WHY BITCOIN IS BETTER THAN btcETF
Friends hallo every one. Let us get it clear.
There are notable and worthy benefits to using Bitcoin directly rather than through an ETF:
1. Potential for Higher Returns:
- By holding Bitcoin directly, investors can potentially capture the full upside of the cryptocurrency's price movements, without the drag of ETF fees.
- This always leads to higher returns for holders who are taking their freedom back of direct Bitcoin ownership.
2. Self-Custody and Control:
- Holding Bitcoin directly gives investors full control and self-custody of their digital assets.
- This allows investors to manage their Bitcoin holdings according to their own security practices and investment strategies.
- With an ETF, the fund manager maintains custody of the underlying Bitcoin, which is really viewed as a drawback.
3. Potential for Yield Generation:
- Bitcoin held directly can be used for activities like lending, staking, or participating in decentralized finance (DeFi) protocols to generate yield.
- ETF holders do not have these opportunities to earn additional returns on their Bitcoin holdings.
4. Tax Benefits:
- Depending on local tax laws, directly holding and trading Bitcoin may allow for more favorable tax treatment compared to investing in a Bitcoin ETF.
- This can include the ability to claim capital gains/losses on Bitcoin transactions.
5. Early Adoption Advantages:
- Direct Bitcoin usage allows investors to be early adopters and participants in the evolving cryptocurrency ecosystem.
- This can provide a sense of empowerment and engagement with the technology that may be less accessible through a regulated ETF.
Of course, these benefits of direct Bitcoin use come with added self discipline, such as the need for technical know-how,
The optimal choice between a Bitcoin ETF and direct Bitcoin usage does not really depends on the investor's goals, risk tolerance, and technical expertise but rather I think our Big brother wants a piece of the pie and control of the pie.
What do you think?
