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37 sats \ 4 replies \ @grayruby 4 Dec \ on: How has gold been neutered by ETFs? Has it? econ
The argument is custodians aren't fully reserved. So they can sell the same gold over and over because no one ever takes custody of it.
Personally, I think cash settled futures are more of an issue for gold and Bitcoin., They move the price but neither party ever touches the asset. If they get big enough they can be the main driver of pricing in the asset.
Scammers are gonna scam. I don't consider this neutering gold. Do bitcoiners really think you can't scam on bitcoin? This is what baffles me. To think ETFs are a threat to bitcoin is absurd the more I think about it.
Just sell your bitcoin if you think this. Bitcoin failed before it was ever traded then.
Its all tradeoffs. There are no perfect solutions. ETFs aren't our problem. People are the problem.
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Gold price has done exceptionally well since the launch of the efts. Commodities go through long bear markets sometimes I think gold bugs are just trying to find excuses for why their success in the early 2000s didn't continue into the 2010s and early 2020s.
Many probably bought in at 2k and it did nothing for a decade and then boom it doubled in 6 months. Same as people who buy Bitcoin near the top and then look like fools for 4 years.
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I have a hard time with tradfi is doing x to y. Yeah, they are but if you didn't have a state how would you handle that? We have a democratic state and it has resulted in the what we see.
Scammers gonna scam. Buyer beware. Crypto scams are everywhere. These arguments against ETFs are kinda rich coming from bitcoiners. Bitcoin opened the door for so many scams. We can't then complain about ETFs being scams. Some might be. But I doubt it. It's tradfi doing what it does. It's nothing compared to ETH and the scams it has birthed. ETH would not exist without bitcoin.
What are we gonna do. Take over the state and ban ETFs? Really? If bitcoiners believe it's money then it seems to be it will infect every corner of all financial markets given enough time. It will be used by evil people. It will be a part of scams. People will lose it. They will get tricked. It's a tool. It's amoral.
I can think taxation is theft but if taxes are required in bitcoin this isn't bitcoin failing. It's bitcoin being money. I hope it will minimize the scummy stuff we humans do but it isn't magic. People make choices and choices have consequences.
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Yeah, that makes a lot of sense to me. It is very hard to buy something and at the same time look at it objectively.
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