Cryptocurrency has undergone major changes this week, with the introduction of spot Bitcoin ETFs on Wall Street in January. The industry looks vastly different than it did just a few years ago, raising the question: is Bitcoin still considered a cryptocurrency?
The concept of decentralization in cryptocurrency is now open to interpretation. The recent approval of spot Bitcoin ETFs by the Security and Exchange Commission has brought a level of professionalism and regulation to the industry. Cryptocurrency, once associated with crime and small players, now has major financial institutions like BlackRock and Fidelity involved in the buying and selling of Bitcoin. While this may be seen as a positive development by some, it also takes away from the core value of cryptocurrency.
The shift from cons to bankers in the crypto world is evident, as seen in the closure of FTX and the seizure of over $2.1 billion worth of Bitcoin by German authorities from a piracy website. The US government also holds a significant amount of Bitcoin, with plans to sell a portion of it seized from Silk Road. Even a $1.7 billion Ponzi scheme involving cryptocurrency has been exposed and brought to justice.
The question is, does anyone really care about the changes happening in the world of cryptocurrency? The original idea of a decentralized and unregulated form of currency seems to have been overshadowed by the involvement of governments, regulators, and banks. It’s a bit unsettling to see Bitcoin, once a symbol of rebellion against traditional currencies, now becoming a part of the very system it was meant to disrupt. While regulation may help prevent fraud, it also raises the question of whether Bitcoin is any different from trading stocks.
