I am hearing about Bitcoin ETF from several days. It pumped the crypto market very well giving a reason to bulls to buy more. For those who don’t know about ETF, it is ‘Exchange Traded Fund’ and in simple words it will give investors the option of buying and selling their holdings in this exchange-traded funds to other investors via the stock exchange.
For bitcoin ETF, it will give luxury to investors for trading Bitcoins without the struggles of buying and storing it.
Now the main question is why I am saying Bitcoin ETF is not so important. This is because the reason behind the discovery of bitcoin was different . Bitcoin was invented to change the process of money transfer in easier and cheap way. But now 90% of investors and traders are taking it as only a way of investment assets. No one is giving importance to technology behind it.
Here we forget that Bitcoin got this much popularity due to its technology and not due to its price. It started with price less than a cent and now it is ruling the world just because it has a strong technology behind it.
Main stream adoption is more important than ETF.
For short term this will pump market but will not give the stability to the market which is very necessary for long term run. This stability will get only in main stream adoption of crypto currency. News like ETF will come and go in crypto but the main intention of crypto needs to be fulfill so as to get the stable and long lasting growth of market.
Me as an investor don't need a sudden but unstable growth in market cause such growth lasts shortly. As a community member I am seeing crypto as next generation technology and know its value. For this, community should believe in Technology and should promote good projects so as get our goal of Mass adoption.
In this post I also want to share some main problems in mass adoption in my opinion. I think SEC will also take a look in these points before approving ETF.
1. Volatility in market
As I said earlier 90% of investors and traders thinks bitcoin just as an investment assets and do not have faith on technology behind that. This makes a small news in or against favour of it can change the whole market sentiment (Bullish or Bearish). That’s why we have seen drops of more than 50% in crypto market in a single day making it highly volatile. Bitcoin itself fell down more than 60% in less than 3 months period. So firstly community must think it as a future technology not just as a investment assets.
2. Hacking incidents Of Exchanges.
Crypto Exchanges is the backbone of crypto Community. But due to recent hackings of top exchanges the question of security arises in front of new investors who wants to invest in its technology. Hackers had stolen millions of dollars through such hacking incidents. So before thinking about mass adoption we should think about the security related issues of these exchanges.
3. Fake ICO’s And Lack of Real Working Projects
ICO means Initial Coin offering is done by every Crypto project in initial stages so as to establish some funds for project. Many investors and Traders think it as investment which will give them Good return In short time Period. But again they don’t think about the technology behind the project. According a report more than 95% ICO don’t have a real working project and more than 70% ICO don’t come on any exchanges for Trading. This means they all went to FAKE list.
My Main moto behind writing this post was to remind the community about believing in technology and not in just price of it. As history showed us many times that a project having good technology behind it works long and lasts long as well. The best example of this is Steve Job’s Apple. Bitcoin will have a good future but for that we as a community have to work for its mass adoption.
Thank You for Reading my Views. I will also like to read your views in comments