What is Bitcoin’s Current Value Proposition

What is Bitcoin’s Current Value Proposition

Year to date Bitcoin is up over 60% and for the first time in it’s existence has proven to be a safe haven, which of course doesn’t mean it will continue to be that.

But why has it performed so well… the SEC has really cracked down on crypto over the last year. Coinbase (a large crypto exchange) received a Wells notice from the SEC, focused on staking and asset listing claiming that some crypto products are actually securities and need to conform to SEC regulations. A Wells notice typically preceded enforcement action.

The FTX failure really opened the eyes of regulators, being it’s their job to protect consumers.

Kraken is freezing incoming and outgoing wires from its crypto exchange.

Gary Gensler, the chairman of the SEC, said that Bitcoin is the only cryptocurrency that he felt comfortable calling a commodity, meaning every other cryptocurrency would be a security (including Ethereum).

Banks here in the US and other developed nations are strong, especially the large ones.

So why would people be buying cryptocurrencies.

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Timothy Sosnicki

Lead Field Engineer @ Carrier (Automated Logic)

1 年

I would take “not so crazy to think” as MAJOR progress lol, but I would like to point out that I disagree with a few of the statements presented as fact in this post. One, the idea that bitcoin is unregulated or even that it faces a great deal of regulatory uncertainty is not really accurate. Those descriptions may apply to cryptocurrency in general but bitcoin has clearly been set apart by US regulators. Current and former heads of the SEC and other agencies have categorically stated that bitcoin is not a security and expressed doubt that ANY other crypto is not. Since 2014 the IRS has made plain that bitcoin is considered property for tax purposes and as such, in general, all existing tax laws and regulations that apply to property that can be exchanged for value apply. To acquire and hold and transact in bitcoin is not much different than doing the same with gold. Second, I would do some research on bitcoin’s track record as a safe haven after the 2008 financial crisis, the crisis in Cyprus and Greece in mid 2010’s, the pandemic in March 2020, etc. The idea that this is the “first time” in its existence that it has proven to be a safe haven is highly subjective and there is a mountain of empirical evidence to the contrary.

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Tom Stadum

CEO at Fjell | Author of Tired & Rich

1 年

Good read ??

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