Topic: Risks of instituations holding bitcoin (Read 713 times)

Quote from: abel1337 on April 07, 2021, 03:41:20 PM

Perhaps these institutions with strong financial power are sharks in the crypto market and they are manipulating part of the market.
I think these institutions will not hold BTC for long, as long as they are profitable they will leave, perhaps then there will be a sharp decline.

You may be right or may be wrong but we can't do anything about it if they suddenly plan to sell their Bitcoin since it's their money in the first place. But, you don't need to worry because I don't think they have to easily throw their investment just because they saw a slight profit in this market.

But think about it, why Elon Musk and others large institutional investors are starting to invest in Bitcoin today instead of doing it last 2017 bull market? There could be some reason about it but why should I care when I am just a small fish in the sea compared to these sharks. Cheesy

Of course they won't leave easily if they haven't made a big enough profit. However I am still here no matter if the big fish are leaving the crypto market, I love BTC and this market so I want to stick with it.

For those solid supporters for sure to stay and those people will even eventually be buying into those times since coins would really be cheap which is understandable.

If they do leave out the market then let them be because it will just eventually recover no matter what.This is one of the cons when there are people/instutions/companies

who do baghold much number of coins because of their financial capacity which is really normal or anticipated.

arwin100

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Quote from: jonval21 on April 07, 2021, 03:11:15 PM

Quote from: jonval21 on April 07, 2021, 03:11:15 PM

Perhaps these institutions with strong financial power are sharks in the crypto market and they are manipulating part of the market.
I think these institutions will not hold BTC for long, as long as they are profitable they will leave, perhaps then there will be a sharp decline.

You may be right or may be wrong but we can't do anything about it if they suddenly plan to sell their Bitcoin since it's their money in the first place. But, you don't need to worry because I don't think they have to easily throw their investment just because they saw a slight profit in this market.

But think about it, why Elon Musk and others large institutional investors are starting to invest in Bitcoin today instead of doing it last 2017 bull market? There could be some reason about it but why should I care when I am just a small fish in the sea compared to these sharks. Cheesy

Of course they won't leave easily if they haven't made a big enough profit. However I am still here no matter if the big fish are leaving the crypto market, I love BTC and this market so I want to stick with it.

Having institutional investment is because they are expecting very large profits, Elon Musk, Paypal and many more that are entering did not do it to earn pennies, I am sure they did their analysis and they know that the benefit will be in large proportions, I do not think they will go to exit the market when it hits $100,000, they can take profit of $200,000.

Well we don't know. It is safe to say that they will just hodl their BTC for greater profit but I think that companies and big institutions can't risk a big solid portion of their company and just entered into crypto because of the profit they can get during the bull market. These companies know that they can get a good amount of profit in the market so they entered. Imagine if these institutes bailed out one by one and bitcoin will crash, I don't know if you would say that you love the market.

Hodling is not in their nerves businessman know when to take profit and stop their loses, since we are in bearish trend for sure they will take long to maximize their profit and they will just add an hype on it so that they can possibly gain much attentions. But believe me when bear market hits they will secure their capital and profit then they only leave a small portion of profit for hodling they will just put a volume to make them relevant im the game.

pixie85

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Quote

US Securities and Exchange Commission revealed that retail’s share of bitcoin purchases has fallen steadily over time, from 80% in Q1 2018 to 36% in Q4 2020. This indicates that institutions are buying up a bigger share of the bitcoin pie, a trend which may only continue and perhaps even accelerate in the future.

Nothing new. As price goes up less private investors will be ready to buy a big share. Private investors who bought cheap will be selling and big companies who have money and are prepared to invest a lot more and be satisfied with smaller margin of profit are going to keep buying.

I don't call it a risk. It's what every mature asset evolves into. Gold is also owned by big players like central banks. Retail in mature assets is always falling behind institutions.

imstillthebest

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its risky for them because they are investing huge chunks of btc but investing in btc will now be safer for us retail investors .
it can only become a risk after some time or when institutional investors decided to sell thier huge btc's
.
the only way to prevent it from happening is when we get out early before the sell out happen and then re enter once btc gets dumped

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Perhaps these institutions with strong financial power are sharks in the crypto market and they are manipulating part of the market.
I think these institutions will not hold BTC for long, as long as they are profitable they will leave, perhaps then there will be a sharp decline.

You may be right or may be wrong but we can't do anything about it if they suddenly plan to sell their Bitcoin since it's their money in the first place. But, you don't need to worry because I don't think they have to easily throw their investment just because they saw a slight profit in this market.

But think about it, why Elon Musk and others large institutional investors are starting to invest in Bitcoin today instead of doing it last 2017 bull market? There could be some reason about it but why should I care when I am just a small fish in the sea compared to these sharks. Cheesy

Of course they won't leave easily if they haven't made a big enough profit. However I am still here no matter if the big fish are leaving the crypto market, I love BTC and this market so I want to stick with it.

Having institutional investment is because they are expecting very large profits, Elon Musk, Paypal and many more that are entering did not do it to earn pennies, I am sure they did their analysis and they know that the benefit will be in large proportions, I do not think they will go to exit the market when it hits $100,000, they can take profit of $200,000.

Well we don't know. It is safe to say that they will just hodl their BTC for greater profit but I think that companies and big institutions can't risk a big solid portion of their company and just entered into crypto because of the profit they can get during the bull market. These companies know that they can get a good amount of profit in the market so they entered. Imagine if these institutes bailed out one by one and bitcoin will crash, I don't know if you would say that you love the market.

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Perhaps these institutions with strong financial power are sharks in the crypto market and they are manipulating part of the market.
I think these institutions will not hold BTC for long, as long as they are profitable they will leave, perhaps then there will be a sharp decline.

You may be right or may be wrong but we can't do anything about it if they suddenly plan to sell their Bitcoin since it's their money in the first place. But, you don't need to worry because I don't think they have to easily throw their investment just because they saw a slight profit in this market.

But think about it, why Elon Musk and others large institutional investors are starting to invest in Bitcoin today instead of doing it last 2017 bull market? There could be some reason about it but why should I care when I am just a small fish in the sea compared to these sharks. Cheesy

Of course they won't leave easily if they haven't made a big enough profit. However I am still here no matter if the big fish are leaving the crypto market, I love BTC and this market so I want to stick with it.

Having institutional investment is because they are expecting very large profits, Elon Musk, Paypal and many more that are entering did not do it to earn pennies, I am sure they did their analysis and they know that the benefit will be in large proportions, I do not think they will go to exit the market when it hits $100,000, they can take profit of $200,000.

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Quote from: fauzan123 on April 06, 2021, 12:39:09 AM

Perhaps these institutions with strong financial power are sharks in the crypto market and they are manipulating part of the market.
I think these institutions will not hold BTC for long, as long as they are profitable they will leave, perhaps then there will be a sharp decline.

You may be right or may be wrong but we can't do anything about it if they suddenly plan to sell their Bitcoin since it's their money in the first place. But, you don't need to worry because I don't think they have to easily throw their investment just because they saw a slight profit in this market.

But think about it, why Elon Musk and others large institutional investors are starting to invest in Bitcoin today instead of doing it last 2017 bull market? There could be some reason about it but why should I care when I am just a small fish in the sea compared to these sharks. Cheesy

Of course they won't leave easily if they haven't made a big enough profit. However I am still here no matter if the big fish are leaving the crypto market, I love BTC and this market so I want to stick with it.

arwin100

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Quote from: iTradeChips on April 05, 2021, 07:24:58 PM

In my opinion, these institutions are basically large money making endeavors and is not really about supporting Bitcoin or Cryptocurrencies in general. I mean they do not even care about the Blockchain technology. I do not expect them to hold their bitcoins for a long time and will eventually sell them once opportunity comes. Manipulations are also likely to happen now, now that big finance is also getting its share of the Bitcoin pie. So let's all be very careful when dealing with these institutions.

As long as banking and investment institutions treat cryptocurrency like high risk/high reward investments. Challenges can occur when financial institutions become greedy, speculating or overweighting investment portfolios too heavily in cryptocurrency.

They know on what they are doing since those guys are experts interms of investments. Im sure they do a nassive studies before they invest on bitcoins and maybe they are joining creating a fud or hyping up just to earn with their investment.

And they will not became greedy since they are not newbies, they have plans on what to do and they are willing to catch fire and get a benefits.

Karartma1

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Quote from: iv4n on April 06, 2021, 01:25:57 AM

Quote

In fact, institutions are likely to be more of a stabilizing influence on the bitcoin market than retail traders

Quote from the article!

The headline of this topic is not appropriate here, there isn't anything risky for Bitcoin here! And it's a nice article, it's talking about the money that gets into crypto, new investors, and about some long-term price analysis... which can be accurate, or not... time will tell!

In the end, it's the freedom and free market! Each of us can do whatever we want with our coins, so can big institutions! I will go with the article here and say that "Institutions are in BTC for the long haul"... and maybe the price will be a lot stable one day because it will be hard to push the price down while institutions with their capital can maintain their buying level!

Being honest there are risks related to the fact that, let's put it this way, if GBTC or TSLA or MSTR and the likes lose access to their bitcoin funds, this would reflect on the price short-term (by plummeting) but on the long term not having these coins on the market it could make BTC more valuable.

iv4n

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Quote

In fact, institutions are likely to be more of a stabilizing influence on the bitcoin market than retail traders

Quote from the article!

The headline of this topic is not appropriate here, there isn't anything risky for Bitcoin here! And it's a nice article, it's talking about the money that gets into crypto, new investors, and about some long-term price analysis... which can be accurate, or not... time will tell!

In the end, it's the freedom and free market! Each of us can do whatever we want with our coins, so can big institutions! I will go with the article here and say that "Institutions are in BTC for the long haul"... and maybe the price will be a lot stable one day because it will be hard to push the price down while institutions with their capital can maintain their buying level!

fauzan123

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Quote from: iTradeChips on April 05, 2021, 07:24:58 PM

In my opinion, these institutions are basically large money making endeavors and is not really about supporting Bitcoin or Cryptocurrencies in general. I mean they do not even care about the Blockchain technology. I do not expect them to hold their bitcoins for a long time and will eventually sell them once opportunity comes. Manipulations are also likely to happen now, now that big finance is also getting its share of the Bitcoin pie. So let's all be very careful when dealing with these institutions.

As long as banking and investment institutions treat cryptocurrency like high risk/high reward investments. Challenges can occur when financial institutions become greedy, speculating or overweighting investment portfolios too heavily in cryptocurrency.

It is important to keep in mind that this is a new world, and cryptocurrency is here to stay. As we’ve learned with any new technology, the challenge is not “if” but “how” to best integrate it into existing systems.

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Risks? Well maybe one is the fact that they are kinda like hoarding Bitcoin on a daily basis and the total circulating supply right now is decreasing. There might be a time that they will sell their Bitcoins just to take profit. Well that is normal already for them since we can consider them also as an investor like us. Them dumping "all" of their Bitcoin will create a massive dump and a big decrease in price.

On the other hand, there might be a chance that some institutions will do the opposite. They might not sell all of their Bitcoin although they will sell some for profit that is for sure. Right now, there is no risk on it TBH but when the time comes and they will sell it then just be ready. I believe that institutions are here to support Bitcoin and some of the large companies are already integrating cryptocurrency in their system like Paypal, Visa etc. More institutions will come and adopt Bitcoin and crypto

.

iTradeChips

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In my opinion, these institutions are basically large money making endeavors and is not really about supporting Bitcoin or Cryptocurrencies in general. I mean they do not even care about the Blockchain technology. I do not expect them to hold their bitcoins for a long time and will eventually sell them once opportunity comes. Manipulations are also likely to happen now, now that big finance is also getting its share of the Bitcoin pie. So let's all be very careful when dealing with these institutions.

just_Alice

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Institutions buying Bitcoin won't pose a risk as long as people use their common sense. Naturally, they're buying off a bigger share of BTC than retailers and the trend will probably go in that direction, which gives them the opportunity to manipulate the price. But that's pretty much it. In fact, this can work to the benefit. If institutions buy and hodl Bitcoin and then, eventually, they'd try to use it to manipulate the market - all one has to do is stay tuned and use these price runups for trading purposes, very convenient.

concept2

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Investing involves risks. Our bitcoin has drawn more attention from institutions and now, those guys invest a lot of money, resource and capital to take over as many bitcoin as they can. This can be both risks and opportunities at the same time. The resources they provide will stop a sudden big sell-off but on the other hand, they can start their own sell-off which can make the whole market turn into a big red pumpkin. To me, I only see the opportunity. As long as we follow the big fish, we will never get hungry.

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I came across this article about instituations holding bitcoin what do you think, is it a risk what is your opinion ?
https://cryptonews.com/exclusives/institutions-retail-compete-for-bitcoin-which-is-the-biggest-9695.htm

Institutions might be a potential threat to bitcoin's "price" and not bitcoin itself.

The price of bitcoin is a speculative part and institutions trading it will only affect the price of bitcoin and not it's usage.
Bitcoin will still be usable as a currency. Also, even if bitcoin's price is dumped due to huge sell of from institutions it will still be able to recover the price as they start buying bitcoin again.

bitzizzix

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We must remember that freedom to use bitcoin and no one controls it, so institutions are free to own and use bitcoin in their own way, and if they want to sell it in the short term, that is their right and must accept whatever happens.
and they are the owners of a large number of bitcoins influencing the market movement and they are great and smart people, and nobody knows what they have planned for the future.
and I personally can only take advantage of the best opportunities and moments to get big profits and re-plan according to what they plan and the good news about bitcoin adoption in the future and don't want to be left behind to make a profit.

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Quote from: jonval21 on April 04, 2021, 06:35:45 PM

I came across this article about instituations holding bitcoin what do you think, is it a risk what is your opinion ?

Definitely a risk. Institutions hold a big amount of Bitcoin and yes that is a good factor for the increase of Bitcoin price, however, with a huge amount holding it can be a huge impact on the market as well if they decided to sell off or to take profit. They are not gonna let their holding sit in their wallet for it a long time that is why it would be a big impact once they sell. To put it simply institutional investors are a double-edged sword, it can be beneficial and harmful at the same time.

Karartma1

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I came across this article about instituations holding bitcoin what do you think, is it a risk what is your opinion ?
https://cryptonews.com/exclusives/institutions-retail-compete-for-bitcoin-which-is-the-biggest-9695.htm

One of the biggest risks that I see for institutions is that they may suffer a Ransonware attack, if this happens it would cause an unreal massive dump, it could radically lower the price, most companies do not take computer security into account, if they use a Ledger is likely to have some security but there are many vulnerabilities, perhaps it is a minimal possibility that happens but you have to consider it, don't you think?

This made me laugh as you obviously have no idea of how custody in the institutional world works. Do you really think they have online exposure of wallets that makes them a potential ransomware aim? Ledger? Only one?
Jeez, man. You have no idea what these guys have put in place.

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