Topic: Is institutional capital good or bad for Bitcoin? - page 5. (Read 1318 times)
Bitcoin is for all and not for one, but I believe institutions acquiring large sum of bitcoin has either the good or bad purpose for such investments. The good part is that some of the investments might be for setting up and integrating certain purpose for blockchain while the bad part is likely to be for personal gains and price manipulation regardless of the two reasons bitcoin adoption should be our main focus.
Institutional capital is necessary for a more stable and liquid market of cryptocurrency. More so better laws will be make that will make investing very friendly. I hope all hurdles are overcome and the big banks finally bow out.
Not to break out your positivity towards this possible scenario but I would tell you this that its really hard to believe on where traditional money would purely switch to crypto since we do know that they are more focused or much preferred
to make investment into things like forex,stocks and indices.
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?
well it depends how you look at it. In my opinion institutional investors are the big fish which could drive bitcoin become more popular and that means more investors and also more use cases which could turn out to push bitcoin price. I do also think institutional investors are long term investors that will make bitcoin grow slowly and also reduce the fluctuation. 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?
Institutional capital is necessary for a more stable and liquid market of cryptocurrency. More so better laws will be make that will make investing very friendly. I hope all hurdles are overcome and the big banks finally bow out.
Institutional capital is diffidently good for market because with institutional money we can expect more market capitalization and more new industries and new exposure markets will get
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?
when the price of BTC increases to $ 20k, it is also because these manipulators create it. when the price of BTC drops to $ 3k3, it is also due to these manipulating organizations.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?
But this was natural. Without them, the value of BTC will not increase as high as now. If the SEC joins and dissolves all of these organizations, I guarantee that there will be lots of traders losing money. simply because when these institutions withdraw capital, it will make the whole market go down because the price of the BTC will drop very sharply.
And no one will want to invest in BTC anymore because basically BTC is not the best coin. The transaction is very slow and the fee is very high.
so we should get used to being manipulated.
The SEC is not going to close the doors of services that adhere to KYC/AML regulations. They might close the services that are not regulated or those companies trading without approval.
There are legal and illegal manipulation in all markets and if you have enough goods or fiat to manipulate the price in your favour, then you will do that, I know maze farmers who are working together to manipulate the price of maze on the market and it is perfectly legal in my country.
It will definitely create market manipulation, but at the end (when the market cap becomes high enough) it will bring more stability as more capitalization brings less chances of manipulation. Look at Forex, the most liquid market out there. How much cash do you need to move it in either direction just a few pips?
Depends on how they get into crypto to begin with. For example when they bitcoin in bulk and increase the price it always worries me because they are literally pumping the price but there is no way of knowing if they will dump it or not.
For example, if they could buy bitcoin all together at the same time but sell little by little everyday that could work. However if they invest the money into crypto infastructure that would be awesome, I would love to have couple billion dollars worth exchanges in each country doing hundreds of thousands of dollars worth of profit everyday and dapps and ICO's and many other things basically making crypto space alive and pumping action because that would also result with good prices without any trouble of dumping coming up some day.
For example, if they could buy bitcoin all together at the same time but sell little by little everyday that could work. However if they invest the money into crypto infastructure that would be awesome, I would love to have couple billion dollars worth exchanges in each country doing hundreds of thousands of dollars worth of profit everyday and dapps and ICO's and many other things basically making crypto space alive and pumping action because that would also result with good prices without any trouble of dumping coming up some day.
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?
when the price of BTC increases to $ 20k, it is also because these manipulators create it. when the price of BTC drops to $ 3k3, it is also due to these manipulating organizations.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?
But this was natural. Without them, the value of BTC will not increase as high as now. If the SEC joins and dissolves all of these organizations, I guarantee that there will be lots of traders losing money. simply because when these institutions withdraw capital, it will make the whole market go down because the price of the BTC will drop very sharply.
And no one will want to invest in BTC anymore because basically BTC is not the best coin. The transaction is very slow and the fee is very high.
so we should get used to being manipulated.
It seems to me that the entry of institutional investors into the cryptocurrency market is definitely a positive sign. This will add liquidity to the market and most likely the price of cryptocurrency will go up, because only big money can move the market up. If we act cautiously and intelligently, then I think that any small investor will also be able to capitalize on this growth, but the main thing is to go at the right time and then exit the market.
That is where you are wrong, because institutional capital will in all likelihood gobble up the small investors after the first huge pump. The temptation to sell at a relatively high price will just be too tempting for many small investors. As the price goes higher and higher more long-term hoarders will start dumping some more coins, until most coins shifted to the super rich investors.
We need to see the warning signs when the price suddenly shoot up and people starts to dump the coins and I predict that this might happen after we breached the previous ATH of $18 000+
It seems to me that the entry of institutional investors into the cryptocurrency market is definitely a positive sign. This will add liquidity to the market and most likely the price of cryptocurrency will go up, because only big money can move the market up. If we act cautiously and intelligently, then I think that any small investor will also be able to capitalize on this growth, but the main thing is to go at the right time and then exit the market.
Manipulation organizations are now a lot but sometimes it is also easy to go bankrupt because it has to dispute with other organizations. You know, with a decentralized market, the level of manipulation is always very high and so we should always be careful about investing and trading every day. and always have a stoploss order.
It will be bad if that institutional money will be use to manipulate the market. These investors are also vital to bitcoin's growth because they are also the reason for some big bullruns. Many institutional investors look for in Bitcoin and other cryptocurrencies is its use as a safe haven when the world market is in trouble With global trade wars and some political alignments looming in the horizon, Bitcoin and cryptocurrencies value as an investment is becoming more sought after. So I believe that these type of investors will do more good to the cryptocurrencies rather than bad.
Do you think price manipulation is not happening now ? Everyday we can see some coin being massively pumped/dumped. Even BTC has been facing this since a year now. We may or may not call it price manipulation but certainly the volatility is huge and the price dumps are huge as well. So if at all the institutional capital gives us a risk of price manipulation, let it be, at least there will be chances for every person to make money , albeit it won't happen according to me.
Depends on what you want from bitcoin. If you want bitcoin to be a currency that people try to use something like debit card and use it like a payment and so forth which was the initial reason the bitcoin started and than institutional capital is bad for bitcoin because it is not looking for bitcoin to be a payment but for something like commodity. If you want to see bitcoin as something you can make money from than institutional capital is good for you because they will also try to look for bitcoin to be something to make money like gold or silver and at that they are capable of doing. So it all depends on what you want from bitcoin is it becoming a currency or a commodity.
I think that institutional capital would probably be good for Bitcoin unti the moment in which it would eventually start to be bad. Initially, the prices would soar very much. But on the long term, as the institutions will control more and more bitcoins, the tide may turn.
it's not as simple as that to monopolize bitcoin assets, we can see that the Japanese central bank finally chose to focus more on xrp and cardano, they can't master bitcoin in the majority. In a free market that does not have strong regulations, there will always be stronger funding.
but on the other hand it runs positively because there is a kind of natural competition, as long as it is not destructive, every institution has the right to be actively involved in it.
I would say that it would be good for bitcoin as such investments would be mostly of long term basis which would help bitcoin price to be stable reducing its volatility.On the other hand,newbies would only contribute for increase in bitcoin's price volatility as they would be holding bitcoins only for a short time.
It's going to be a good thing for Bitcoin. Institutions are part of the growth of Bitcoin to become a new class of asset. but, once Bitcoin gets to a certain market cap no institution can manipulate the price anymore. It's just matter of time.
I think if we want to get up in the trillions upon trillion of market cap you will need the bankers and institutions get in. If we want to keep things free and buck off government we cannot be greedy for money. We must be greedy for freedom and keep that money out. I think most want the money though.
Institutional investors, funds, professional traders and investors are a crucial part of every market. I cannot even imagine real market without them because private investors and traders have small capital which is not enough to invest serious projects. Let us have a look at unpopular coins which are not interested to professional traders and what we see. There is no liquidity at all in that coins. Let us have a look at the whole crypto market and as we see it is in the downtrend because professional traders mostly do not buy but private traders are not able to lift the whole crypto market. Professional traders are very important for crypto market and keep in mind thet only they can force crypto market to grow again.
Jump to: