How will institutional investors impact Bitcoin? - page 2.

hyudien

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Quote from: Isuru_ on October 07, 2023, 01:51:59 AM

Institutional investors can bring stability and liquidity to the Bitcoin ecosystem. They can also help to legitimize Bitcoin and make it more mainstream.what you think about this as a crypto guy ? Wink

Bitcoin is not crypto.

When large and small institutions are interested in investing in Bitcoin, the impact can be significant. Because the level of institutional trust means that the money they put in has agreed on the future of Bitcoin and is confident that it will provide profits in the future. A class of companies will not be careless in investing their money, so when they choose Bitcoin it means they have done a fairly in-depth review.

Try to set aside the volatility. Regardless of the level of volatility, I think large investors already know the risks of playing or investing in assets with high volatility. So I think the institutional view of Bitcoin as an asset with a limited supply will decrease in value and the level of scarcity will drive the price higher. Gold can be added and never ends, Fiat can be printed but Bitcoin cannot be duplicated in any way. That is the strong reason why institutions are now starting to pay attention to Bitcoin as a viable hedge asset.

Plaguedeath

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Stability and liquidity? we don't need that, the volatility in Bitcoin price is the reason why most people interested to invest in Bitcoin. As for liquidity, those institutional investors only trade in centralized exchanges, the liquidity in CEX is already very high and you don't need to wait the buyer or sell.

We need a liquidity in decentralized exchange or no KYC P2P, but I already know they will not trade here due to so called fighting against anti money laundering.

bitmover

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Quote from: Isuru_ on October 07, 2023, 01:51:59 AM

Institutional investors can bring stability and liquidity to the Bitcoin ecosystem. They can also help to legitimize Bitcoin and make it more mainstream.what you think about this as a crypto guy ? Wink

Institutional investors are already here, you may like it or not.

They are basically looking for long term investments and thinking in bitcoin like a digital gold, a commodity.

I don't think that is bad, neither that it wasn't predicted long ago

Hal Finney mentioned banks coming to bitcoin long ago, acting as a second layer

Quote from: Hal on December 29, 2010, 08:38:40 PM

Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain. There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.

Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.

George Selgin has worked out the theory of competitive free banking in detail, and he argues that such a system would be stable, inflation resistant and self-regulating.

I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today.

https://bitcointalksearch.org/topic/m.34211

Odohu

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Quote from: Isuru_ on October 07, 2023, 01:51:59 AM

Institutional investors can bring stability and liquidity to the Bitcoin ecosystem. They can also help to legitimize Bitcoin and make it more mainstream.what you think about this as a crypto guy ? Wink

This is very correct. Many people are scared of Bitcoin because of volatility... their fears is justified. By the time we have institutional investors getting heavily invested in Bitcoin, the liquidity will be huge such that it becomes difficult for few buys or dumps to drastically cause price fluctuations. For a coin with low liquidity, a single buy or sell of less than $1000 can alter the price significantly and this is not healthy.

So, just like you have already stated, institutional investors is good for Bitcoin and until we have more of it, mainstream adoption of Bitcoin and Bitcoin becoming a legal tender in many jurisdictions, will continue to linger.

Dunamisx

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Since bitcoin is a decentralized digital currency, you can make every effort to have this done from your side if possible, but be rest assured that bitcoin is an independent digital currency and the system it work with is the blockchain technology and everything about bitcoin is in it diverse ability and potentials to always have a market value which is the driving force for it demands, there are opportunities that come with bitcoin adoption which fiat cannot give, this will also be an additional means why bitcoin is the mainstream of digital currency in cryptocurrency and how the whole of it operate with the use of blockchain, as for the the institutional investors, they can help with nothing than themselves in this.

Isuru_

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Institutional investors can bring stability and liquidity to the Bitcoin ecosystem. They can also help to legitimize Bitcoin and make it more mainstream.what you think about this as a crypto guy ? Wink

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