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Can Bitcoin go legit?
Something interesting is happening with Bitcoin right now.
Something else on their minds, the major coins, getting slammed heading into the holiday weekend and give it a little bit of insight into what you make of these Wild Wings. Like today with a 9% drop talking about the Wild and weird and volatile changes in the cryptocurrencies value. I'm talking about the very core of what Bitcoin is about to move Beyond just being something that you use to pay for a thing or someone, she loves talking about cryptocurrency. I don't hate crypto. I don't love it. It's something that exists and it's fascinating to watch and it's fascinating to write about. So I will continue to do that. Sir Kelly's been looking into how Bitcoin which is supposed to be this digital alternative to currency of that kind of operates in the shadows doesn't have things, but has computers and is controlled.
By the people is catching the eye of Wall Street, and that's catching the eye of government Regulators access digital currencies. Because they understand that there's demand there for the average investor unregulated exchange, and having a Bitcoin wallet, who even knows what that is. Bitcoin is cool but confusing. So Wall Street Traders, should be able to invest in it for you. So give the sophisticated investors the Bitcoin wallets and let them sell Securities to the public that will then. Track the price of Bitcoin thing is something like that needs to be approved by regulators and Regulators. They're not sure what they're going to do yet. I got a lot of hate for this article.
This morning, I woke up to some some really really vile things said about me, just for just for raising the possibility that policymakers are hesitant about Bitcoin. I'm Jeremy Siegel this is Politico, dispatch and today, people trying to institutionalize this supposedly revolutionary asset Kelly matric on wall, Street's big push to make Bitcoin legit.
Hey Kelly, before we get into what's going on with Wall Street. And with Regulators, give me a super quick explain her on what Bitcoin is send in what it's about, what you need to understand is that it was basically a theory that turned into a currency that was based on the idea that may exist. But recent bugs around the digital currency Bitcoin. We've learned that there is now being accepted at casinos and it's for cars even for rent. How many people know exactly what it is or how it can be used. Instead of a bank you had what was called the distributed Ledger, which is
In a really rudimentary sense of balance sheet that you share from one computer to another. What'd promulgated was this entire view of decentralized finance that you now see policymakers and Regulators kind of jostling against and also trying to get their hands around your ribs and computer hackers. And what we've seen is that has morphed into this vibrant ecosystem, where institution started coming in more and more, when it comes to regulating how and where people use different types of stores of value, whether that's a dollar or a Chinese yen, the bureau. All of those things have a really important political value and that is that everyone agrees that a certain amount of money is worth something. And so for something that's entirely based on,
Computers to compete with that. It's created something of a financial Revolution.
So this revolutionary new form of currency has kind of grown and grown over the years and not just be going there, all sorts of other cryptocurrencies Bitcoins. Just the biggest as it's grown and people have heard more about in probably heard about some of the big spikes and how much it's worth which have also come along with big dips at times more. People have wanted to get involved in cryptocurrency in some way and now you're reporting that Wall Street is making a big push to launch something called exchange-traded funds that are linked to cryptocurrency like Bitcoin.
I feel like I just said a bunch of words together that kind of make no sense, what exactly is an exchange-traded fund and why is Wall Street pushing for them here ETFs, it's such a complicated convoluted mouthful of words but what you need to understand is it would basically give people inability to buy Securities in a font. So they're not actually buying Bitcoin, they're buying a Bitcoin flavored fund. And so, the reason that this even has demand in the first place is because people think they coins hot. So people on Wall Street, want to give investors easier access to digital currencies because they understand that there's demands there before the average mom-and-pop investors going on an unregulated exchange and having a Bitcoin wallet.
So give the sophisticated investors, the Bitcoin wallets, give the sophisticated investors, the choices of the exchanges that they go on and the currents and let them sell Securities to the public that will then track the price of Bitcoin and takes away a whole lot of the risk for every day. Investors exchange traded fund exchange traded products, you know, all of this Blingo and this jargon really boils down to the fact that sophisticated investors want to have a funds that invest in these currencies, and they can then sell Securities, which or not Bitcoin.
The tell people, hey, you can gain exposure to what happens in the market with Bitcoin, but you don't need all the risk. That makes sense to me. The reading, your story Wall Street, lobbyists are facing an uphill battle on getting this approved. Lawmakers like Senator Elizabeth Warren who you interviewed said, quote our country needs to take a deeper dive on how to deal with purple currency before any regulations are put in the SEC, which regulates the stock market. You say is also skeptical on this. What is behind that? Exactly what's the argument against legitimizing Bitcoin on Wall Street? The huge declines in Bitcoin and other crypto currency values. Volatility and then even the ransomware stuff. We see, we see people, you know, demanding payment,
Servers. And the Federal Trade Commission, just came out with the report that last year, people lost almost 80 million dollars in investment firm for people under Thirty, half of that was in cryptocurrency when the concerns are so Rod right now, in terms of how safe this ass at really is, and whether it's the kind of pet agree that it would have, if it was a funds that could trade on the National Stock Exchange and the Republicans who are the champions of decentralizing financing and in deregulating finance, even they need a little more time right now. Before they're willing to endorse this and I think that's very telling, some regulars are upset. They say, you know, there's enough proof of work. Now that we don't have to worry about that. But other Regulators say, no.
This thing has been allowed to grow outside. The auspices of regulators, we've told them what they're doing is potentially illegal. They've not listen to us. The market has continued to expand and now we're not going to bless them with a special route to stock markets just because they've gotten really big. And so that's the real decision point that we're all waiting to see what comes out of it and it's still really not clear. The SEC could decide this summer on whether applications for some of these ETFs, these funds are proved, but I'm curious like, with the whole idea of Bitcoin cryptocurrency that you talked about earlier being decentralized, being unlike these government-regulated currency is a bit, you know, going under the radar, not being controlled, by any government entities, all that stuff. Like if you have a situation where the SEC is allow,
Wing and regulating Wall Street cryptocurrency trading in a way, just sort of go against the core of what it's about. I think that's a really smart question. I think that kind of speaks to the fact that you can't just make a currency in a vacuum on, as much as do you. Like intellectual purity of Satoshi Nakamoto who is the creator of Bitcoin whitepaper seem to offer two people? It's obviously become a creature of Wall Street in a way that nobody can control. And, you know, I'm sure a lot of people would hate to hear me say that, but when you see people who are trying to create funds, when you see the former chairman of the FCC jclayton advising for a financial hedge fund company, that is currently trying to lie.
A cryptocurrency exchange traded fund. I mean, it's obvious that in no way. Is this some kind of anti financed financed vehicle? And so I think that, you know, trying to provide investors exposure to a more Wall Street, friendly product that has the flavor of their ass is just a natural outgrowth of what Wall Street likes to do, which is take something that's popular and find new and different and creative ways to make money off of it.
Kelly magic. Thanks so much for talking with me. Of course I'm happy to always talk about all things Finance.
Also today the TSA is reporting the highest number of passengers screened during the coronavirus pandemic on Friday that you can see you saw more than 1.95 million air Travelers the most since March of 2020. When the pandemic began to take hold in the US Air Travel has slowly climbed in recent months with more than 62% of American adults. Haven't gotten at least one vaccine dose more than half of adults, fully vaccinated Memorial Day. Weekend has been widely expected to Mark a return to something more closely. Resembling normal, T4, many with covid cases falling significantly across the country. And President Biden is set to visit Oklahoma today. To Mark the 100th anniversary of the Tulsa Race Massacre. The trip comes after on Monday, Biden issued a proclamation. Remembering the massacre, calling for Americans to eradicate systemic racism in pledging to further.
Racial Justice, the massacre happened between May 31st and June 1st of 1921 when white rioters destroyed the black neighborhood of Greenwood and killed hundreds and his Proclamation Biden called on the federal government to quote reckoned with and acknowledge how to restrict wealth and opportunity from black communities. During the federal policy made recuperating from the massacre quote nearly impossible.
Today's episode included music, composed by brake master cylinder. Be sure to subscribe to Politico dispatch if you haven't yet and also tell a friend to check out the show. I'm Jeremy. Thanks for listening.
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