Topic: Institutional money into Crypto? - page 5. (Read 6006 times)

Yup, if there is a potential for gain, greedy Wall Street is never too far.
In fact I think the 2017 roller coaster ride of Bitcoin was engineered. And likely some Wall Street players reaped in large sums through pump and dump schemes.

I do worry a little about scalability and privacy. But mostly, I worry more about Wall Street and banksters getting involved.

Through Over The Counter trades, it is very possible that institutional money is already circulating around the Bitcoin community. And I do not think it's a positive prospect for regular investors. It would not increase circulation or the regular usage of bitcoin as a currency.

Nope. That's not what it means. Wall Street has no desire to recognize Bitcoin as a currency or as a ham sandwich.  All that Wall Street cares about is to make money. If they figure out a way to make money from paper bitcoin, rehypotecation, fractional reserve banking, and futures market, that's exactly what they will do.
And there is only one result to such a scenario: price control. Just like they do with oil, gold, silver, and fiat.

To be honest, investment money from Wall Street will have a significant impact especially on the fluctuations in crypto prices in the market and may tend to pump up crypto prices. But, it won't last long. I do not mind the investment made by Wall Street towards bitcoin because it means that the technology that exists in bitcoin has been recognized by many parties and is feasible to be used and formalized as an asset or currency.

Yes, we should/could/would do just that.
But Wall Street is not likely to do that. They are likely to sell you something like a mutual fund. And they will claim for example that x% of it is in Bitcoin, and an other x% of it is in Litecoin, and so on....
Your mutual fund investor is not going to tell you to go buy coin to keep in your wallet because that would directly remove him as the middle man.

When others rejoice in Wall Street getting into cryptos, I don't rejoice, I cringe.

I think you fail to understand how much money is being made from rehypotecation and fractional reserve banking. Bankers are not going to give up that cash cow any time soon.

So we should use blockchain to control gold and silver market maybe not whole market but certificate part.
Using the blockchain will allow to control individual bars deposited in any treasury and prevent you from "selling" the certificates of the same bars to several people at the same time...

Here is what concerns me. I am a gold and silver bug. So I buy and keep as much gold and silver as I can afford (yeah Bitcoin too).
But I fully understand that the price of silver and gold is heavily controlled and kept down. While I only invest in physical bullion, most people don't bother to buy physical billions.  They just buy gold and silver certificates which their bank tells them represents an actual gold bar they will kindly store for you.

So you can actually go to your bank or broker and buy a gold certificate. It will have a serial number which they tell you is matching an actual gold bar somewhere in their vault.

What they are not telling you is that this same certificate can be issued to several other customers. So they effectively sell the same bar to many people. This scam can only work so long as not everyone decides to cash in their certificate and demand their physical gold. And in fact the vast majority of paper gold investors never bother to cash trade in their certificates for actual gold or silver.

The problem with this is that gold and silver are valuable because they are scarce. But when they issue several 'certificates' for the same bar, they are effectively creating the illusion that there are more bars in circulation than there actually is. And the more paper gold they issue, the more they create the illusion that there are more gold in circulation. And this has for effect to keep the price of gold down.

My fear is that if Wall Street actually gets around to invest in Bitcoin, they will not issue any actual Bitcoin to their customers anymore than they are issuing actual gold bars to their customers. They will just sell 'paper Bitcoin' or bitcoin certificates to their customers. 

Some people call this rehypotecation, some others call it fractional reserve banking. But I call it what it actually is - fraud and price control.

What are your fears that they might actually implement these things if Wall Street decides to sink their teeth into Bitcoin?

Hey guys. I'm very active on Quora. There a great many people are predicting tgat cryptos will get bigger soon as Wall Street is working to get invested in cryptos. They all think that once banks bring their massive funds into crypto, that the price will go sky high.

I'm not so optimist. I think Wall Street getting into Bitcoin can only mean bad things. Mainly rehypotecation and paper bitcoin allowing countless people to invest in Bitcoin 'certificates' rather than owning actual Bitcoin.

How do you guys feel about that?
You think Wall Street money getting pumped into Bitcoin can be a good thing?

I for one only see bad stuff down that road. Bitcoin  is supposed to be the death of Wall Street, not it's instrument.

Your thoughts?