So the CFTC stated the Bitcoin is a commodity not a security. And Bitcoin and the crypto markets went up. Why?
Let me start with some education as I had to educate myself before starting this post .
First was, what is the CFTC? Commodities Future Trading Commission.
You really need to read CFTC Chair Reiterates: Bitcoin and Ether Are Commodities. I am going to reference and quote it.
"CFTC chairman Rostin Behnam has reiterated that Bitcoin (BTC) and Ethereum (ETH) are commodities, not securities. "
"Although SEC Chair Gary Gensler is willing to call Bitcoin a commodity, he does not have the same sentiment towards other assets such as Ether and XRP."
Okay Gary coming from you this is big news for Bitcoin. You stated publicly you can see Bitcoin as a commodity. Wow.
Back to education. So what the heck is the difference between a commodity and a security?
"Investors purchase stocks, bonds, debt, and other interests in companies, governments, or private businesses. These kinds of investments are securities. At the same time, businesses purchase natural resources like oil, gas, and coal as well as agricultural products like coffee, corn, sugar, and wheat well in advance of delivery. These are examples of commodities."
"The major difference between buying and selling securities and commodities lies in what is being sold. Purchasing stock buys a share in a corporation's ownership and control. Purchasing commodities, on the other hand, is to buy goods themselves before they actually exist. The buyer agrees to purchase so many units of a good at a set price to be delivered much later."
If you read the above paragraph it is easy to see why there is so much debate about what Bitcoin is. In truth it is both. But for us Bitcoin lovers, crypto lovers what ever makes it do better... and if they want to call it a commodity that is fine by me.
You also should read Commodity vs Forex Trading
Commodity vs Forex Trading as Bitcoin could also be called Forex in my mind.
So, as a Hivian first and seeing that we are decentralized true web 3.0 why does all the above matter? Price.
As much as it is hated, and we are building something super fantastic, price does bring people to Hive. FOMO.
And as grandpa Bitcoin goes, other crypto including Hive follows.
There is a ton more information and analysis out there just from today about why Bitcoin is going up, talk a Bull run starting. People are easily excited.
I love reading posts on Hive to get educated so I thought I would try and return the favor this evening.
Hope you enjoyed and got something from this post.
All roads lead to Hive.
Bradley
Posted Using LeoFinance Beta
