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The last few days have left word of some encryption traders, some of whom had fun shorting Bitcoin (BTC), Ethereum (ETH) and other important BitMEX coins. The Bitcoin Cash Hash Wars has been blamed for the decline of Bitcoin (BTC) from values of $ 6,300 at current levels just above $ 5,500. This is a 12.6% drop in less than a week.
The probability of approval of Bitcoin ETFs is reduced
The odds that the American SEC watch the entire debacle from a distance are very likely. Above all with 9 outstanding Bitcoin ETF applications of Direxion (5), GraniteShares (2) and ProShares (2). There is also the ETF sponsored by CBOE that everyone was certain it would be approved. Their fate is now poised after last week's events.
But Bitcoin Cash Hash Wars have shown that having an ETF supported only by Bitcoin could be very risky. This is due to the fact that three individuals – Roger Ver, Jihan Wu and Craig Wright – can bring the crypto market to their knees.
Therefore, we could also propose that the SEC ETFs be revised to include a "basket" of digital resources rather than just Bitcoins.
But what is an ETF?
An Exchange Traded Fund (ETF) is a tradable stock that tracks a stock index, commodity, bonds or a basket of assets.
This means that other digital activities can be included in the aforementioned basket of assets. They can also be stored through custodial service providers such as Bakkt, ICE and Coinbase
But why include XRP, XLM, NANO, ADA and TRX
in the first place, the five digital resources of XRP, Stellar (XLM), NANO, Cardano (ADA) and Tron (TRX) are all pre-mined. This means that their networks can not be held hostage by miners.
Other pre-mined digital assets that may be included in the basket of assets include Binance Coin (BNB), EOS, MIOTA, XEM, to name a few. What we are doing here is simply underlining this a Bitcoin ETF would have better chances of approval if it were revised to include coins that are not under the mercy of the miners.
The Ripple CTO, David Schwartz, had warned us about the faults of the work trial networks and miners. He had stated that:
80 percent of the Bitcoin blockchain mining business is centralized in China, despite the country's ban on digital assets. This exposes her to greater risk of being manipulated by a single sovereign government.
Some experts even suggest that, in the worst case scenario, Bitcoin and Ethereum blockcoin miners could use this to their advantage – conspiring to rewrite the blockchain story through a 51% attack that leads to unverified verified transactions and allows fraud.
secondlyand, in particular, by observing XRP and Stellar (XLM), it was noted that these two digital resources maintained their value during the last days of market chaos. In fact, XRP is now in position number 2 based on market capitalization. XLM is firmly in number 5 ahead of EOS.
In the case of Tron (TRX), the digital asset is thriving in its ecosystem provided by the decentralized Exchange. TRX is sure to decouple from Bitcoin over time.
NANO and ADA are equally brilliant projects. NANO transactions cost nothing and the network is incredibly fast. Cardano (ADA), on the other hand, is one of the few projects that is actually decentralized. BTC and BCH have shown that their networks are practically centralized through the power of miners.
In conclusion, last week showed that the price of BTC can be influenced by a few individuals. This in turn means that an ETF backed by Bitcoin would be at the mercy even in the future. What we are suggesting in this case is that the SEC applications for an ETF are reviewed to include other currencies with consent protocols. These coins are pre-mined and will not be affected by hard forks.
What are your opinions on an ETF supported by more than one digital asset? Let us know in the comments section below.
Disclaimer: This article is not intended to give financial advice. Any other opinion here is purely that of the author and does not represent the opinion of Crypto Crimson or his other writers. Perform your research before investing in one of the many cryptocurrencies available. Thank you.
