Last Friday — Mar. 10 — will forever remain in most Bitcoin enthusiasts hearts, though not in a good way. Arguably one of the most awaited decisions involving Bitcoin was delivered and it left many Bitcoin users with a broken heart, especially those living in the US. The first Bitcoin ETF in the US was just hours away from being a reality. The SEC delivered a killer blow as it rejected a proposal by the Winklevoss twins to have the first Bitcoin ETF in US. The SEC through this statement disapproved the proposal stating it was not consistent with section 6(b)(5) of the Exchange Act. The SEC claimed that an exchange that lists and trades ETPs must meet certain requirements which include regulation and sharing of agreements with markets. Which is not so with Bitcoin exchanges.
After this hurtful decision, many experts tipped Bitcoin’s price and value to fall which it did, but then it was able to pick itself up and currently it’s trading at $1,146 — note its price keep changing from time to time. Most Bitcoin enthusiasts say that this decision by The SEC is bad for Bitcoin, but what if there was a way to look at it in a different perspective? Maybe this is a win for Bitcoin. Let’s look at it this way:
According to the statement released by The SEC, an ETF would require significant amounts of banking and government surveillance. So I am left wondering, is this what the Bitcoin community really wants? The answer I would guess is an emphatic no. Bitcoin transactions already as it is are transparent and can be viewed by the public. This has led to Developers coming up with software in a bid to make Bitcoin transactions anonymous to meet the demand of Bitcoin users who still value their privacy. Many cryptocurrency users are avoiding using Bitcoin due to its lack of privacy and they have turned to other altcoins such as Dash and Monero which offer better privacy.
I have no doubt the Winklevoss twins are noble and decent gentlemen, but frankly speaking, who wants two people to have so much control over Bitcoin? I believe no. The two gentlemen own Gemini Exchange in New York and it’s estimated that they have around 100,000 BTC between themselves. Now imagine they have all that and then they get full access of a Wall Street fund full of Bitcoins.
I don’t see any urgent need for changing Bitcoin at the moment. The ETF would have enabled mainstream investors to easily buy Bitcoins from the stock exchange. If these mainstream investors really want to invest in Bitcoin, why can’t they earn it like the rest of us do? Actually it’s quite easy, just go to an exchange of your own choice and buy Bitcoins then move them into a hardware wallet. Last year, Bitcoin’s value grew with more than 100% and this happened without Wall Street’s help, so I would say Bitcoin is doing, and will continue to do fine, without Wall Street.
Currently, Bitcoin has more pressing issues to deal with such as high transaction fees, so let’s forget about the ETF and Wall Street and start tackling these issues.