Topic: Is institutional capital good or bad for Bitcoin? - page 7. (Read 1292 times)

It brings volatility and price manipulations only with a low amount of this institutional investors. If we will have more whales then it will be way harder for a single one to influence on the whole price, Bitcoin is still not popular enough for it. Monopolies do not exist on the free market (on the average and long terms), that will be to expensive to buy a huge amount of BTC. Even if someone do it and then dump all BTC the market will  bring the price back and the whale will lose its influence.
P.S. Current market cap of Bank of Aberica is slightly over the current crypto market cap. They gona have to sacrifice themselve to kill crypto.

It's nothing to do with China. China banned bitcoin and closed the exchanges a good six months ago.

What is happening started with profit taking, and then liquidation of stop-losses via bots.

To make Bitcoin more usable as currency there should be a decent solution for scalabity issues. Also, high volatility doesn't help, and as a decentralized currency, volatility is part of its nature, there isn't much to do about it... Bitcoin goes through the store of value path, with some people using it as currency, but not the mass, not the most part of investors and enthusiasts.

I agree with you, the market's movements smell like manipulation, trying to make little fishes drop their coins, so the whales can take all of it and save for themselves, reaching to OP's possibility, to dump large quantities of coins later, a kind of sabotage. So the institutions come with their own Crypto-Currency (centralized one), saying: "Well, as Bitcoin failed, now you can use this one, it's much better, there are a lot of advantages, join us!".

So I don't think institutions investing hard is positive for Crypto world, especially for Bitcoin, but there is nothing we can do about it, it's a free world.

While the current decrease of the price coincides with the future contracts to me the drop in the price seems to be due to factors that can be attributed to bitcoin and nothing more, there is manipulation going on but the drop seems to be related to the fact that china is going to make their controls over cryptocurrencies even tighter which is bad news since we will get less money from Chinese investors.

We were much better without any institution, since the future contracts exist we are only falling!

This is really why we need bitcoin to be more of a usable currency than just a speculative asset as that would give them more chance to take hold of the market strongly and be able to control it however they wish and like. These are guys who have been living their lives manipulating the fiat system, what makes us think the same will not happen in this scenario with bitcoin. I am still sure what we are experiencing right now is institutional played, so the answer to the OP's question is glaring from what we are seeing in the market presently.

I wonder why this was not attended to since December. Even though your's was post busting, it is good this is brought up. I have asked myself this question several times and to me, I just end up seeing room for pretty much manipulation. Unfortunately, a lot of people are panicking and giving them the chance to be able to have more hold in the market, but I am not sure if this would really mean much in the long run on the amount they are going to be sitting on. I am sure they are having this moment already and we can see how that is leading us. At the end, I only see bitcoin ending up as a store of value with the look of things.

Institutional money flows into assets that are expected to have growth in the long term. This growth is dependent on whether the product/ asset has a market or not. The market depends on the people who are using it. It depends on whether big merchants are going to accept it as a way to fund their commerce activities.
The upside for the common people to use it or store is that its non-deflationary, its value will not depend on government intervention, it will be secure and decentralized in the long run.

This current flow of money is probably just the thing that we fear. Big investors trying to make money off of small investors who scare easy by these constant buys and dumps. It may also just be your average big-pocket traders. I don't think we should worry about it too much.

The fundamentals of bitcoin are as strong as ever. With newer innovations picking up, we'll see another extended lull period. The next wave will come as some of the other alternatives come up with working products and use cases. As usage grows, we can be sure that we'll see the marketplaces getting active again and the merchant revival come in in a big way.
Th institutional money will then come in as a supportive investment and not as a speculative one. That is where we have to head.

This present FUD too shall pass.

I believe its has both good and bad effects. Good because such institutions would be putting up their investment in bitcoins which means they also knew that there is a big opportunity to earn from it. While on the other hand it would be risky too because there is a possibility of monopolizing the current market due to its high demand in the market.

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?