Here Come The Corporate Elites To Take Your Cash

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Here Come The Corporate Elites To Take Your Cash

Interesting that for the past 10 past years many across the world have been cautioned about investing in cryptocurrency with some nations going to extreme lengths to criminalise and completely regulate the cryptosphere. Notwithstanding that there are significant dangers in the sector with honey pot scams, pump and dumps and a broad range of other get rich quick founder, leave you broke style of investments.

So with that in mind it made sense to the masses that cryptocurrency was bad and needed to be tamed because for all they knew it was being used to purchase drugs which was thrust into mainstream and centralised media with the unmasking of Ross Ulbricht who operated Silk Road infamously known as a website to purchase drugs.

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The mainstream media and centralised media outlets would have you quickly believing that cash or other payment forms such as sex, goods or loans have never been used to facilitate the trade of narcotics or anything deemed illegal. For many, seeing this angle used was a little confusing but it worked for the majority and put a lot of people against the emerging industry.

A debate can be had surrounding the need for regulation for scams and decentralised finance but once you dig deeper there are already cyber crime and fraud laws in place. If we delve deeper again and compare it to current fraud such as the Nigerian Prince or You've won $30million scams, Australians alone have lost $851 million to this type of financial crime and that's just in 2020 source The UK also estimates 2.3 Billion pounds throughout the pandemic have been scammed source and lets not forget a large portion of people being scammed probably won't report it to authorities for whatever reason.

Much like our favourite emails Honey Pot scams are designed with the same construct, to catch low laying fruit. With absurd return on interest (ROI) they capture the targets they are trying to get. Most of us who receive an email about winning a lottery we didn't play for an astronomical figure, or a Nigerian prince writing to us would know it is fake. The scammers know this and they know we are not their target so they want to screen us out and focus on who they can get with apparent great success.

So much of the financial crime being committed on block chains is not new and doesn't so much require regulation but investigation and enforcement of current financial fraud legislation.

Exchange Traded Funds

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The above mentioned has no correlation with Exchange Traded Funds (ETFs) which are legal investment opportunities. I am also not here to debate the legitimacy of cryptocurrency or whether or not it will usher in a new era of financial services.

But what I do want to point out is the total and utter irony of the U.S. Securities and Exchange Commission, whom have fought Bitcoin tooth and nail only to now be approving ETFs for Americans. For those that don't know if you buy into an ETF you do not own the Bitcoin. You are gambling on its price and in effect it is a legalised form of Pump and Dump. You can read more about what a Bitcoin ETF is Here.

I was reserved in yesterday's video in relation to the ETF as I didn't particularly think it had any impact on me or Australia as Aussies are able to jump online and purchase, trade, sell Bitcoin in 30 seconds flat on ASIC approved exchanges. But that was until I found out that Crypto ETFs are coming to the ASX source. Which in my opinion is just highway robbery and misleading Australians. Why on earth would someone purchase an ETF when they are able to purchase the real thing and hold that asset for as long as they like?

Who are they trying to fool?

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Not only is an ETF more expensive and encompasses a lot more fees there are ongoing costs and the risk is far greater than purchasing the asset itself. We can already see the Bitcoin sector react like a shark infested tank circling its prey rising from $US43,000 on October 1st to $US64,000 today (at time of writing).

On top of that all these corporations have been amassing Bitcoin for a few months spending millions each dip building their own low cost asset base. There will be no loss to them if your gamble doesn't pay off and with cryptocurrency 100% legal in Australia, who are the low laying fruit they're trying to catch?

Images sourced through CANVA PRO Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services

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10 comments
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The only thing I have changed recently is shorting hive for Blurt.

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Interesting, do you think blurt will continue to grow and be worth the investment into the future?

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They have liquidity pools on par with the Diesel pools. So i don't see any real difference between it and hive, aside from no communities or tribes yet. They just us hashtags for their tribes and I prefer just 1 token personally anyway.

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People who believe that an ETF is necessary for investing into Bitcoin clearly don't know enough

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Why on earth would someone purchase an ETF when they are able to purchase the real thing and hold that asset for as long as they like?

The only upside is for those who have access to margin so they can get funds quickly into crypto for trades and not long term holds. So if they feel a sector like tech is going weak, they can change to BTC and etc.

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Would it still work with Bitcoin ETFs which require cash settlement?

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Yes if you have a margin account. This means your stocks or funds in your account is collateral for the trades. So you don't have to wait for the ETF to settle before using the funds.

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