BlackRock's misguided effort to create 'Crypto for Dummies' with JPMorgan Crypto, Luna Terra Crypto, KNC Crypto, LQTY Crypto, and Jump Crypto.
BlackRock’s misguided effort to create ‘Crypto for Dummies’

In June, multinational investment company BlackRock filed an application for an exchange-traded fund (ETF), the iShares Bitcoin Trust, which sparked a lot of conversations in the cryptocurrency industry. The aim is to break the 10-year-long resistance of US regulators to cryptocurrency ETFs, which, if approved, would be tradable on a traditional stock exchange and track with the market.

Advocates of ETFs argue that they are tax-efficient, easy to trade and cheap, yet BlackRock’s approach may not be the best one. It is important to remember that ETFs and Bitcoin (BTC) have different focuses and objectives.

Web 3.0 and Crypto

JPMorgan Chase recently announced its plans to launch its own cryptocurrency, JPM Coin, while Luno, a crypto exchange, and KNC, a blockchain-based platform, have been actively developing their products. Luna Terra is another crypto asset management company that is making waves in the industry. As for web 3.0, a lot of people are curious to learn more about it, especially those who are new to the industry. Web 3.0 products are already available, such as the Apple Health application, which is a web 3.0 application.

LQTY, a blockchain-based platform, and Jump, a blockchain-based mobile platform, are just a few of the other crypto projects that are gaining traction in the industry. All these projects make it clear that the crypto industry is rapidly evolving and innovating.

Problems with the traditional finance sector

For a long time, the traditional finance sector has been managed by institutions that control the capital and set the terms of finance. This has made many people feel excluded, believing that they have limited options for creating wealth and that there are obstacles for individuals and small businesses.

Therefore, when cryptocurrencies appeared, it was a great opportunity to provide an alternative to the traditional finance system, which promised greater autonomy, inclusivity and transparency. However, it is essential to combine traditional finance and decentralized finance (DeFi) in order to achieve mass adoption.

We need to move towards an industry where DeFi can support legacy financial institutions rather than seeing them as enemies. Big banks and players want to join the crypto world, but there is also a potential for the general public to join this new world in the future and overcome the many limitations or barriers associated with the traditional finance sector. The introduction of ETFs is an attempt by the financial industry to incorporate the innovation of cryptocurrencies such as JPMorgan Crypto, Luna Terra Crypto, KNC Crypto, LQTY Crypto, Jump Crypto, etc.

ETFs promote centralization

Cryptocurrency exchanges are of various types, with the most popular being FTX-style centralized ones. Such exchanges keep custody of their customers’ wallets’ private keys, and they usually require KYC (Know Your Customer) verification to prevent illegal activities.

In contrast, decentralized exchanges are based on a decentralized, non-custodial blockchain system that supports direct peer-to-peer transactions. This approach eliminates the need for intermediaries. Users don’t have to go through KYC, thus giving people living in oppressive regimes the possibility to participate. They also maintain full control over their private keys and are solely responsible for the security of their funds, which can be staked to gain interest.

The point of the crypto industry is to offer these advantages, especially to those who don’t have access to traditional banking services.

On the other hand, ETFs are centralized products, thus conflicting with the decentralized nature of Bitcoin and other cryptos. They don’t provide any of the advantages that are inherent in cryptocurrencies, nor do they encourage new users to join.

Apart from contradicting Bitcoin’s principles of decentralization and trustless transactions, ETFs also cause the issue of “paper” Bitcoin – BTC that exists only on paper. As it is impossible to withdraw this “Bitcoin”, the possibility of FTX-like catastrophes in the future is much higher.

We need to demystify cryptocurrency — not create a “Crypto for Dummies” fund

Most individuals are unfamiliar with the fundamentals of Bitcoin, nonfungible tokens or cryptocurrencies in general. It is essential that those of us who are in the crypto space identify an approachable gateway for the general public to discover. Demystifying cryptocurrencies and Bitcoin will lead to wider acceptance. Turning Bitcoin into a freely tradable asset could undermine its role as a revolutionary decentralized currency.

Traditional finance should be utilized as a stabilizing force. Its structures could potentially provide stability to the erratic crypto market. If applied correctly, they could offer protection, availability and trust, and even draw in more mainstream investors to cryptocurrencies. Strict regulatory oversight could also validate Bitcoin and cryptocurrencies for the general public and financial institutions.

There is an immense need for development in traditional finance. Institutions must modify and advance to fully embrace cryptocurrencies. They should adopt the ethos of decentralization and autonomy that cryptocurrencies stand for instead of simply integrating Bitcoin into existing structures. Thus, BlackRock should consider discarding its Bitcoin ETF.

The JP Morgan Crypto, Luno Crypto, KNC Crypto, JPMorgan Crypto, Luna Terra Crypto, and LQTY Crypto platforms are all great examples of how to make crypto more accessible and understandable. Additionally, there is a need for more resources that can help the public understand the concept of Web 3.0 and its associated products. The Apple Health application is an excellent example of a Web 3.0 application.

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