At least that is what money management firm VanEck decided to do.
Just a day after calling Bitcoin a "fad", VanEck filed with the Securities and Exchange Commission for a Bitcoin ETF.
How's that for changing course?
Last Thursday, a spokesperson for VanEck said:
"Bitcoin will likely never replicate or replace gold as a safe haven asset due to fundamental differences between the two. Bitcoin and other digital currencies are a fad that has attracted the attention of programmers, speculators, and early adopters."
And then this:
"It is my opinion that governments will not allow digital currencies to reach the critical mass needed to challenge the utility of fiat currencies, like the U.S. dollar."
And then also this:
"At best, digital currencies may eventually occupy some middle ground as a niche product and at worst they become a failed experiment that ends in tears."
A day later, they were filing for a Bitcoin focused ETF.
The entire excerpt can be read here:
https://www.cnbc.com/2017/08/14/investment-firm-vaneck-calls-bitcoin-a-fad-then-files-for-bitcoin-etf.html
They are not alone.
This kind of sentiment and rhetoric kind of goes along with what several in the finance industry have been suggesting.
They are skeptical of Bitcoin's long term implications but they are seeing it as too good of an opportunity to not get involved with in the present.
Kind of like saying, well we don't agree with the long term thesis here, but we think we can make some money off it here in the short term.
Some interesting thoughts...
After reading about this earlier this morning, some interesting thoughts came up in my head.
The main one being about his statement that he doesn't think governments will allow Bitcoin (and the crypto market) to reach the critical mass it would ultimately need to get to in order to challenge the current financial system.
He makes a very good point, in that if governments decided they no longer wanted Bitcoin or any other cryptocurrency to start gaining a foot hold in their country they could simply outlaw them.
Then if they deemed the technology was truly the wave of the future, they could design their own virtual currency that is used by their citizens.
A few of those done by major countries and confidence would be shaken in the space possibly beyond repair.
I don't want to get into all of the specifics of that here, but instead leave it open to my readers.
What do you all think about that?
Is that all it would take for Bitcoin to die a quick, painful death?
Do governments ultimately hold all the cards still?
Let me know in the comment's section below.
Stay informed my friends.
Sources:
https://www.cnbc.com/2017/08/14/investment-firm-vaneck-calls-bitcoin-a-fad-then-files-for-bitcoin-etf.html
Image Sources:
http://hollandfintech.com/regulatory-notes-on-bitcoin-and-other-cryptocurrency-derivatives/
http://www.valuewalk.com/2016/07/if-you-cant-beat-em-join-em/
https://medium.com/tag/cryptocurrency
Follow me: @jrcornel