Thu, Jan 11
January 10, 2024, will henceforth be considered Victory Day for the cryptocurrency space. After all, it was on this day that the Bitcoin ETF was approved by Gary Gensler, Chairman of the U.S. Securities and Exchange Commission, marking a significant milestone in the history of the industry.
However, this approval also came with a vigorous appeal from the Chairman regarding the cryptocurrency ecosystem. Despite having approved the Bitcoin ETF, he doesn't contribute much to the space and continues to say that the ecosystem is full of fraud and individuals with malicious intentions towards consumers. By uttering such words, Gary Gensler is being himself, and as this is not new, it is clear that he is not a fanatic (or at least he wants the world to think so) of the crypto industry.
A celebration moment for all cryptosphere but what can come from this frenzy?
The approval of the Bitcoin ETF is undoubtedly a milestone in the world and suggests that the traditional sector is gradually giving way to the decentralized one. However, the interests behind this approval must be analyzed.
The crypto ecosystem is undoubtedly the preferred place for wealthy individuals and corporations to invest their money nowadays, and the state is aware of this. Corporations like Grayscale, MicroStrategy, governments like El Salvador, Tesla, and other multibillion-dollar companies have some form of investment or fund in cryptocurrencies. In other words, several billions of dollars are moving from the traditional world to the crypto space more consistently, and this is undoubtedly a concern for the state.
More Capital will get in Crypto and Corporations will be more richer than ever
The state sees in this form of investment a loss of control over private money and fears that many companies that do so may not pay the due taxes. This, my friends, is what concerns the state, after all, they live off these taxes and will do everything to ensure this continues to be the case.
The Bitcoin ETF was approved not because the crypto space is where the United States, for example, looks favorably but because it is necessary for them to continue to collect taxes and monitor the flow of money that is invested in it. Thus, they have, or think they have, control over the companies and individuals who operate in the space by implementing various regulatory policies that only they can.
Busting the Myth: Does the Bitcoin ETF Really Serve the Average Joe?
It's a myth not a reality.
Wrong! While the approval of the Bitcoin ETF may have an impact on the cryptocurrency market by boosting it as a whole, where various cryptocurrencies may temporarily explode in price, its essence is to give large corporate funds and millionaires the opportunity to buy more Bitcoin. I wouldn't be surprised if the price, instead of rising, falls back a bit, thus opening up opportunities for the wealthy to buy Bitcoin on sale and have a good stash of the asset.
The average citizen won't feel much impact from this approval, but traders, exchanges, and cryptocurrency funds, as well as large companies looking to invest in the currency, will have a few busy weeks trading and reaping profits from the approval.
Beyond the ETF Hype: Why Crypto Adoption Matters More for Everyday Folks
Adoption is the backbone for a more conscious society about crypto assets
I have no doubt that the Bitcoin ETF is a good thing for the space as it concludes that the relevant authorities are viewing the ecosystem differently nowadays. However, the true victory for the average citizen is the adoption of cryptocurrencies in their everyday life. It is necessary for people to start using cryptocurrencies as an integral part of their lives and thereby make the best use of them.
We can consider cryptocurrency adopters to be those who use it for payments for goods and purchasing products, not just for corporations to use as investment or capital preservation funds.
For example, if we give someone a hundred dollars equivalent in cryptocurrencies and explain how they can use it to buy something they really need in their day-to-day life, this individual will do everything to ensure that most of their community knows the importance of cryptocurrencies and thus have a space where they can spend the same, whether in a store, service, or even to buy and pay for a beer using crypto.
People are very important in the dissemination of cryptocurrencies, and as they see a direct benefit, they will voluntarily be ambassadors and spread the word about this type of digital decentralized money. All it takes is to explain to more people what crypto is, how to use it, and naturally, cryptocurrencies will have a significant impact on the world, because everything starts with the desire to give cryptocurrencies a usability function.
If people can use it they can undoubtedly be a significant part on the Decentralized economy
In conclusion, the approval of the Bitcoin ETF is undoubtedly a great advance for the crypto world and also ensures that more money flows into the ecosystem. However, it is not for the common man but for corporations, investment funds, and pro-Bitcoin governments, as they have an interest in cornering the market and becoming major holders of the asset. After all, we are in the age of digital gold, and everyone wants to get their hands on it.
The best defense for the average citizen is to increasingly bet on the adoption of cryptocurrencies for daily use and thus create a decentralized economy both locally and internationally, empowering digital money to be essential for community evolution and more payment methods to be used regularly worldwide.
Make no mistake, the Bitcoin ETF empowers companies and affluent individuals to trade Bitcoin and to lift large portions of profits from the market. It is up to the average citizen to understand this and start participating more in the decentralized inclusion regularly and make the most of it because the Bitcoin ETF creates a space for the evolution of the space to be even quicker.
Be smart and adopt cryptocurrencies as a payment method for products and services, and have an excellent day.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company.
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