Why Dogecoin Can Thrive Without an ETF
A crypto expert known as @itsALLrisky recently made a case for Dogecoin’s independence, arguing that the popular meme coin can succeed without the need for a Dogecoin ETF. According to the expert, Dogecoin’s status as a meme-based cryptocurrency would make it less likely to be recognized by established financial institutions, reducing the possibility of an ETF. However, if Dogecoin remains a digital currency instead of becoming an institutional investment, it could flourish through widespread adoption for everyday transactions.
The analyst stated that Dogecoin’s issuance schedule, low transaction fees, and broad appeal make it well-suited to be used as cash. He emphasized that for Dogecoin to rise, it needs to succeed as a grassroots form of money embraced by regular people for their everyday purchases.
The Impact of Spot Bitcoin ETFs on BTC
The crypto expert also discussed how the approval of Spot Bitcoin ETFs could potentially diminish Bitcoin’s value as a transactional currency. He mentioned Arthur Hayes, the founder of BitMex exchange, who warned that if ETFs become too successful, they could destroy Bitcoin’s functionality as a currency. Banks acquiring large amounts of Bitcoin for investment purposes could render them inactive and reduce their use in transactions.
Although the approval of a Spot Bitcoin ETF could trigger a major rally in Bitcoin’s price and provide more liquidity for the cryptocurrency market, there are drawbacks to consider. The launch of a Bitcoin ETF may not improve Bitcoin’s standing as a digital currency used for goods and services; it might even have a negative impact on its role in everyday transactions.
Hot Take: The Future of Crypto ETFs
The denial or approval dates for the Spot Bitcoin ETF are approaching rapidly, scheduled for January 10. The crypto community eagerly awaits the outcome, as it could have significant implications for the future of cryptocurrency and its integration into traditional financial systems. While ETFs offer new investment opportunities and increased institutional acceptance, there are concerns about their potential impact on the functionality and adoption of digital currencies like Dogecoin and Bitcoin. Balancing these considerations will be crucial in determining the long-term success of crypto ETFs and their role in the evolving landscape of cryptocurrencies.
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