French fund manager Melanion Capital to launch new bitcoin-tracker ETF, gets Europe’s gold-standard regulatory approval – August 5, 2021,
An exchange-traded fund (ETF) is like a mutual fund except that ETFs are bought and sold throughout the day on stock exchanges. Typically ETFs are priced in US dollars as most countries or “Unions” are straddled with regressive taxes, which as many people know are deflationary for economies.
Bitcoin, however, has been one of the digital assets, that some claim will rival or dethrone the dollar because if Bitcoin doesn’t threaten U.S dollar supremacy, it really has little to no value as it basically becomes like any other software.
Being that a French fund manager like Melanion Capital is going to create a Bitcoin tracker, one would assume that the expectation is that Bitcoin is going to rise as more mediums are looking for slick ways to take profits, from a decentralized digital cryptocurrency that some believe will be the backing of all global currencies.
Well before Bitcoin takes its place some financial institutions with the APPROVAL of regulators are poised to be the beneficiaries of these potential US dollar-denominated price gains. The Euro-dollar system as many have said, is by design decentralized as this is a means to get fiat while the U.S dollar is debased.
Now, for myself, I’ve been calling for ECONOMIC deflation, because it’s costing more U.S dollars to purchase fewer goods and services. Europe is the home of regressive taxation and the European economy as a whole would collapse if the U.S dollar lost its standing in the world.
Regressive taxation is deflationary to the economy, to give you an example, a few months ago, in Canada, Amazon began charging Canadian sales taxes on its platform. So as an example, a month prior, what would cost $100 on Amazon, now costs $113 for most Canadians. This is DEFLATIONARY for the Canadian economy as the consumer will now lose $0.13 for every dollar spent, and this very same consumer, many of whom already pay an income tax, will not be able to charge their employer an additional $0.13 for every dollar they earn.
Furthermore, it’s not to say that this higher tax will make the Canadian government any more efficient, the Canadian government with its newfound wealth might find a way to hire more Unionized government employees, who will get above market wages, after all the government unlike Amazon or the private sector is not profit-driven(wiling to cut costs to maximize efficiency) it’s ideologically driven.
Now, in Europe, they’re used to these sorts of silly taxes, but this is the main reason why Europe struggles with economic growth and why the U.S dollar is the king of all fiat currency. America is known as the developed nation with the cheapest CONSUMER prices
So for myself, I don’t get why Europe would bet on Bitcoin, which is inherently deflationary. If Bitcoin is normalized in Europe, God help them, because Bitcoin, if its price, continues to rise could be extremely problematic for its hoarders, many of whom may have come to the Bitcoin party late.
At $40K even if Bitcoin reaches $120K USD, that’s not that big of a gain, but it could potentially become a huge tax liability.
Interesting times ahead!