Why is the approval of Bitcoin ETFs controversial in the crypto scene?

After a long and hard battle, Bitcoin has taken a big step towards increased acceptance in the financial world. But in the crypto scene, the approval of the first Bitcoin ETFs in the USA is anything but welcomed.

The reasons for this can already be found in the “construction” of BTC. The largest and most important cryptocurrency in the world was once created in response to the global financial crisis of 2008 . Its anonymous founder, Satoshi Nakamoto, wanted to exclude the traditional financial system from his creation and prevent it from earning money from BTC.

More vulnerable to price manipulation?

But that’s exactly what will happen in the future, after all, BlackRock, the world’s largest asset manager, is joining in with its own BTC Spot ETF. This will be traded on the stock exchange in the USA and will precisely replicate the price of Bitcoin.

The resulting boom could also help other cryptocurrencies, such as Spoonge V2 , which are currently in the presale phase.

Differentiation was once the fundamental motto of BTC. It is not for nothing that the “money supply” of Bitcoin is limited to 21 million BTC. This artificial shortage is intended to prevent manipulation. Unlike conventional currencies such as the euro or the dollar, there is no central authority such as a central bank.

The distinction from the financial system is falling

Bitcoin is created by performance, but this is limited. While central banks can apparently print unlimited money as needed and desired, this is no longer possible with BTC. The unrestrained interest rate policy helped to cause the major global financial crises, and Nakamoto wanted to prevent that with his digital money.

But now the financial world is “hijacking” the star of the crypto scene and incorporating him into its financial instruments. Traditionalists and purists don’t like this at all. After all, they still remember the events from 2017 and 2018.

Is history repeating itself?

At that time, BTC futures drove the price of Bitcoin from around 1,000 USD to nearly 20,000 USD. When the speculative bubble burst, it took three years for the cryptocurrency to reach that limit again. It is quite possible that history will repeat itself, as the next few months will show.

Crypto exchanges with the lowest fees 2024