Hello everyone, I hope you all are doing well. I am here to share my participation in the Steemit Engagement Challenge season 15 week 3. This week contest for something new to me but I have a little knowledge about it. After I read about this, this was an interesting & informative topic for all of us.
What is a Bitcoin ETF, and how does it differ from owning Bitcoins directly? |
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Bitcoin ETF is a modern and new way of owning Bitcoin. ETF stands for Exchange-traded fund. In this type, we own Bitcoin without owning it completely. Let me explain to you, how?
Here we buy the shares of Bitcoin. It is as simple as buying shares in big companies, properties, stocks, and many other things. We are buying the share of Bitcoin here, but we are not the complete Holder of it. We can't withdraw, or sell out with our won wish and well. The profit and loss are dependent on the movement of BTC, if the price goes up we get profit and if goes down we are lost.
While on the other hand direct owing BTC is quite different from it. If we own BTC directly we are the sole owner of it. We can do whatever we want with that. Selling or withdrawing the funds, all the things are in our hands. We have complete ownership of it. We can buy it on many exchanges available these days. Mostly people then transfer it to their digital wallets and save it there.
How can the approval of a Bitcoin ETF by the commissioner of the American Stock Exchange SEC influence the cryptocurrency market? And why did it fail just after this approval? |
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The approval of Bitcoin ETF by the commissioner of the American Stock Exchange SEC will have too much positive effects on the entire crypto market. Bitcoin will become a more strong and stable project. Becoming stronger in Bitcoin means, a green signal for the entire crypto market. People's trust in crypto will increase.
I believe we can see a huge rise in BTC price if BTC is approved by the SEC. More investors will enter the market because This news will make BTC and Crypto more famous.
This model can fail due to various reasons. First people May have great expectations from this fundamental news, if BTC doesn't perform well, maybe the trust of people BTC decrease. The excitement of the people will get low, we can't see huge liquidity in the market.
The second reason in my mind is the manipulators in the market. Whales may manipulate the market, and sell all their stock at high prices. A huge sales pressure can cause a dump in the market.
How could the approval of a Bitcoin ETF by a financial authority such as the SEC contribute to the legitimacy and institutional recognition of cryptocurrencies? |
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We all know that any fundamental news in the market influences the market. Good news has positive effects while bad news has negative effects. Bitcoin ETF approval from the commissioner of the American Stock Exchange SEC is of course huge news. It will have too many good effects on Bitcoin and the entire crypto market.
Let's talk about BTC legitimacy, associated with this news. Bitcoin will become more popular after approval from the SEC. More people will trust Blockchain technology, and hence we will see huge liquidity in the market. If too many people are trading on BTC, every day we will have billions of dollars of trade on this project. Such a huge trade on it will of course its legitimacy.
Those who didn't trust digital assets before will now invest their capital in Crypto. Of course, the SEC is an authentic and trustworthy origination. They will never approve a sponge or fraud project.
How might the introduction of an SEC-approved Bitcoin ETF interact with the decentralized governance of the STEEM blockchain, and how might these two approaches complement or diverge investors' perspectives on asset management? digital assets |
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Let me tell you first the difference between centralized and decentralized systems. A centralized system is one being controlled by government authorities and state officials, while on the other hand Decentralized system is a completely sovereign and free one. No involvement or influence of any external bodies. It works on Blockchain technology. All the things and data are just between you and the Blockchain.
For me, ETF has no linkage with the decentralized system of STEEM. If its decentralized governance is being affected by ETF or other things, I think it's not decentralized then. It will be called a centralized system then.
This is true that Approval of BTC ETF from the SEC will affect the market, but I don't think it can affect the internal governance of other cryptos. Yes, the reward mechanism may change if the price of steem increases in the future.
Now we have only a reward mechanism in Steem, the Steemit platform gives rewards to content creators, In the future, there might be a mining system for Steem too, or other changes may also happen, but is not a must that these things will happen.
This was all about my participation. I hope you all like it & share your valuable comments. I would like to invite my friends @drhira, @drasma, @shanza1, @msharif to share their participation & review Bitcoin ETF (exchange traded funds). Best of luck to all the participants.
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
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Thank you for your support. We will support burnsteem25 in each post.
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Your breakdown of Bitcoin ETF and its comparison to direct ownership is crystal clear. The potential impact of SEC approval on the crypto market is well-analyzed and your insights into possible reasons for failure add depth. Your perspective on how SEC approval contributes to legitimacy and institutional recognition is spot-on. Lastly your thoughts on the interaction between an SEC-approved Bitcoin ETF and the decentralized governance of the STEEM blockchain show a keen understanding.
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Thank you so much for your kind words. I am glad that you like as I know you have more knowledge about crypto world. Best of luck for your participation too.
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You always wrote so well through the point and you are post is always very motivating for me specially so because the main reason is you always you so simple language and keywords that's the main thing that everybody should under stand what you are writing so you are doing great job best of luck
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Thank you so much dear, I am glad that users will understand anything new from my post. Best of luck to us for our participation.
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You're welcome inshallah will succeed
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Greetings friend,
You explained Bitcoin ETF and how it's different from owning Bitcoin really well. You also talked about how SEC approval could affect the crypto market and gave reasons why it might not happen. Your point about SEC approval making Bitcoin more legitimate and recognized by institutions is right on. Lastly, you mentioned how an SEC-approved Bitcoin ETF could impact the decentralized governance of the STEEM blockchain. Your understanding of all these topics is impressive.
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Thank you so much for appreciation & kind words. I know you have great knowledge about crypto market as you always share an excellent post about each topic.
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You got highest score and that's the reason of having best content sharing and your participation challenge is amazing and fabulous 😍🤩🤩 wishing you success
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Thank you dear friend. In Sha Allah you will also get high score in the contest. Best of luck for your participation too.
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You are giving one of the most positive news that if Bitcoin exchange trade funds would be approved than definitely it would attract more and more investors with the passage of time as well as it would be a good way to increase the price of Bitcoin I wish you good luck in this engagement challenge in which you tried to answer all the questions very well
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Dejaste muy clara la diferencia de poseer los BTC en tu billetera digital que invertir en acciones que negocian su rendimiento sin poseerlo en parte.
La aprobación de los ETF de Bitcoin significan una sueño cumplido que tiene 10 años. Por supuesto esta decisión fortalece y legitima al BTC como activo con valor por lo que esto se considera trascendental para el mercado de critomonedas en general.
Ya para mayo Ethereum espera la decisión sobre sus ETF, ya las puertas están abiertas a es decisión y será otro puntal más para reforzar este mercado que no solo cuenta ya con la primera criptomoneda del mundo sino que pronto se integrara la segunda más importante.
Es un gran momento para el cripto mercado, los detractores nunca lo podrán ver, pero estamos en un antes y después, no nos podemos imaginar la gran barrera que BTC ha eliminado.
Se esperan grandes cosas para el futuro del cripto mercado.
Saludos y muchos éxitos.
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