The approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has raised concerns about centralization, according to SEC Chair Gary Gensler. In an interview with CNBC, Gensler pointed out the irony of the situation, as bitcoin was originally designed to be a decentralized system.
Spot Bitcoin ETFs and Centralization
Gensler acknowledged that the approval of spot bitcoin ETFs has led to centralization, contrary to the decentralized nature envisioned by bitcoin's creator, Satoshi Nakamoto. He emphasized that the recent approval of these ETFs was about centralization and traditional means of finance, rather than promoting decentralization.
Furthermore, Gensler highlighted that investors were already able to invest in bitcoin through major brokerage houses prior to the approval of spot bitcoin ETFs. The introduction of these ETFs has added another centralized investment option for investors.
SEC Approval and Bitcoin Endorsement
While the SEC approved 11 spot bitcoin ETFs, Gensler clarified that this approval was not an endorsement of bitcoin itself. He explained that the approved ETFs are investment products that allow investors to gain exposure to the underlying non-security commodity, bitcoin.
Gensler also emphasized the speculative and volatile nature of bitcoin as an asset. He cautioned investors about the potential risks associated with bitcoin, including its use for illicit activities such as money laundering, sanctions evasion, and ransomware.
Gensler's Views on Bitcoin's Use Cases
Gensler expressed skepticism about bitcoin's use as a payment mechanism, stating that it is not widely used for everyday transactions like buying cups of coffee. He emphasized that the primary use case for bitcoin, in terms of payments, is illicit activity.
Overall, Gensler's statements highlight the irony of approving centralized investment products for a decentralized asset like bitcoin. He also warns investors about the speculative nature of bitcoin and its association with illicit activities.
What are your thoughts on SEC Chairman Gary Gensler's statements? Share your opinions in the comments section below.
Frequently Asked Questions
What is the cost of gold IRA fees
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes the account maintenance fees and any investment costs associated with your chosen investments.
You may have to pay additional fees if you want to diversify your portfolio. These fees can vary depending on which type of IRA account you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Many providers also charge annual management fees. These fees range from 0% to 1%. The average rate for a year is.25%. These rates can be waived if the broker is TD Ameritrade.
Can I buy or sell gold from my self-directed IRA
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contract are financial instruments that depend on the gold price. You can speculate on future prices, but not own the metal. However, physical bullion is real gold or silver bars you can hold in your hands.
How much should your IRA include precious metals
It's important to understand that precious metals aren't only for wealthy people. You don't have to be rich to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You might think about buying physical coins such a bullion bar or round. Shares in precious metals-producing companies could be an option. You may also be interested in an IRA transfer program offered by your retirement provider.
Regardless of your choice, you'll still benefit from owning precious metals. These metals are not stocks, but they can still provide long-term growth.
They also tend to appreciate over time, unlike traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
Can the government take your gold?
Your gold is yours and the government cannot take it. It's yours, and you earned it by working hard. It belongs to you. There may be exceptions to this rule. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. If you owe taxes, your precious metals could be taken away. You can keep your gold even if your taxes are not paid.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement funds
bbb.org
irs.gov
How To
The best place online to buy silver and gold
To buy gold, you must first understand how it works. Gold is a precious metallic similar to Platinum. It's very rare, and it is often used as money for its durability and resistance. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They cannot be used in currency exchanges. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. Each dollar spent by the buyer is worth 1 gram.
You should also know where to buy your gold. You have a few options to choose from if you are looking to buy gold directly through a dealer. You can start by visiting your local coin shop. You can also try going through a reputable website like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers typically charge 10% to 15% commission on each transaction. That means you would get back less money from a private seller than from a coin shop or eBay. This is a great option for gold investing because you have more control over the item’s price.
The other option is to purchase physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
You can either visit a bank, pawnshop or bank to buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks charge higher interest rates than those offered by pawn shops.
You can also ask for help to purchase gold. Selling gold can also be done easily. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
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By: Kevin Helms
Title: SEC Chair Gary Gensler Discusses Irony of Spot Bitcoin ETF Approval and Centralization
Sourced From: news.bitcoin.com/sec-chair-gary-gensler-sees-irony-in-spot-bitcoin-etf-approval-this-was-about-centralization/
Published Date: Tue, 16 Jan 2024 02:30:19 +0000
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