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My two sats on #Bitcoin #ETF:

The only good thing that the ETF will do for Bitcoin will be a price pump. But what will it do for Bitcoin adoption? In my opinion, nothing. ETF will not help people understanding the value proposition of Bitcoin, only to enrich them in dollar terms. Is that what we want?

Moreover, buying bitcoin though ETF will be no different than buying them on a CEX. We bitcoiners always warn about the importance of self-custody and now we are all screaming at the wonders of ETF; isn’t it hypocritical?

What do you think?

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Discussion

bevo 2y ago

All we can hope is it brings more people to Bitcoin that don’t already hold it. They will inevitably learn they must self custody. So I see it as a net positive Altho there will be pain for people along the way.

tuma 2y ago

No, that’s the point imo. They won’t have to learn self-custody because it would be just a mean to earn more dollars for those people.

We need more people that are educated by bitcoiners on the values of Bitcoin, not random people coming in for easy money.

⚡️BTC REVOLUTION⚡️ 2y ago

Agreed. But Corporations and Individuals have different needs. Corporations can’t hold keys like individuals can. It opens the door for them to get in.

Individuals should always hold their own keys if they can.

tuma 2y ago

Do they though? ETFs will be just KYCed custodian solutions with third party risk. Probably good key management would be better? Don’t know!

⚡️BTC REVOLUTION⚡️ 2y ago

I’m sure there will be a better way one day… not sure how corporate management would decide who holds and manages the keys

tuma 2y ago

We should ask Saylor😂

⚡️BTC REVOLUTION⚡️ 2y ago

I’ll offer to hold the keys 🤷‍♂️

jp 2y ago

respect, but counterpoint:

I think the ETF will be good for overall adoption because it's a solid step forward into mainstream normalization of seeing BTC as a legit asset vs just weird Internet money or a tool just for criminals and terrorists.

the more the world of normies can hear about BTC framed as a financial opportunity vs a scam or a joke, the better for overall adoption.

another baby step towards the orange pill for the mainstream.

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tuma 2y ago

Interesting take, and I do agree in part with that.

Do you think we need to have people seeing Bitcoin as a “legit asset” instead of seeing it for what it really is? Unfuckable money?

Entropy 2y ago

Enriching people in dollar terms will lead to selling for dollars, which means wider distribution.

It's the same as with previous cycles, but with a larger market cap. New entrants are going to sell while in profit thinking they are geniuses, but some will hodl and learn and become the latest wave of bitcoiners.

tuma 2y ago

Ok this may be true. But who will they be selling to? Blackrock and so on will hold their bitcoin and will keep them after people sell their shares probably? Is this the “redistribution” you are aiming at?

Entropy 2y ago

I think it depends on how the powers that be try to close access off to regular people

If exchanges are allowed to continue to operate little fishes will continue to buy real Bitcoin. Blackrock and their ilk will also be buying, but it won't be just them.

My only point is that I think 99% of bitcoiners do in fact have a price at which they are willing to part with at least some of their stack. That will end up in the hands of other plebs, newcomers, Blackrock, and any anyone else willing to buy at the spot price and self custody.

I do agree that Blackrock will eventually rehpothecate. And they'll get blown out as a result.