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February 24, 2017, 09:04:12 PM |
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Today BTC and the local fiat markets are "separate" but viable entities in currency exchange. . . There are two co-existing entities . Global and Local, . When when a localized currency system Such as fiat. Goes into distress. In theory, . With the current BTC system, The local individuals within a localized community can then jump up to the Global decentralized trade currency BTC in order to help protect their failing assets. They freely make their jump to a Global decentralized system, And can then work on economic repairs at home.
. . And in theory, If this currency rescue system reversed and the global BTC Began to collapse, It would at first seem that ones economy on a local level would become at par with BTC then BTC would begin to fall below par. At which time the collapsing global BTC community in that local region would then begin selling the failing BTC and fall back to a local fiat. (Some would not make it without hardship of course). I firmly believe This Global Local system may be a valuable tool in the future to try and save small distressed local communities like our Greece and Venezuela in the world today. Now as an added example, lets say If a local community ever successfully "pegged their gold to fiat" after a bad previous local collapse and they afterwards created a good working local fiat system (or any other type currency system) in their localized community, those citizens therein would then by human nature begin slowly selling their global BTC and then jump the Global Local air gap and sift yjrit assets back down to the local community system, . This two “separate currency system” is then a rescue device that works both ways. If the two markets are free "separate entities without ties that bind, I believe this total separation between the two systems is necessary for the system to work.
In th e future, .I see banks as being banks currently within separate local communities and online exchanges, as “online” exchanges, within the global community only,
I would hope that those within the financial system would keep all the localized community markets and local finance systems completely off the global BTC currency grid, the only way to jump the gap from local currency to Global decentralized BTC, should be jumped through an online exchange or personal one on one private exchange. . Yes I'm getting to the danger of the ETF proposal
Once you start tying these two separate systems together (Local and decentralized Global). where online finance becomes stock broker/online global currency exchange, or BTC/ETF , and all the other areas with regulations and rules that bind these two markets together. You defeat the rescue mechanism. Because, . . if they are all tied together and the global BTC system collapses, . you now have a problem at the local level of rescue. The Global takes the local down with it. And you have a world wide collapse of both systems when the gloal fails.. Any and all financial ties binding and blending the two currencies together defeats the backup rescue systems both provide.
Besides all this, Now to the proposed ETF. .If a localized market (such as the US stock exchange) badly wants to invest in the BTC phenomena, there are other air gapped means already in place for them to do so. Such as, . . If in the future a global BTC becomes widespread and stable. It will grow immensely in size, This growth will create hardware needs for mining and processing, . Those in the US stock market can already easlily invest in any digital BTC hardware companies. Anyone up for a (IBM,Cisco,Samsung) BTC future speculative legal ETF?
In my opinion, Tying together any local markets to this decentralized global system would create a scenario of the possibility of collapse in local markets subject to the global arena. In my opinion, Its not worth the risk it to do it,. .And once started, It begins a slippery slope in which more and more you eliminate the separation and hence the ability for system rescue at the cost of the individuals and their assets, . please dont approve this BTC/ETF
disclaimer, . I do not own stock in any afore mentioned companies, . . . . . yet , but maybe tomorrow if the system looks healthy
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