U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler Sees Irony in Spot Bitcoin ETF Approval
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, discussed the irony of spot bitcoin exchange-traded funds (ETFs) in an interview with CNBC on Friday. The securities regulator approved 11 spot bitcoin ETFs last week.
Centralization and Traditional Means of Finance
Gensler highlighted the irony of the situation, pointing out that bitcoin's creator, Satoshi Nakamoto, envisioned a decentralized system. However, the approval of spot bitcoin ETFs has led to centralization in the market. Gensler emphasized that this approval was about centralization and traditional means of finance.
Increased Centralization with Spot Bitcoin ETFs
Prior to the approval of spot bitcoin ETFs, investors could already invest in bitcoin through major brokerage houses. However, with the introduction of exchange-traded products, the market has become more centralized. Gensler noted that there is a significant level of centralization in the market due to these developments.
SEC Approval Does Not Endorse Bitcoin
While Gensler was the deciding vote in approving the 11 spot bitcoin ETFs, he made it clear that the approval does not constitute an endorsement of bitcoin itself. Instead, the approval is for the exchange-traded product, which allows investors to invest in the non-security commodity known as bitcoin.
Warning for Investors
Gensler issued a warning to investors, emphasizing that bitcoin is a highly speculative and volatile asset. He also highlighted that one of its use cases is illicit activity, including money laundering, sanctions evasion, and ransomware. Gensler urged investors to be aware of these risks associated with the underlying asset.
Bitcoin as a Speculative Store of Value
Gensler described bitcoin as a speculative store of value but questioned its use as a payment mechanism. He stated that it is not widely used for everyday transactions such as buying cups of coffee. Instead, its primary use as a payment mechanism is for illicit activities.
What are your thoughts on SEC Chairman Gary Gensler's statements? Share your opinions in the comments section below.
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How To
The best way online to buy gold or silver
Before you can buy gold, it is important to understand its workings. Gold is a precious metal similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They aren’t exchangeable in any currency exchange. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Each dollar spent earns the buyer 1 gram gold.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. If you want to purchase gold directly from a dealer, then a few options are available. First, your local currency shop is a good place to start. Another option is to go through a reputable site like eBay. You can also purchase gold through private online sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. That means you would get back less money from a private seller than from a coin shop or eBay. This option can be a good choice for investing in gold because it allows you to control the price.
You can also invest in gold physical. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank can provide you with a loan to cover the amount you wish to invest in gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks tend to charge higher interest rates, while pawnshops are typically lower.
Another way to purchase gold is to ask another person to do it. Selling gold is easy too. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
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