Pages:
Author

Topic: Is institutional capital good or bad for Bitcoin? - page 2. (Read 1292 times)

hero member
Activity: 2464
Merit: 550
Leading Crypto Sports Betting & Casino Platform
the current situation of bitcoin is very good and has a lot of support because you have to know that a lot of investors have prepared their money to buy bitcoin capital and there will be a halving event that I believe can make the price of bitcoin very expensive, so just wait in 2020 for sure the price of bitcoin can make many people surprised.
sr. member
Activity: 2030
Merit: 269
The debate is still on-going if large investments from institutional firms, would be good or bad for Bitcoin in the long run. Some are saying it will bring more volatility and others are just happy that the price will probably go to the Moon.

There are also conspiracy theories doing the rounds that these institutions will use their financial powers to destroy Bitcoin.

Some are even saying that the small fish will be eaten by the big sharks. Let's consider the impact of this and how this will change the Bitcoin scene.

Will Bitcoin go 100% commodity & store of value or will it still be used as a currency?  



All of these are possible, and it could be happening right now, without us knowing it, we know how this corporate and institutions works, they are double face, they want profit and they also want to protect their interest, but Bitcoin is for everyone we cannot stop them from joining the bandwagon, they might also try to create their own coins, while hoarding the top coins in the market, they can do this because they are capable.
sr. member
Activity: 1120
Merit: 255
Definitely it's a good thing. there is no way to solve bitcoin volatility unless somebody wanted to invest a lot of money to stabilize the price, buying bitcoin when the price relative to a particular fiat currency goes below the target, and selling bitcoin when the price goes above the target. Without such a stabilizing force, bitcoin will remain volatile while it is in the early stages of adoption and demand is fluctuating and ultimately unknown. when more institutional investors come to the Bitcoin market, we should see volatility decrease, and this problem will be solved soon. Hence, institutional investors help a greater adoption with their funds.
sr. member
Activity: 1050
Merit: 250
While I'm happy and optimistic that the price will just go to the moon, I don't agree with the statement that institutional money will bring in more volatility. In fact, I believe the opposite will happen and bitcoin and crypto will become more stable the more institutions invest in it. The thing is, institutional money means it's harder for crypto to get manipulated because malicious actors will need more money just to make the price move, it's a safety net of it's own.
institutional didnt bring negative impact only.they just try to add market capitalization although sometime they ofte  use their resources to make market crash and takw their own advantages.but in other sight, when institutional coming to crypto market, its means they judge crypto market was worthed to invest.and hype will coming after their review.
member
Activity: 252
Merit: 13
CryptoTalk.Org - Get Paid for every Post!
While I'm happy and optimistic that the price will just go to the moon, I don't agree with the statement that institutional money will bring in more volatility. In fact, I believe the opposite will happen and bitcoin and crypto will become more stable the more institutions invest in it. The thing is, institutional money means it's harder for crypto to get manipulated because malicious actors will need more money just to make the price move, it's a safety net of it's own.
legendary
Activity: 1652
Merit: 1088
CryptoTalk.Org - Get Paid for every Post!
Institutions are unsentimental. Yes they have a lot of money and can move the price upwards. But they are unlikely to be hodlers. If they need to liquidate and bitcoin is the easiest thing to sell, they'll sell. They also won't be shy about taking profits if bitcoin makes a big move upwards.

So it's a double-edged sword.

IMO bitcoin would be safer if loads of little people bought into it.
hero member
Activity: 2856
Merit: 667
We can't stop institutional money from flowing their money in crypto, if they see some potential, they would surely invest in.
Will it be good or bad? I can't tell right now but I believe its' good because institutional money helps to bring adoption in the market and that is all we need in order for bitcoin to be a mainstream currency and we will see some great development from confident capitalist in the crypto space.

Bitcoin and altcoins will live together, of course those altcoins who are legit will survive despite the fact that they are struggling now and I also think that in time, people will not only focus investing their money in bitcoin but altcoins as well.
sr. member
Activity: 1582
Merit: 253
Although it has its own consequence,  i still believe that institutional investors investment will have a great effect on the adoption of cryptocurrency and Blockchain technology. This will cause other individual investors to see how reliable crypto is
yes all return to the confidence of each investor in investing and needed if indeed with the capital that will be issued for the crypto currency it can bring benefits to investors and in my opinion the development depends on the investor itself investment with capital will certainly benefit
full member
Activity: 868
Merit: 185
Roobet supporter and player!
I think that at this moment the institutional money, its inclusion will be totally good for the market, because it is most likely that they enter in favor of the price so that it rises, that is, the big investors will raise the bitcoin price accordingly so that the majority of people enter LONG and so they can start taking profits as they are selling bitcoins, is a very good tactic, especially because what is generated is a total bullish trend, which is what is in the current phase .
Since bitcoin has a scarce supply. Institutional money helps a lot in price of bitcoin. Actually, every investment in regards with bitcoin helps it to grow. Bitcoin is a volatile coin and it raise if there are many whales entering the market. That is why we need a support of the people and treat bitcoin as a new means of payment and currency.
jr. member
Activity: 392
Merit: 7
OTC works like this.
Step one...
You sell your Cryptocurrency as retail investor or Cryptocurrency holder with cheap price.

Step two.
OTC sellers will transfer Cryptocurrency out of exchangers to private wallets.

Step 3

Private wallet holder will sell it to the large OTC customers.


Step 4
Bankers will make even bigger rate cuts,  cheap money is now for Everybody.


Governments will ban OTC  and offshore crypto Trading...

Only allowed to buy and trade crypto in your own country exchangers like coinbase.


Last Step.


Then the party will Begin  investors have cheap money Everybody will start investing into Bitcoin again.


This will make crypto to the Moon.
The OTC big investors will sell their Cryptocurrency to the retail average joe!! 


jr. member
Activity: 392
Merit: 7
The instutional money is cheap money wich is produced by rate cuts.

The money is never been so cheap then now.
But even If the money is cheap... The bitcoin price Can move Only When Capital is invested into bitcoin through exchangers.



What we see right now that  the money is cheap and big Institutions investing big billions of dollars
Euros and other Fiat currencies!


Offcourse many of you think that If so much Capital is invested into Cryptocurrency market Why the Price of btc is Still Low???

The Reason, is the OTC.
RICH People who Got access to cheap money created from thin air are buying Up whole Cryptocurrency secretly without moving market prices!! 

To make retail investors to sell their Cryptocurrency their have placed laws and regulations to make You sell your Cryptocurrency to them with cheap price.

Once the instutions have accumulated all Cryptocurrency  the bull run will start.
And regulations will be soft again
newbie
Activity: 7
Merit: 0
Institutional capital is very good for Bitcoin, because it improves its credibility.

Many wealthy people are also more likely to invest if institutional capital is involved.
legendary
Activity: 3276
Merit: 1128
Depends on which institution it comes from. I mean we have seen some crypto companies get funding from angel investors so they can get bigger and better, that is a good institutional money for example, I would love to see huge companies invest or directly buy out these crypto companies to make them bigger and better.

However, if we are talking about huge corporations getting bitcoin and manipulating it however they want then unfortunately that is not really good for us since they can shape it the way they want. That is why you have to pick each individual investment and look if it is helping the crypto economy get bigger or smaller, if it helps it get bigger like angel investments than it is good but if its corporations manipulating the price then it is really bad.
legendary
Activity: 2898
Merit: 1253
So anyway, I applied as a merit source :)
I agree, legalization is an obstacle for investors to invest their capital in crypto. actually this can support the rapid growth of bitcoin, but there are still many governments that consider it, but it is natural that if you will invest large amounts, we demand the security of funds
Legalization is the wall street markets led to them being more stable and less pump and dump from happening. Unfortunately this good thing cannot happen to crypto and people should be more careful about what they are investing in. Whether it is some new coin or an old project.

Again the project owners never differentiate investors on the basis of volume of investment. All they do is run a telegram channel where they come once a month to blabber about "developments" going on for more than two years and no progress, waiting for more funds and so on. Basically all these ICOs and then STO and now the IEOs are covered up scams. But you cannot complain because there is no grievance forum. Just your money gone with the wind. Who is institutional there is least bothering them.
legendary
Activity: 2422
Merit: 1102
Institutional money is great if it's going long. If this institutional money decides to short bitcoin we're gonna have a problem Cheesy

Usually it's good because if a company invests it also makes a lot of noise in the media. They want others to hear about it and treat it like a bullish sign. There's at least 90% probability that when institutions enter they will pump prices.
I'd expect that bitcoin will become just a means of payment rather than investment. None of the institutional money will be invested considering the volatility by logic but if it's only uses bitcoin as a means of payment or transferring that'd be good instead of just price pump and dump.
The issue with bitcoin adoption is that many people have just been announcing it based on investment tool but not as a payment tool. When people hear investment, they either interpret it as a ponzi scheme that would scam them, or see it as a short term investment they need to quickly make, and this is one of the reasons why money easily leave the market because people are not there to just save their money in and stay or just put money there to use it for utility purpose.

Utility tool is the actually the major reason why cryptocurrency was even made to manifest in the first place,which on no account should we ever forget this, what can give us adoption is payment feature of it, and how secured transactions through it are secured.
full member
Activity: 1344
Merit: 110
SOL.BIOKRIPT.COM
Institutional investors wants interests on their said investments, they want assurance that their money they invested would give them profit at a specified time, Bitcoin was not designed for this, it is volatile and no specific price, it is unpredictable and no one knows whats gonna happen if you invest on it. Institutional capital is big, they got money and power, it is a big help for Bitcoin in order to push it to another level. Currently some big names in institutional investments are researching crypto currencies, on how they could manage to extend their businesses along side crypto trading and the likes. If more and more money gets in the it could give motivation and the whales would play even harder,leaving Bitcoin to be in a bull state again.
member
Activity: 893
Merit: 43
Random coins :)
I think this is a double sided sword simply because institutional investors will first be more interested in protecting their money which means introduction of a centralized ecosystem despite bitcoin operating in a decentralized manner.

But overall the benefits could be more than we could lose out from their presence, I guess we need these guys.

hero member
Activity: 2170
Merit: 528
Institutional money is great if it's going long. If this institutional money decides to short bitcoin we're gonna have a problem Cheesy

Usually it's good because if a company invests it also makes a lot of noise in the media. They want others to hear about it and treat it like a bullish sign. There's at least 90% probability that when institutions enter they will pump prices.
I'd expect that bitcoin will become just a means of payment rather than investment. None of the institutional money will be invested considering the volatility by logic but if it's only uses bitcoin as a means of payment or transferring that'd be good instead of just price pump and dump.

It's not the volatility that scares them away but lack of regulation and a lot of hacks and disappearances. They need a backed and regulated exchange to invest. Maybe when something like BAKKT finally launches they will feel safe enough to enter with their money.

People from bakkt knew what was needed in the field: an exchange that has all the paperwork in order and a good cold storage.
legendary
Activity: 2898
Merit: 1253
So anyway, I applied as a merit source :)
Institutional money is great if it's going long. If this institutional money decides to short bitcoin we're gonna have a problem Cheesy
Its both a boon and a bane. You cannot decide on one side of the deal only, but look out for the other side as well. Its like a double edged sword.

Quote
Usually it's good because if a company invests it also makes a lot of noise in the media. They want others to hear about it and treat it like a bullish sign. There's at least 90% probability that when institutions enter they will pump prices.
These institutions are more of a predator group who look out for whale signals and create their own whale signals. They want people to be influenced about a movement and they would go against that movement to grab the cash from them. Its not something that is good for bitcoin in the long term but for the traders, yes they help pumping and dumping the prices and thus allow people to make a lot of profit.
legendary
Activity: 2338
Merit: 1124
It they will pump it - good, else - bad. thats simple
Well, They play both roles, institutional capital has a very great advantage, and they also have a very great disadvantage. When they pump money into the market, it will surely increase the marketcapital of the market that they pump it to, and we know what happens to the value of such coins, those who had invested before they pump the money would have the chance to have some profit based on their own increase while those institutions makes money off those that would out of fomo start investing when they see such increase, which usually come with a very high dump, and this is where it has its own disadvantage, so it depend on which part we fall into, either to benefit from their own pump or suffer losses when they dump the coin into the market.
Pages:
Jump to: