Bitcoin Value Drops 15% After Stock Exchange Proposal Declined

[Steven Bogos]

Bitcoin Value Drops 15% After Stock Exchange Proposal Declined

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If the proposal had been approved, the public would have been able to invest in bitcoin simply by purchasing shares in the ETF.

Bitcoin has taken a very dramatic hit today, dropping as much as 22% in value. The reason behind this sudden drop was regulators for the SEC rejecting what was known as the Winkelevoss ETF proposal, which would have allowed bitcoin investments to be traded on the stock exchange.

Essentially, wthe public would have been able to invest in bitcoin simply by purchasing shares in the ETF, which would trade on a U.S-based stock exchange.

The assumption was that an approved ETF would open the floodgates to both Wall Street and regular investors who want a stake in the digital currency but didn't feel comfortable purchasing it on their own. This influx of new investors would then drive up the price of bitcoin.

Instead the rejection of the proposal had a devastating opposite effect. The value of the digital currency dropped from $1,295.00 to as low as $1,000, and stabilized at $1,120.00 - an overall 15% drop.

The reason SEC gave for the rejection of bitcoin is the very reason it has become so popular: it is an extremely unregulated currency, and doesn't comply with SEC standards.

Tyler Winklevoss, who authored the proposal, says that he hasn't given up hope yet. "We remain optimistic and committed to bringing COIN [the ETF's proposed ticker] to market, and look forward to continuing to work with the SEC staff," he said of the ruling.

Source: Tech Crunch [https://techcrunch.com/2017/03/10/bitcoin-drops-15-after-the-sec-rejects-the-winklevoss-etf/]

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[Avnger]

I thought we'd finally moved on from the bitcoin as currency nonsense. It's become nothing more than a high-risk commodity investment at this point.

 

[Worgen]

I thought we'd finally moved on from the bitcoin as currency nonsense. It's become nothing more than a high-risk commodity investment at this point.

Yeah, but it keeps going up in value so some people will want it. Plus it's hard to track which isn't really a bad thing, except for something like investment and such since there are rules that being anonymous lets you kinda avoid.

 

[Fijiman]

And most of the world went on not giving a shit about pretend money that somehow is worth something.

 

[FalloutJack]

So, it went from worthless to worse-than-useless, then. Right, I see. Okay then, carry one.

 

[OldNewNewOld]

And most of the world went on not giving a shit about pretend money that somehow is worth something.

To be fair, pretty much all of your money that isn't precious metals is just pretend money. We are willing to give the paper or plastic value therefore it has value. Same goes for Bitcoins. As long as people give it value, it will have value.

 

[Fijiman]

And most of the world went on not giving a shit about pretend money that somehow is worth something.

To be fair, pretty much all of your money that isn't precious metals is just pretend money. We are willing to give the paper or plastic value therefore it has value. Same goes for Bitcoins. As long as people give it value, it will have value.

While that is true, most other forms of money have an agreed upon value that is constantly being affected by what's going on in the world. Bitcoins have always seemed like its value was based more on "LOL! It should be worth this much because reasons!" every time I hear about it.

 

[RaikuFA]

Damn, that's almost as bad as when I sneezed and it went down by 37%.

You talking about bitcoins or dow jones?

 

[FalloutJack]

And most of the world went on not giving a shit about pretend money that somehow is worth something.

To be fair, pretty much all of your money that isn't precious metals is just pretend money. We are willing to give the paper or plastic value therefore it has value. Same goes for Bitcoins. As long as people give it value, it will have value.

This one's been debated, and it boils down to not being proper legal tender on the basis of not having a stable system or not conforming to standards which a currency must adhere to. Long story short, it's snake oil. Don't buy it.