If you can't beat em, join em!
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:
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:
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
I do not believe the US Government has really and truly turned it's attention toward Bitcoin and Cryptos in general. When it does, run for the exit!
Sure the FBI had confiscated batches of coins here an there and the IRS has come sniffing around Coinbase, but that's nothing compared to what's coming down the road.
Unlike most people, I do not believe that the driving force behind the Govt's eventual intrusion into the Crypto community will be about CONTROL, but rather TAXATION.
Government, at every level, is starving for new ways to generate tax "revenues". Just look at what's happening to Illinois and Connecticut. These two states are facing impending bankruptcy due to pension obligations. Now, over here, you have a bunch of Crypto-Nerds seemingly making money hand over fist daily. The Govt will be salivating like Pavlov's Dog.
The states went after Amazon because they were not collecting and remitting state taxes. All online retailers followed suit soon after.
In the end, it's always about taxes.
Agreed, 100%.
Governments can't even get the computers on their desks to work right, so there's no way they're capable enough to develop their own digital currency equivalent to crypto any time before we colonise another planet.
And not Mars either, I mean one of the more suburban planets that will colonise even later than the first.
So gov't will be limited to just developing new ways to find whatever assets they can, in order to tax the hell out of them.
Very Interesting analysis you got there. Makes alot of sense to me.
For tax honesty, check out http://losthorizons.com. Note: honesty doesn't mean you won't die rotting in jail, like Irwin Schiff.
I agree with your reasoning, but taxing will eventually be moved onto the blockchain, which will in turn increase the prices of cryptos. It's a self-reinforcing force that the governments need to utilize, than fight!
Eitherway; we can't run away from taxes.
I'm not running away. I'm using the law as it was written. The Constitution prevents a direct tax; it must be apportioned. Taking money before your employer gives it to you is a direct tax, not apportioned. Thus it's unconstitutional.
But there's more to it than that. Government employees are the only people, in the law, who are required to pay taxes. For the rest, it's "voluntary" which most people just go ahead and file.
I encourage you to look into that web site, and the book "Cracking the Code" by Pete Hendrickson, which he sells on his website. It's only $25 and will save me thousands.
Ok , I will when I get the chance.
We're safe as long as Trump is President. He's an entrepreneur who doesn't think like the deep state crime family. As for Van Eck - 70 hedge funds are being formed to invest in cryptos. Many of those will be offshore and will not care what the U.S. government wants. Money flow into the space should increase. Vehicles like UCITs alresdy exist to do an end run around taxing entities.
I'm late to the party here on this post, however I just wanted to reach out and let you know, I will be writing a series of posts addressing how the IRS has already implemented taxation on cryptocurrency, how in the U.S. to prepare for it and account for it properly; so we do not end up being blindsided years down the road, if crypto really keeps taking off and we all make some decent money (if not already). Please feel free to follow me as I would love to have your insight on the discussions to come. If you know anyone that would be interested please feel free to pass along @cryptotax Look forward to chatting!
Nobody knows what's really going on
One thing is sure is a monetary revolution, a new era of monetary creation based on blockchain technology and governments must adapt
Yes, agreed. The question then becomes will they use what already exists or go about creating their own?
Governments know what is happening in the cryptomy market, they are monitoring the situation without acting for the moment, the crypto market even if it is important but it does not even represent 10% of the forex market
To answer your question, they have both create their own money and use the elders who have a real "technology"
Agree with you, eventually governmental transactions will all be adopted to the blockchain. It's a financial revolution unfoulding before blinded eyes. It's beautiful!
join at this http://coin.mg/lg95Xh7YC
I walked into a realtor's office yesterday, and saw the the company owner had an article about silver and gold open on his browser. 70 year old business man. I made a random comment that cryptocurrency is also on the rise and was surprised to hear; "Oh! Like Bitcoin and Etherium?"
Mass adoption is definitely on the rise with the fears surrounding the fininacial security of the dollar. As I live in Honolulu, there is what I feel to be more panic here regarding a possible Neuclear fallout coming up.
My prediction is that what we are seeing may not be a correction, but the begining of mass adoption. Less than two weeks ago, I had $45 of BTC in my wallet. Untouched, its sitting at $62 now.
Hodl, but don't put in more than what you can afford to lose. Don't want to panic buy or sell when the timing isn't there
No way! I am actually opening my own business consulting would-be investors on basics to advanced. It's amazing the diversity of people getting their feet wet in crypto!
Typical Wall Street. Their tune changes when they see massive profits that could have been made, had they only bought in a week ago. So, to please their customers and stay relevant, they take a bold step.
Governments are powerful. It's true that they could ultimately crush Bitcoin if they really wanted to. And maybe some of the smaller countries will do just that in order to tighten the grip on their people. But there's too much money in Bitcoin now, that most government (like Wall Street) would rather partake in the buzz and try to capitalize on the profits, rather than dissolve the mighty Bitcoin.
I completely agree in how they see profits and want in. That said though, more interest in the platform only increases it's legitimacy. This could be especially good for public figures whose interest in Bitcoin causes their followers to also develop an interest as well. I am concerned with regulation as interest increases though, so hopefully, more mainstream investors does not mean more mainstream rules.
Government has zero power, people always have more power then them.
For example, I recently heard a BItcoin conspiracy theory that stated they are going to destroy Bitcoin from the inside out. Not going to happen, if anything they (for example: Chinese Mining Corporations) will try to take Bitcoin over for themselves. This will inevitably increase the value of Bitcoin so you should buy it anyway before government starts moving in the money and control. If Bitcoin power centralizes government is going to have easier excess to those who control Bitcoin. Though, Bitcoin could potentially lose some freedom because of potential future government involvement and following regulations, it does matter.
Changes in regulation of bitcoin will only lead to mainstream acceptance of the Bitcoin and these changes will come and bring a new and stellar rise to epic value for Bitcoin. Even if you had to pay taxes on Bitcoin in the future, its value would still increase a thousandfold so that it is a net gain regardless.
TLDR; Do not give in to the FUD!
That is my hope as well. Their failure to act soon enough may eliminate their ability to act at all, at least that is what I would like to believe. :)
Wall st. At its finest. In reality, if they crush one, another will pop up. There is no stopping decentralization. People will always remain triumphant in the face of greedy governments. It's history!
You are right to ask, with all the rhetoric, why are they jumping in? I consider it a defensive move. They are scared and at the same time want to have some control over the situation. I think the powers that be are looking for a kill shot for crypto. If BTC has universal adoption worldwide it will be hard to launch their own federalized crypto to compete. Crypto controlled by the fed would be a dream come true for the government no cash transactions and everything on a ledger attached to social security numbers.
Money is money. Especially to the government and corporations.
Think about the new US law in Congress that want's travelers to declare their digital cash as they pass through the border. They do this because unlike when we withdraw from banks while traveling, withdrawing money through Cryptocurrency is done without reporting it to them, making it so they can't follow our money movements and also cannot freeze our bitcoin like they can with our assets. This creates a form of money that operates without their control and without their oversight, allowing users to move their money without needing permission.
I understand the issue they may have with that allowing users of Cryptocurrencies to not be able to be audited for underpaying their taxes, but that is a byproduct of not having the government observing your money flow.
Any opinions on this?
Outlaw enough of the productivity, and you're asking to stop breathing. Not at my hands, but, it'll happen.
US.gov has already taken down http://BTC-e.com and is looking for more targets. When is a predator too much?
The US govt. having not paying attention to cryptocurrencies unlike Russian. Infact Russia has its own crypto back coin the putin coin and now their brewing something big about them becoming a mining central for crypto. While the US only concern put concern on oil and war.
The more that get involved the better for Cryptos overall. Why would anyone TRUST Banks anymore ???