The ongoing chaos across all asset classes, politely called uncertainty or technically volatility, shows itself in the crypto market, of course. Recently there was the Ethereum update, which took take place on April 12. Simply put, this update will allow Ethereums that are “stacked/connected” to the system to move freely in order for the network to work. Those who followed the crypto market closely were already able to indirectly buy and sell their Ethereum, which they connected through applications such as Lido. With this update, anyone and everyone will be able to disconnect their Ethereum at any time. However, this development may also mean proof that Ethereum is a security for the SEC (American CMB).
At this point, the most important development will be the Ripple case. In 2020, the SEC sued the company and its officials for allegedly selling Ripple coins on the market without registering them as securities. The majority of those who argue that the judiciary will make its decision in line with the views of the SEC due to the negative atmosphere and extreme caution against cryptocurrencies, along with the scandals at the end of 2022. On the other hand, many coins, including the CFTC Ethereum, which is also a public authority, are not securities and are commodities argues that it is within its jurisdiction. In other words, the 2 institutions that dominate the legislation, even the legislation itself, cannot agree on the definition of crypto assets, despite hundreds of lawyers and market-dominated staff. In this case, I think it is difficult for the judiciary to make a clear decision in favor of the SEC.
However, of course, I do not have the competence to say this on the basis of any law. The outcome of the Ripple case will be very critical in terms of both cryptos and other country regulations. Therefore, a decision in favor of Ripple can trigger a very sharp rise. Especially considering that Ripple hasn’t been able to participate in a rally for years.
While all this is happening on the technical side, Bitoin is trying to position itself during the banking crisis. Wrestlers, who can’t get enough of being defeated, once again consider the liquidity that the Fed provides to the system as “printing money”, while ignoring the fact that Bitcoin’s main strength is that it does not carry counterparty risk.
Comparing bitcoin or gold to a banking request or deposit product would be like comparing apples to pears or even pumpkins. But when the counterparty risk arises, the Gold that God has given us and Bitcoin created by humans stand out as products that do not carry this risk.
I don’t think Americans with deposits have switched to Bitcoin. In terms of volatility and returns, these two do not appeal to the same investor audience. However, it is not surprising that Bitcoin stands out for those who want a protection mechanism against the system. More importantly, I attach importance to this performance of Bitcoin, which has not successfully passed the inflation test, because of its potential to put an end to the debate about what feature it can position itself in the financial system. Of course, cryptos cannot be expected to navigate in calm waters before the regulations are clarified. However, 2023 seems to be a productive year in this regard.
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