Bitcoin Forum

Cryptocurrencies are often compared with stock markets they do share many attributes but are different at the same time.

Stocks are a big thing , therefore when they apparently are going to include Bitcoin cash and litecoin I do think it would be a big step for cryptocurrencies . This would also clear out the air that it's not a hoax , I have seen people using stocks but at the same time they are scared of using Bitcoins , those people might now be benefited .

https://fortune.com/2020/07/20/bitcoin-cash-litecoin-trade-public-stock-market-first-time/ (https://fortune.com/2020/07/20/bitcoin-cash-litecoin-trade-public-stock-market-first-time/)




Don't worry Bitcoins is already in the list and at the same time the fact that new cryptocurrencies are being added means we have had a great market support form the Investors.



Investors usually are barred from selling their own cryptocurrencies for a short while .

What I don't get is :

Why buying Bitcoins from these stock markets even exist? People don't have the freedom to sell for a short while plus why do you even need a middle man ?

Is this :
- lack of education regarding Bitcoins and wallets
- trust with the concerned company

Should we even buy Bitcoins from a stock market ?
- I personally would never do that since it will more or so compromise my freedom for a short period of time and what if at that time we might be benefited ?

What are your thoughts on this ?
-Is it essential , should it even exist?

( This in no way does mean the news is not good , since it would mean that the cryptocurrencies will get more exposure to the general public )

Well I don't see it as a very optimistic news about crypto market. It's just a company is leveraging the name of cryptocurrencies to make money as a mediator. I believe it's the lack of knowledge about bitcoin wallet and related technologies is fueled the launch of such products.

When people can easily buy bitcoin and other cryptocurrencies from the market and sell them according to the wish, why do we need to have a bitcoin share and a middleman with restrictions to sell!! That sounds bad news to me but a good business decision by greyscale!

It's not going to help crypto market in any way! But probably raise some awareness among the common public. But it seems bitcoin cash will reap that benefit instead of real bitcoin!

"Grayscale Investments, a New York firm that makes cryptocurrencies available in the form of stocks, announced on Monday that regulators have given the go-ahead for the sale of two new cryptocurrencies to the public."

"One of the newly listed stocks will represent shares of Litecoin, one of the oldest cryptocurrencies after Bitcoin, and the other is Bitcoin Cash, a controversial spinoff to Bitcoin launched in 2017. They are respectively the eighth and fifth biggest cryptocurrencies by market cap, according to Coinmarketcap."

This can be very interesting for both cryptocurrency traders and stock market traders. The combination of these two markets looks very interesting and profitable, both sides can benefit from this.

The thing is, there are people out there that want to take advantage of bitcoin's volatility, potential price rise, and it being a potential market hedge, who don't care about stuff like self-custody and privacy. The people who will use this are simply the typical investors and traders.

While I'm not a fan of it, whatever. If some people want to use these investing instruments, let them. At the very least, we're at least getting more market liquidity, which is always a good thing.

I do agree that we really need more investors in crypto space, we almost ask the questions where are should get all the money that needed to push the price to it's next bull run? And and we can see there are a lot of predictions that the price can go as high as $70K. I would say that it is a necessity for the next bull and then we will see how it goes after that. They could be part or willing participants of the next cycle for all we now.

Investors who have been living traditionally won't commit that much risk directly purchasing cryptos. While in the stock market, if there's a way that they can buy it through it, they'll choose to settle on that way which they think is safer.

Before there's the vice versa through Abra but it's been removed. The other way around might be implemented soon.

I think that this Grayscale investment fund doesn't offer actual cryptocurrencies for the investors to purchase.
This seems close to the BTC future contracts or the CFDs.The investors are just buying contracts,stating that they have bought BTC,while in reality there's no exchange of BTC between the fund and the investor,so the investors are just buying a promise.
Cryptocurrencies aren't stocks and they never will be.Viewing crypto coins as stocks is kinda toxic for the crypto industry and emphasizes the "casino capitalism" perception of the crypto markets.
More people will view crypto markets as online casinos and crypto trading as gambling.

I mean, I don't disagree, but the cryptocurrency markets was pretty much considered gambling and a casino for since forever now. Coinbase listings alone in itself is pretty much a casino lol.

Why such hype?

Grayscale Investment is a brokerage house that means they can sell stocks and shares. They have been authorized to sell cryptocurrency in the form of Stocks. Every stock has a locking period and the same applies to cryptocurrency.

The cryptocurrency market is highly volatile than the stock market and with the clause of locking period how many investors do you think will invest in them through this institution.

It is just another way to make money by Financial institution like this one when the stock market is getting saturated.

One of my main concerns with things like this is that it pushes or encourages more and more people toward centralized usage of cryptocurrency rather than how how it was originally meant to be used.
If you have most of a cryptocurrency supplies accumulated in one or few addresses, or addresses controlled by few centralized & connected entities, the cryptocurrency will be vulnerable to things it's trying to solve or prevent.

I will actually prefer to hold long-term on cryptocurrency that has some sort of predictable & decentralized control of coin supply.. . Something with advanced decentralized ecosystems

Well, this is a good news to me on the following grounds. The stock exchange which is heavily regulated by SEC have accepted the market assets of altcoins, that means they have come to stay. Secondly, listing individual coin on the stock exchange means they represent individual asst class like Amazon, Fb, Tesla etc.


These are the reasons why i think this move is a great one and as such it should excite crypto enthusiasts. Though, there will be regulations on the crypto assets.

More "oldschool" investors don't want to manage their own keys, and they don't trust half-regulated exchanges, so they'd only invest in BTC on a platform which gives them what they got used to. From a point of view of a hardcore Bitcoiner, companies like Grayscale aren't needed, but the people who use them aren't hardcore Bitcoiners, they are just mainstream investors.

But Bitcoin doesn't care who and how uses it, and neither should we - our duty is to warn newcomers about the dangers of centralization and middlemen, but it should be their choice to make.

They're probably just riding on crypto's coattails. They aren't really looking towards cryptocurrency as it is, but rather just a medium to offer success towards their market. The only factor this could bring is probably the spread of info regarding crypto, but let's be real, in the realm of those investors, who doesn't know about crypto at the very least right? They probably don't know much about it, but they should know at least something. And if they were really interested in investing in crypto, they wouldn't wait till now for stockmarkets to welcome cryptos.

I just hope that for anyone that discovers crypto through these stock markets, they're also able to understand how the system that they introduced fails to give the essence of what crypto really is. The public stock market does consider it as it is, a stock with how they want transactions to undergo after all.

At the very least, it is an option. Some other people might prefer it over other ways to buy and sell or trade Bitcoin. And also, we have to take note that Bitcoin isn't strictly the peer-to-peer electronic cash system anymore. It may be sad but it is what it is. Bitcoin has somehow evolved into a kind of traded asset.

And if you equate Bitcoin with freedom, that's for you and me and a handful of others. It may not be so to the rest. Traditional investors getting into the market are not here to savor the freedom that Bitcoin brings forth; they are here to make money. They are not here for the philosophy. Neither are they here for the vision nor the revolution nor to sort of disrupt the obsolete financial system. They are here to simply increase their wealth.

I would prefer if bitcoin is a mode of payment instead of an investment, this is rather attracting but at the same time concerning because it can be exploited in many ways, one example is an elaborate inside trading where you use bitcoin as a scapegoat. Bitcoin does not give out dividends so I do not think that being part of stock market is viable, maybe staying at forex is better.

This is ridiculous. Bitcoins and cryptocurrency in general are made to be decentralized and as a digital currency alone. If a currency would be traded on the stock market, wouldn't it be Forex trading? (in which is also a different topic).. Also, who would even buy crypto on stocks? It just doesn't make any sense nor any importance nor correlation at all. Many might find this a much secured way to invest on crypto, but they are only those whom aren't fond of the main idea of crypto alone.


Indeed. Even bitcoin doesn't have it's centralized company or share holder and buying it from stocks would only be useless lol

Bitcoin is built the way it is. It's already all-in-one. It is really money itself, you can whatever you want, not only mode payment, that's why Bitcoin is the best and why Bitcoin is still here.
We should also not hate those people who are only buying Bitcoin because they want to invest there or some people thought buying Bitcoin is just for easy money.
Speaking of stock markets and cryptocurrency, for me, the only similar on these two is how we can make money on these, like trading, or investing.

By March 10, 2020 Grayscale Bitcoin Trust (GBTC) issued 311,309,400 shares which is equivalent to 300,619 BTC or roughly $1.5 Billion worth of bitcoins at the time, so they are not small players in the market. Source : https://news.bitcoin.com/grayscale-bitcoin-trust-slides-30/

It is with regret that I see that they are exposing their investors to BCash now, because we know it is not the real deal and investors will probably opt for the cheaper BCash now, thinking that it was the real deal. (BTC)  ::)

I hope Grayscale Bitcoin Trust will educate their investors with the difference between Bitcoin (BTC) and BCash (the wannabe Bitcoin)  ::)

More important about the happening today on Bitcoin is it gains more popularity than ever which is good for the whole crypto industry because this is bitcoin we are talking about, not just some ordinary altcoins. Let's hope that this kind of news will continue for BTC so that the negative impact which was created by those scammers will soon vanish.

To be honest, I don't really see scams vanishing anytime soon or ever. Just look at how dollars are, do you see scamming dwindling? No, but with the semi-anonymous feature of Bitcoin, it's in fact easier to scam than any fiat. I don't know if this news is a good thing or not because people using Bitcoin in a public stock market means that they don't care about their identity (which I think a lot doesn't anyway) but this also means that some investors might get introduced to cryptocurrency too.

I don't like SEC due to all the troubles they've been causing to the crypto market, but I do agree when they say things like this (https://www.wired.com/story/sec-ether-bitcoin-not-securities/). It's about Bitcoin not being a security, not being like stocks and bonds. Indeed, there's always something standing behind the stock. It can be houses, corn or whatever else, but it's a real product. So for Bitcoin to be stock, it would have to represent a certain product. Some altcoins do things like this (I mean tokens), but Bitcoin is itself the product, not some financial representation of it. So I don't think stock exchanges should offer trading Bitcoin or that Bitcoin should be regulated like stock.

Just as you said in your statement in the OP :

This alone could support your doubt on Bitcoin investment in a form of stocks.

There are people who feel safe buying shares in company's the offers the trust in a form of stocks. Most of them might have been less educated on basic fundamentals of crypto/Bitcoin and wallets like what you have mentioned. Or, just want to have a convenience in making profit from a highly volatile asset.

Nevertheless, Grayscale Investment was smart enough to add these popular cryptos as a form of stocks, after they noticed the volume of trades in the leading crypto trading platforms.

Additional Publicity and Additional Liquidity.

I think this is are the benefits of this since some of the stock market traders doesn't either knows cryptocurrency but don't want to engage or they don't know crypto at all. Either way, this is beneficial for those traders and investors since they know crypto as another form of investment and not a currency (unfortunately).

This move isn't necessary TBH but since it is there already and it has been done, lets just be thankful that they've added crypto in stock markets.

Pretty cool to see Litecoin being named one of the stocks they're getting into, I mean, yeah it's an altcoin and Charlie Lee left it (but not the Foundation) and I've always held on to my few LTC as an alternative way to move my BTC (exchange, then send, always cheap and fast for sure). Good for LTC:)

The only reason we might not see a huge rally in litecoin is because of the reason Charlie Lee publicly accepted that he dumped his coins and made a huge profit and any investor who is wise enough especially fund houses will not find that appealing to invest in it even to pump the coin but for fun there are many coin out there including doge.

This is subject to the ease at which i can invest and the transaction charges they provide, if these ventures allow you to purchase bitcoin at a much lesser fees and faster why not. To be frank it will not compromise my freedom as i will be comfortable using these regulated markets than sending money to some random exchanges and then verifying my identity hoping that they will not misue.

So far, in my area there are many people who think that Bitcoin investment is the same as investing in stocks. Yeah, maybe this depends on each person's knowledge. And you are right that in the investment world, stock markets are still king. The emergence of Bitcoin and other cryptocurrencies actually become pros cons which until now has not been resolved. Many people still think that Bitcoin and cryptocurrency are not real investments, they don't even think that crypto is safe for investment. And if it is in accordance with this news, this is a very good progress. However, will this news really affect the thoughts and considerations of stock market investors to also invest in Bitcoin?

It is more likely trust on the platform.  More or less people who are very familiar with stock market will always plays with it and more probably shy away from platform that they are not used to.  Those who knew cryptocurrency market will not buy into this scheme but those who are already trading in stock market will see this as an addition to their option.


Well, we have known a better market where we can take advantage of the opportunity offered by cryptocurrency,  why would we shift platform and be restricted?


It is for those who wanted to take advantage of cryptocurrency specifically Bitcoin in that platform.  In business,  it doesn't matter, all matters is if there is profit to be gained then why not.

It is not necessary. Does it have to be like that? Of course not.

But the market is now being offered to the largest clientele possible that is why it is now being offered in the traditional stock market. This does not mean anything except that it is now being made available to people, stock traders particularly, who used to play within their own old playgrounds only.

This is considered growth if what we have in mind is attracting more cryptocurrency buyers and traders.

I can't say right now if it's necessary. Although this will not be a problem, some people may have problems. I doubt if everyone in the public stock market is aware of Bitcoin or cryptocurrency. If this happens it will be a very pleasant thing for many.

The best way to fight those fraudsters either online or offline is to educate ourselves regarding any investments.
There are lots of people who always believe any offer to them are legitimate.

As people become suited of knowledge, they become more careful to invest.

And those fraudster will be lessen because scamming will be really hard to do if people are intelligent enough to avoid and protect themselves from frauds.

I think it's time for public stock markets to welcome cryptocurrency now. Cryptocurrency is currently making waves around the world. Now is the time to add to the public stock market. If this happens then a link will be created between the public stock market and the cryptocurrency market. This will create a relationship between the people of the two markets.

Uh, yeah....I think I'd rather own cryptocurrencies outright, in my own wallet, and not pay a premium for a middleman that doesn't need to exist.  The article also states that Grayscale "has found a niche selling [their offering of crypto] in the forms of shares" but it remains to be seen whether they're going to have any success in getting people to buy those shares. 

Institutional investors might have some interest in stocks like these, but for the average Johnny Lunchbox on the street, he'd be far better off just buying bitcoin/BCH/LTC from a crypto exchange and holding it in a secure wallet.  Definitely not stocks I'd want in my portfolio.