Bitcoin
Here Is Why Bitcoin (BTC) Does Not Need the SEC, Wall Street and an ETF to be Great
When the Bitcoin (BTC) ledger was launched back in 2009, Satoshi Nakamoto intended for the network to facilitate a peer-to-peer electronic cash system that was independent of third party financial institutions. Satoshi had more or less implied that these latter institutions had gained control over the global payment systems as well as our way of thinking as to how we should conduct day to do business.
In Bitcoin’s whitepaper, Satoshi had this to say in the abstract section of the document:
“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.”
He would also add the following in the introductory section of the same document.
“Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model.”
What he meant by this, is that the Bitcoin network could completely eliminate the need for financial institutions in everyday commerce. This would, in turn, reduce transaction costs, solve disputes quicker – since transactions are immutable on the ledger – as well as allowing two parties to transact without the need for a third party to validate the transaction. We would also have our ‘money’ neatly stashed away in our encrypted wallets away from banks that can use the money to make profits without our knowledge (which they do).
Therefore, do we really need Wallstreet and an ETF to validate the value of Bitcoin?
In a sense, we do not need Wallstreet. One is tempted to say that our thinking has been ‘polluted’ by the old model of doing things. We have been led to believe that we need the reputable financial institutions and governments to tell us that a payment product, such as Bitcoin, is great.
You can also argue that the same financial institutions have the right to use Bitcoin and its open source code to further their cause in the same industries that they thrive in. Bitcoin is completely permission-less. Therefore, it is within their rights to seek regulation of products such as ETFs.
Summing it all up
We, the users, need to remember what attracted us to Bitcoin in the first place. We were tired of high transaction costs while using regular payments avenues; institutions having our personal information, and we wanted to regain back our right as The People with a decentralized currency and network.
We have been led to believe that we need Wallstreet and an ETF to validate the precious Bitcoin and the other 1,700 or so cryptocurrencies in the markets. The fact remains that we do wield some power to determine the future of our digital assets.
Remember the SEC received over 1,300 public comments on their website for the CBOE Bitcoin ETF. This is one reason they chose to postpone their verdict. We, the people, let them know who is boss.
We can also opt not to care about the SEC and Wallstreet. We can opt to continue with business as usual in the crypto markets as well as using our digital assets as a means of payment for our day to day activities. We can manage to make BTC a global currency.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Bitcoin price dipped below the critical support level of $26,500 on Monday following the SEC’s accusation against Binance. At the time of writing, Bitcoin was trading 5.10% lower at $25,741.35. The asset’s total market cap has dipped below $500 billion to $499 billion, while its total volume pulled back further.
Binance vs SEC
The crypto market was in the red on Monday as Binance faced accusations from the SEC. The global crypto market cap fell 5.13% over the day to $1.09 trillion, while the total crypto market volume increased by 104% over the same period. Bitcoin’s dominance also fell over the day.
Bitcoin price was experiencing its worst day since March on Monday, as the crypto leader fell below its important support level. Ethereum, the second-largest cryptocurrency by market cap, also inched lower by nearly 5%. Altcoins such as Dogecoin, Shiba Inu, Litecoin, and many others were in freefall, moving in tandem with the heavyweights.
The US Securities and Exchange Commission (SEC) accused Binance, the world’s largest cryptocurrency exchange platform, of mishandling customers’ funds and operating an illegal trading platform in the US. According to the Wall Street regulator, Binance had been mixing billions of dollars in customer funds and secretly sending them to a secret company called Merit Peak Limited, which is controlled by Binance’s founder, Changpeng Zhao.
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Fundamentals
Bitcoin price has been in a freefall for the past few weeks, ending the month of May more than 8% lower, capping its first down month since the start of the year. Bitcoin experienced its worst month in May since November 2022 as optimism around the US debt ceiling rally melted away. Ethereum, the second-largest cryptocurrency by market cap, also fell more than 2% in May, its worst month since December 2022.
The cryptocurrency market has been moving in tandem with major stock averages, which closed lower on Wednesday as investors shifted their focus to the House vote on the US debt ceiling deal. A divided US House of Representatives passed a bill to suspend the US debt ceiling deal to 2025 as agreed by US President Joe Biden and House Speaker Kevin McCarthy.
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Macroeconomic Concerns
Data by Coinmarketcap shows that the global crypto market cap has increased by more than 1% over the last day to $1.13 trillion, while the total crypto volume jumped 20% over the same period. Bitcoin’s dominance also increased over the day.
Bitcoin’s price was gaining on Tuesday on the back of greenlight of some retail crypto trading by Hong Kong. Hong Kong’s Securities and Futures Commission announced on Monday that it would allow retail traders to trade certain crypto assets beginning June 1 on registered platforms. Markets widely anticipated the move amid Hong Kong’s broader efforts to become a global crypto hub.
Even so, Hong Kong’s new guidelines are in sharp contrast with China’s ban on crypto trading in 2021, as well as the continued US regulatory crackdown on cryptocurrencies since the fall of crypto exchange FTX. The Securities and Futures Commission of Hong Kong (SFC) has already licensed two digital asset platforms, Hash Blockchain and OSL.
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