So, digging a bit deeper into Robinhood, I’m wondering about something that maybe y’all can help with.
Under the hood, Robinhood looks innocuous, but a deeper look we clearly see that you’re NOT ACTUALLY BUYING Bitcoin, rather more like a bank, offering a receipt or IOU for the Bitcoin.
This means that you’re not actually TRANSACTING Bitcoin or alt-coins, meaning one of two ideas:
1 - You’re not using Bitcoin as a transaction, as a currency
2 - You’re only using Bitcoin (the entity) as a base for investment
If we argue that Bitcoin is (supposed) to be used as a currency, a transaction mechanism, then Robinhood could be considered a “bad idea” overall for BTC.
If we argue that Bitcoin is (supposed) to be used as a store of value, then Robinhood “helps” do that in a banking-kind-of-way.
So the question? Do exchanges like Robinhood help adoption and expansion of Bitcoin? Or are they just creating a layer above Bitcoin like GBTC… or ETF’s which… I’ve talked about numerous times (They are coming).
Until Robinhood lets you deposit and withdraw Bitcoin, I don’t see this as an exchange, but rather a controlled apparatus on top of BTC to use as leverage… Good or bad?
Let me have it.