“Badges? We don’t need no stinkin’ badges!”
This line, paraphrased from the 1948 film The Treasure of the Sierra Madre, describes much of the sentiment in the bitcoin crowd this week.
Last week, you probably heard, the SEC decided if the Winklevoss brothers’ bitcoin-tethered ETF could join the Wall Street loudmouths.
The answer? No.
In its official statement, the regulatory agency cited “concerns about the potential for fraudulent or manipulative acts or practices” in bitcoin trading.
Moreover, the SEC went on, bitcoin is “too susceptible to fraud due to its unregulated nature.”
Hmm. Let’s see about that…
1.] Overall, Bitcoin, compared to all fiat flag currencies, is the least susceptible to fraud. It has the most secure network on earth and exists on a database that’s immune to manipulation and monetary inflation. Meaning, it can’t be debased in order to fund wars, oversea regime changes, domestic spying programs and general poli-tickal malfeasance. If the world were to use such a currency (with competing currencies nipping at its tail, of course), governments wouldn’t regulate the money — they would be regulated by it.
2.] Bitcoin is already regulated. But it’s regulated by the bitcoin protocol and the blockchain and not some central regulatory force. It’s done by math — not central planners. There’s no ear to twist. No pocket to fill. No shareholders to cajole, bribe or blackmail.
On the other side of the coin, it means you’re 100% responsible for your own money. With bitcoin, you are your own bank.
All of this, of course, makes the busybodies a bit antsy.