of these benefits grow, the cryptocurrency market's dependence on external regulatory decisions like those of the SEC will diminish and this should be our focus.
Thanks for reading
Images are Ai generated
Posted Using LeoFinance Alpha
Some (or probably most) think that the approval of Bitcoin Spot ETFs will impact the market but as you said, there's actually more than that.
By the way, may I recommend citing the sources of images used in your article as it is one of the factors for Leo curation. Thank you :)
Hi farmgirl. The images are Ai generated that’s why they aren’t sourced. Thank you
Okay, thanks for letting me know :) Or it would probably be best to indicate it at the bottom of your post so others would know as well :)
Something like this:
Images used are AI-generated
Alrighty would do that 💪🏻
Awesome! Thanks and cheers to you this weekend!
Thank you, have a great weekend 🙏
Congratulations @mistakili! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 18500 replies.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts: