Islam and Bitcoin Q and A
Assalaamu Aleikum everyone (may peace be upon all of you)! This time around let's talk about Bitcoin stock. What is it? Does such a thing even exist? We had a sister ask, what is Bitcoin stock and is it like Forex (foreign exchange)? We'll touch upon this and even dip into what is a Bitcoin ETF.
There is no such thing as a Bitcoin stock.
Show length 16 minutes and 29 seconds.
Today's video covers the topic of Bitcoin stock, foreign exchange and Bitcoin ETF. One thing I mentioned in the video was that one "catch" with a Bitcoin ETF is the premium. I mentioned that the premium, or, service fee, may be high. I completely forgot to mention that there are other potential negatives to a Bitcoin ETF.
One negative is that an ETF is not as liquid as holding your Bitcoin in your own wallet. If the time comes and you want to sell your Bitcoin from an ETF or use your Bitcoin, there will be a process that you must go through in order to sell your Bitcoin or to release it from the ETF. There may also be a penalty fee you may have to pay for doing this depending on the rules of the ETF.
Also, you do not hold your private keys. You are completely trusting someone else (the company) to guard and hold your private keys. There is a famous saying by Andreas Antonopoulos, "Your keys, your Bitcoin. Not your keys, not your Bitcoin." This holds true for a Bitcoin ETF.
Serious lack of privacy is another negative aspect of a Bitcoin ETF. If you sign up for a Bitcoin ETF, then banking rules require the ETF company to document information about you; your name, address, bank account information, etc. These companies must follow KYC (Know Your Customer) rules. This means that you many not use an ETF to purchase Bitcoin anonymously.
Here are some websites to check out that can provide a little more information on Bitcoin ETFs