The Wolf Den #962 - The Public’s Perception Of Bitcoin
It’s not that simple
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In This Issue:
The Public’s Perception Of Bitcoin
Gary Gensler Tells All
House Republicans Have Had Enough Of The SEC
This Major Investment Firm Has Almost $2 Billion In BTC ETFs
South Korea’s ETF Is Making Progress
Bitcoin's Wild Ride: Plunge Before the Surge? | Arbitrum's Breakthrough - What Comes Next?
The Public’s Perception Of Bitcoin
In our bubble, Bitcoin is popular, trustworthy, and seen as a game-changer in the world of finance. Beyond our bubble, opinions vary widely, ranging from mild skepticism to outright disdain among investors and observers.
Our crypto reality is constructed and bifurcated this way because humans naturally gravitate towards individuals who reinforce their biases and, at the very least, share their fundamental values and principles.
Crypto natives tend to think they have a good grip on this bubble because we are adept at identifying individuals who work against us, i.e. Gary Gensler, Elizabeth Warren, Warren Buffett, Peter Schiff, Jamie Dimon, etc. but where we fail is overlooking everyday people who also harbor similar sentiments.
This reality is further distorted by our selective exposure to information, as our perception is shaped by individuals we choose to follow on social media, watch on TV, and listen to in government. Our consumption reinforces our beliefs, while what we choose to ignore fails to challenge them.
When we do consider the 'other side,' it's through our preferred media outlet, which sets up an expectation of a slam-dunk rebuttal, aligning with what we were already anticipating. Our beliefs are rarely genuinely challenged, and our perception of reality is seldom fully illuminated.
These factors combined make it challenging for today's crypto investors to gauge the opinions of the masses. Five or ten years ago, it was a given that we were in the minority. However, now there is credibility to the idea that crypto investors and fiat critics are somewhere between the loud minority and silent majority.
This is why I value the rare opportunity to converse with someone completely removed from our bubble, who doesn’t spend their entire working week + weekends obsessing over this market. Recently, I met a blue-collar craftsman to whom I mentioned my involvement in crypto. He responded, "It's all dark money," and added that he has no interest until he can pay his property and business taxes with it.
Fair point.
To some extent, this gentleman makes a valid argument. He runs a frame shop, supports his family through his craft, and pays his dues with the money he earns. What he fails to realize is that the government is gradually stealing from him each day without his awareness or consent. I chose not to delve into that conversation though.
Returning to the bigger picture, I want to highlight two recent examples of Bitcoin and crypto being discussed in public, for better or worse.
The first instance was the recent Roast of Tom Brady on Netflix. During the roast, crypto was brought up twice, and here’s how it went: (profanity warning ahead)
Kevin Hart: “You’re probably asking yourself ‘Guys, why didn’t we go to the Crypto.com Arena downtown?”
“Well, the reason why we didn’t go there is because we didn’t want to remind Tom’s fans of how much money he owes them. He fucked those people. Tom fucked those people. Fucked them good, didn’t he?”
Nikki Glaser: “Tom also lost $30 million in crypto — how did you fall for that?”
“I mean, even Gronk was like ‘me know that’s not real money.’”
The crowd loved it, and I must admit, the jokes were good. However, it's pretty clear the elites haven't forgotten our f**k-ups from a while ago. Investors have short-term memory, except when they are burned. It takes a long time for the bad taste to go away. Can we blame someone for having hatred if they lost money?
Moving on, what about the next generation? How do they feel about Bitcoin?
During the Ohio State University 2024 Spring Commencement ceremony, a student speaker praised Bitcoin and drew attention to it but was met with a chorus of boos from the audience.
“So, I know this might feel polarizing, but I encourage you to keep an open mind right now. I see Bitcoin as a very misunderstood asset class.” The crowd begins to boo.
“It’s decentralized and finite, which means no government can print more at will. In the early days, the exchanges for bitcoin were prone to hacks and frauds, but the issues have been resolved with the recent launch of the Bitcoin ETFs backed by two of the world's largest asset managers, BlackRock and Fidelity.”
The problem isn’t so much the public having a distorted view of Bitcoin; it's that the public is being robbed in broad daylight, completely unaware. When the masses internalize this, Bitcoin's value becomes plainly obvious without any jokes or speeches needed.
I encourage all of you to listen intently to the world around you, wherever you go. Listen before you speak and seek to truly understand. Not only will this approach pay dividends in terms of investing, but it will also help us unravel the lies the masses have fooled themselves into believing.
The public's affection for Bitcoin or crypto is lacking; if they truly cared, we wouldn’t be the ones forcing this into a political issue this election cycle. Bitcoin and crypto is not a left or right issue, it’s an issue of basic human rights. On the bright side, this indicates that we are still early, but it also signifies that there is still a lot of work to be done.
I have hope, and you should too. Don’t wait for the public to have a positive perception; be the change you want to see and guide others towards it. Last point, make sure to vote with your financial freedom in mind this election cycle, we have the power to sway the vote in the direction that is most suitable for us.
Gary Gensler Tells All
Crypto Twitter was blessed with 6 minutes of 1-on-1 time with Gary Gensler, and, of course, nothing helpful came of the conversation aside from question dodging and political maneuvering. I didn't copy the whole interview, but according to Gary Gensler, he believes crypto grabs as much attention as it does because it is “a small piece of overall markets, but it is an outsized piece of the scams, frauds, and problems in the market,” along with “an outsized ratio of journalists and questions to market cap.”
The most striking part of the interview is highlighted below. Gary Gensler suggests that cryptocurrencies should have disclosures akin to companies reporting earnings... what the actual f***, ignores questions about Ethereum, and openly acknowledges his agency's reluctance to offer legal guidance. Regulators and law enforcement are fully empowered to declare whether someone is complying with the law and should do so unequivocally.
Gary Gensler: “The field of crypto assets, without prejudging any one of them, many of those tokens are securities under the law of the land, as interpreted by the Supreme Court. You, the investors, are not getting the required or needed disclosures about those assets. This is earnings season, and everyone is asking about it. Where are the disclosures from these crypto tokens? Similar to the seasoned earnings releases?”
Andrew Sorokin: “Is Ethereum a commodity or a security? And therefore, will there one day be an ETF? This is the fundamental question on the table.”
Gary Gensler: “You are the one asking questions. To me, the fundamental question is how do we ensure the American investor is protected. Right now, they are not getting the required or needed disclosure, and the intermediaries in this centralized market are conflicted and are doing things we would never allow NYSE to do. The NYSE is not allowed to trade against the investors.”
Andrew Sorokin: “Court filings show there was an intentional attempt to mislead the status of Ethereum.”
Gary Gensler: “We don't speak about whether we have an investigation or whether we don't have an investigation. We don't speak about whether or not somebody, in our opinion, is following the law unless we have a case. We stay quiet on many questions you might ask at this live interview and a congressional hearing.”
House Republicans Have Had Enough Of The SEC
The House of Representatives is voting today on Rep. Mike Flood’s (R-Nebraska) joint resolution to express congressional disapproval of Staff Accounting Bulletin (SAB) 121, which represents a harmful change in crypto policy.
SAB 121 outlines unique technological, legal, and regulatory risks associated with crypto custodians, leading to the reluctance of banks and broker-dealers to safeguard crypto assets like other financial assets, despite the SEC's approval of Bitcoin spot ETFs four months ago.
If the resolution passes, it won't be binding but will reflect Congress's collective sentiment and could lead to actual legislation. Tom Emmer argued that “The SAB 121 introduces more unnecessary and avoidable concentration risk into the digital asset ecosystem, making our markets less fair, less orderly, and less efficient.”
As stated above, the law won’t be changed, but a passage will send a strong warning to Gary Gensler and help get everyone onto the same page. Hopefully, Gensler is recognized as a liability to the point that whoever is elected president removes or threatens to remove him to bring him back in line. Distrust towards Gensler has grown significantly over the years, so hopefully, there will be some substantial developments this election cycle.
This Major Investment Firm Has Almost $2 Billion In BTC ETFs
Numerous filings reveal recent purchases of Bitcoin ETFs, with one standout being Susquehanna International Group, LLP (SIG), holding over $1.8 billion in Bitcoin ETFs and Bitcoin and Ether ETFs. Of this amount, over $1 billion is invested in Grayscale's GBTC product, totaling $1,091,029,663. The rest of the funds are spread across various issuers and products, including Bitwise's and Valkyrie's combined Bitcoin and Ether ETFs. This is by far the largest filing I have seen to date.
In other ETF news, Grayscale has withdrawn their 19b-4 filing for an Ethereum futures ETF without providing a reason. It is unknown if this decision followed a private discussion with the SEC or if Grayscale believed approval wasn't forthcoming. However, it is notable that Grayscale did not choose to compel the SEC to comment at the end of the approval period. The withdrawal raises questions about the possibility of a spot ETF following suit. This development is confusing, and it remains to be seen whether more information will be revealed or if this withdrawal is ultimately a positive or negative development.
South Korea’s ETF Is Making Progress
Following the successful election of South Korea’s left-wing Democratic Party, steps are now being taken to ensure regulators move forward in approving a spot Bitcoin ETF, as promised before the election. The country’s regulatory body, equivalent to the SEC, the FSC, currently does not allow the issuance or trade of spot bitcoin ETFs. Meaningful progress is not expected until June, but the party has stated its full intentions to keep its promise regarding the spot Bitcoin ETF. They plan to “request an authoritative interpretation of the Bitcoin spot ETF from the financial authorities again after the 22nd National Assembly opens in June.” So far, only a Bitcoin ETF has been discussed.
Bitcoin's Wild Ride: Plunge Before the Surge? | Arbitrum's Breakthrough - What Comes Next?
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Schiff can attack bitcoin all he wants but just about everything he says weighs in favor of bitcoin until he gets to the Gronk punchline. Gold bugs’ preaching is good for bitcoin whether they like it or not. Otherwise there wouldn’t be so many bitcoiners who were gold bugs pre-bitcoin.