The Bitcoin ETF Effect
The great debasement - Navigate the hype, secure your stash, and tune out the noise.
Not a financial advice
Does it even matter? Yes, in the long run.
The Bitcoin “influencers” pumping just hopium and farming engagement is disgusting.
It's hard to see how this would instantly create extraordinary demand for Bitcoin. Average moms and pops and casual investors aren't likely to rush into buying Bitcoin just because an ETF has become available. I haven’t heard anything from my social circle “Did you hear the Bitcoin ETF is coming? Oh boy, better start to save money and buy it instantly”.
Bitcoin requires quite a hefty amount of learning and also unlearning. It is so simple and stupid. Bitcoin's simplicity makes it look like a silly and naive solution, especially to those who can navigate the complexities of traditional financial systems. This simplicity, however, masks a profound depth and innovation that takes time, effort, and a willingness to delve into and understand.
Bitcoin is just a 15-year-old asset, which makes it very hard to grasp for the average person. Stories of the silkroad and how the super shadowy super coders got rich just by luck adopting a weird cryptocurrency make it harder to understand and grasp the true value and essence - “It is just speculation and a scam”.
Bitcoin ETF helps massively to demystify Bitcoin to the normies. Nonetheless, unraveling the myths and building a comprehensive understanding of Bitcoin is a journey that unfolds over time.
Implications:
Increased Accessibility and Exposure:
A Bitcoin ETF provides a more accessible way to FOMO, 10x easier than the setup on some shady crypto exchange…
Humans also run institutions, and they FOMO, too, so they can gain exposure to Bitcoin in a more regulated and familiar format.
Regulatory Legitimization
Hey, it's an ETF, so it can't be a scam, right?
Diversification:
For investors looking to diversify their portfolios, a Bitcoin ETF provides a way to gain exposure to the cryptocurrency sector without dealing with the technical aspects of owning, storing, and managing cryptocurrencies. Bogleheads.
Bitcoin ETF helps separate Bitcoin from the broader category of "crypto".
Yes, 99% are scams, pumps, and dumps, etc, I don’t care about “crypto.” Let people trade whatever they want.
Cement the number one status for Bitcoin.
Normies have difficulty separating Bitcoin from Crypto: “It is all the same”.
Top institutions and issuers of ETF won’t endorse “crypto” -95%? They will focus only on Bitcoin and will also educate Bitcoin ≠ Crypto.
Of course, in the long run, this will pave the way for smaller players to launch their own shitcoin ETF etc.
I dream and hope it will boost education and awareness. ETF could serve as a catalyst for a better understanding and appreciation of Bitcoin's value proposition over time. Buy a bit of ETF, hop on to the rabbit hole, self-custody…
Well, fidelity has had taps on Bitcoin since 2015? Anyways it’s much more convincing when they write about Bitcoin, than some fucking ruffle fish on the internet? In the past, education was solely on the shoulders of Bitcoin enthusiasts.
The ETF's Market Impact
This feels a little like buying the rumor and selling the news case. The ETF is on its way, of that, I'm sure. But one wonders, is the current demand driven more by macroeconomic factors than ETF speculation?
It’s all about supply and demand. 88.5% of the Bitcoin supply hasn't moved in the last three months.
Is a test of conviction coming? Sure.
On top of that, Bitcoin halving in April 2024, and the ETF’s launching in Q1 2024?
Let’s not forget why the big financial institutions want to issue this ETF. They want to suck as much fees as they can. They cannot be sidelined any longer.
ETF had a positive impact on gold for a while. Who wants paper gold? Who wants paper Bitcoin in the end? ETF legitimized gold as an “option,” and the same will happen to Bitcoin. I am not too worried about centralization. Initially, they flock to paper Bitcoin, but as appetite and knowledge grow, so does the craving for the real deal.
Stack sats, cold storage, and fuck off.
Conclusion
You have to own assets, be it stocks, commodities, Gold or Bitcoin. Our politicians will ensure that our currencies keep debasing, and the only way to escape is to own assets.
In the face of this “great debasement cycle” Bitcoin stands out with unparalleled properties and a compelling narrative for the future.
Stay safe and stack sats,
Sources:
https://x.com/DigitalAssets/status/1721573336558280808?s=20
https://www.fidelitydigitalassets.com/sites/default/files/documents/1110227.1.0%20Fidelity%20Digital%20Assets%20-%20Revisiting%20Persistent%20Bitcoin%20Criticisms%20%2811.02%29.pdf
https://x.com/ShireH0DL/status/1721394857283911936?s=20
https://x.com/BitcoinMagazine/status/1720107706416071029?s=20
https://x.com/BitcoinNewsCom/status/1720531485004849582?s=20
https://x.com/billfour/status/1720585565278462445?s=20