Winklevoss Bitcoin ETF Addendum

These are additional thoughts on ETF, good or bad, pros and cons:

  • An ETF could signal a surge of institutional buyers
  • If it becomes popular, more big money will flow in, likely pricing out small investors, coffee shop, pizza people possibly
  • ETF simply keeps the bitcoins in their depository, hence the velocity of bitcoins will diminish, hence the economy of bitcoin will slow down
  • Economy of bitcoin, meaning trading between people, paying for one person’s share in a dinner, buying murtabak, donating to a cause, will diminish
  • An Exchange Traded Fund – the fund is where they buy up bitcoins into storage and as collateral, so that people who want to invest in bitcoins yet don’t want to handle it can pitch in money. It is put up in exchanges, simply the stock market
  • So stock market people have quick access, which may have implications
  • Remember the 1998 crash, 2008 crash, and pitiful images of traders, brokers, remisiers slumping their head? – No, they don’t need pity. They caused it and many garden variety investors, retirees, suffered. Those brokers still had lots of commissions, bonuses, they have five houses
  • Since originally, the whole bitcoin experiment is to defeat them
  • To let the money flow back to the people, simply the people keep their own sunshine
  • Exchanges are regulated or government sanctioned, hence letting bitcoin the “tool of the occupy movement” may not jive well, hence may not happen at all in the USA
  • Many Western banks such as in UK, Australia, New Zealand, are blocking access to bank accounts for bitcoin purposes (see this post)
  • If the so-called free world market countries are doing that, then likely “the Others” will do the opposite and seems they are doing that and seems all the better for bitcoin
  • If the ETF is not approved, Winklevoss can make a different view and try to run it outside of USA but perhaps not them, since once a US citizen, you have FACTA and many other things sitting pat on your back
  • Financial centres such as Hong Kong, London (?), Japan could launch one
  • Perhaps an ETF outside western influence too
  • Regardless of approval or non-approval, bitcoin should simply soldier on


There was one report trying to find correlation between bitcoin and commodities, currencies, futures, derivatives – the conclusion was there was non. Gold does not affect bitcoin. Future derivatives of palm oil does not affect bitcoin. Bitcoin is in its own world. And that world is likely you. Bitcoin according to Vinny Lingham started as a commodity, proving people want it. The next phase is bitcoin as a store of value. Then finally, it would become a currency.

And bitcoin is a ticket. A ticket into Satoshi Nakamoto’s world.



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