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The etf would be backed by bitcoin 1 to 1 its value would always be that of bitcoin. The 2008 financial crises was because big banks where making loans with on
by dangerface 4y ago
The etf would be backed by bitcoin 1 to 1 its value would always be that of bitcoin.
The 2008 financial crises was because big banks where making loans with only loans as the backing. It was literally a house of cards that the SEC looked at and backed not because of economic reasons but because of the authority of the people behind it.
- pjc50 4y agoSure, but the defi space has now replicated that structure with a collection of shadow banks and "hedge funds", which has a significant impact on the bitcoin price.
- gitfan86 4y agoPart of the reason the 2008 crises happened was because consumers signed up for loans they shouldn't have (Dumb Money). So to avoid another disaster maybe we should also make it more difficult for that same type of Dumb Money to go into crypto. In 2008 the dumb money was told by their Realtor and licensed mortgage broker that they could afford the mortgage. Instead of thinking for themselves these people just assumed that the government wouldn't allow these mortgages to happen if they were a bad idea. Maybe it isn't good to have stock brokers pitching ETFs that appear to be legit investments, to people who don't understand anything about crypto.