Bitcoin just took a major blow by way of the United States' Securities and Exchange Commission on Friday March 10th. Shortly after the US stock markets closed the announcement was handed down that the first Bitcoin ETF (Exchange Traded Fund) masterminded by Tyler and Cameron Winklevoss better known as the Winklevoss twins (Yes, the same twins who sued Mark Zuckerberg over stealing their idea for what became Facebook) would not be approved after a nearly 4 year process. This temporarily sent the price of Bitcoin tumbling. Why exactly ?
Well, if the ETF by the Winklevoss twins had been approved it would have been the first real major step in finally legitimizing Bitcoin on Wall Street and the global finance community. It would have also finally made a mainstream investment vehicle - An Exchange Traded Fund - that would have made Bitcoin easily accessible to millions of Americans through regular brokerage accounts and retirement accounts such as IRAs and 401(k)s. The ETF dismissal once again keeps Bitcoin in the shadows of the mainstream finance community as an exotic financial novelty product and keeps the average non-tech savvy investor from securely investing in it as well.
Bitcoin's greatest features are what are ultimately keeping it in the shadows - at least for now. As it stands today, Bitcoin is a decentralized payment system that operates independently of any government or central bank, people can exchange value on a peer-to-peer basis, without passing through any financial intermediary anywhere in the world. This means that the Bitcoin network does not reside in any given regulation, and can therefore be constructed to be agnostic to any jurisdictional rules. Basically, it's hard for any governmental entity to regulate and legitimize what they don't completely understand especially when there are credible implications Bitcoin and other digital currencies like it stand to totally upend or even replace current paper fiat currencies in the next decade or so.
So what now for Bitcoin? Well, that's literally the billion dollar question on everyone's mind. Although this was a serious step in the wrong direction for the world's largest & most valuable cryptocurrency - one thing is certain - Bitcoin & other digital currencies are here to stay for the longterm (Bitcon's down but definitely not out !).
If you want to know more about Bitcoin and other cryptocurrencies without any B.S. included please check out my lecture dedicated to the subject.