Risks of instituations holding bitcoin - page 2.

jonval21

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Quote from: Ratash on March 30, 2021, 05:13:11 PM

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?

AmoreJaz

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Quote from: CarnagexD on April 04, 2021, 06:57:22 PM

These private entities and institutions buying and holding huge amounts of bitcoins are a double-edged sword. For one, they can and they will pump the price up by buying significant amounts of the cryptocurrencies and then holding it, more people will follow them and this will induce price increase. However, the same could also happen when these institutions dump their savings, which could mean imminent death for bitcoin and starvation for us.

if in case they will dump, they should have good reasons why they will do so. because dumping means, they dont believe anymore in this market. or in other scenario, they are manipulating the market just to get as much profit as they can. however, to do that, all these institutions should unite with their movement to make an impact in the market. and that i believe, is hard to achieve. each institution has their own goals why they are investing in crypto, and more then likely, they have their own 'secret' plans how to manage their crypto assets.
definitely, there are risks involved if in the future most bitcoins will be on the hands of these big companies. however, thinking about that, you will just wear yourself for nothing. right now, just take care of your own business and go from there...

CarnagexD

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These private entities and institutions buying and holding huge amounts of bitcoins are a double-edged sword. For one, they can and they will pump the price up by buying significant amounts of the cryptocurrencies and then holding it, more people will follow them and this will induce price increase. However, the same could also happen when these institutions dump their savings, which could mean imminent death for bitcoin and starvation for us.

Asuspawer09

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That just means that as they accumulate a lot more bitcoin they will be able or there will be a lot more manipulation in the market which is a bad thing for the bitcoin community.

It's an easy profit if we hold our bitcoin with a strong hand because bitcoin for sure will be overpriced in the future, we just need to be the one who selling our bitcoin when the time comes.

If they sell a huge volume of bitcoin it could easily dump the market and then just buyback, potentially could be a pump and dump thing or scheme by this institution and companies.

ReiMomo

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It's possible that holding bitcoin is at risk because there are too many big institutional investors that will I guess will dump soon their assets and cut their gains while we are suffering from the recent drop. I guess that will not give a big impact on the market even there are 3-5 institutional investors selling their assets at a time. If there is a seller, there would be also a buyer, and that is a new investor.

I guess there's nothing to worry on this situation because as I can see, there are too many believers of bitcoin that now holding bitcoin and they hold it for a long time.

Oceat

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Quote from: xZork on April 04, 2021, 12:04:51 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

Hamphser

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Quote from: DarkDays on April 04, 2021, 02:56:41 PM

Quote from: Ratash on March 30, 2021, 05:13:11 PM

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

This is the fine line between institutions holding large amounts and also temporarily helping the market price when buying. The latter could also translate into more of a domino effect whereby other institutions would follow suit. This would be good for the crypto but only if the amounts bought up don't influence the market. Often, arguments against crypto come in the form that large companies would have control over the market. This could easily happen and we need to come up with something to prevent that from happening, we need more decentralisation...

This is a free market which means it cant really be avoided if these big institutions or company would really tend to baghold lots of bitcoin into their stashes.

Yes, it would really be a double edge sword where it can really affect the market positively but at the same time when it comes to monopoly aspect then we would really be heading there
if these will continue.

Those holders in bigger portions would really have the control when it comes to price movement but i doubt that it wont really be that much of an issue.
This isnt something that we can see on centralized markets.

pankowri

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The market is highly volatile and risk feasts here instantly. Institutions are the big clients of bitcoin, they hold a big percentage of BTC and their holding time is much towering. When they trade in the market then there come a lot of changes in pricing.

DarkDays

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Quote from: Ratash on March 30, 2021, 05:13:11 PM

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

This is the fine line between institutions holding large amounts and also temporarily helping the market price when buying. The latter could also translate into more of a domino effect whereby other institutions would follow suit. This would be good for the crypto but only if the amounts bought up don't influence the market. Often, arguments against crypto come in the form that large companies would have control over the market. This could easily happen and we need to come up with something to prevent that from happening, we need more decentralisation...

7788bitcoin

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Quote from: The Cryptovator on April 04, 2021, 10:56:06 AM

To be honest this is something that we should worry about, and I wasn't aware of it. I am not expecting any institutional investors will take a stupid decision by offloaded their holding at a time. Because they should know about the risk that would happen after mass sell. Personally, I believe they are very clever and that's why they are accumulating Bitcoin. If they hold for years, there will be many new investors who would make a balance Bitcoin price. But I have to admit, anything would happen in crypto, we can just speculate, we don't know what will happen in the real situation.

If you look how these institutional investors manipulate the stock market then you will understand how easy it is for them to manipulate the cryptocurrency market and even with rules and regulations set to overcome these manipulation these institutional investors will always find a loop hole in the foreign investment policies of different countries and they are the ones that trigger the correction when they book the profit at once and you can expect the same in the bitcoin market as well.

perfect999

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Quote from: Ratash on March 30, 2021, 05:13:11 PM

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

You will have to be very careful while looking for such services, there are lots of scammers these days and most of the sites like this can disappoint. You can make use of Greyscale like some have said, but I know for sure that they are not going to accept you if you’re not an accredited investor; you must be earning over $200,000 and have over $5 million in liquid assets.

It is always best that you manage your cryptocurrency assets by yourself, you can just HODL if you don’t have the time to be trading, just put them in a hardware wallet like Trezor and hold them till price goes up to the level you want. Or if you’re in need of an account manager that will be trading it daily for you, if that’s what you need, you can look for a trusted expert around you, one that you can keep an eye and then be paying a percentage to them.

carlisle1

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Quote from: roosbit on April 04, 2021, 10:21:02 AM

The thing that comes to my mind with institutional investors having a big share of the bitcoin pie is control! Bitcoin being unregulated it's very easy for these guys to manipulate the markets to push out retail traders, if not that they can choose to dump their coins and crash the markets....but that's one side of the coin.

On the other side we could see these guys make the crypto markets less volatile as they would dump less, but whatever we do we need some institutional presence.

Their presence makes more people to gain interest, with those very well known personalities around,

the attracting sides of this market is very high, it's good in the other side while there's also bad sides as you point it out, control if been given to

those institutional investors, they can easily change the directions and the momentum to whatever they choose.

Also, the point that we need those kind of investors to support the market is for real, with them volatility might be lessen
as they are willing to catch those cheap coins and keep it till it reached their targets.

xZork

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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.

Karartma1

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as long as they keep those BTC out of the market I don't care.
A noteworthy demand shock is being created, as both small holders and large holders are respectively increasing their positions and this shortage of BTC in the market contributes to the fact that the price can't go much lower. On the contrary, the upward pressure is increasing.
Let the institutional players get in then, what's the matter?

kryptqnick

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If institutions are interested in long-term hodling and their share is indeed increasing (it's unclear whether this trend will persist), it's possible that the price will become more stable. I don't see anything problematic about smaller volatility of Bitcoin, I think it would be beneficial for those actually trying to adopt it as payment. But I'm not sure that the share held by institutions will keep increasing and that the institutions will only be interested in the long-term profit, so overall I don't see reasons to believe that the market is going to change significantly just yet.

The Cryptovator

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To be honest this is something that we should worry about, and I wasn't aware of it. I am not expecting any institutional investors will take a stupid decision by offloaded their holding at a time. Because they should know about the risk that would happen after mass sell. Personally, I believe they are very clever and that's why they are accumulating Bitcoin. If they hold for years, there will be many new investors who would make a balance Bitcoin price. But I have to admit, anything would happen in crypto, we can just speculate, we don't know what will happen in the real situation.

Ridwan Fauzi

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Quote from: Ratash on March 30, 2021, 05:13:11 PM

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

Depend on your analyst actually, like me who made this situation as a chance to gain profit for short term investment. Yeah, I'll have a prediction maybe will be different from another people there who choose long term investment just because they will think that instutional investor will make bitcoin more popular than before.

But, I just have a little think that instutional investor is quite dangerous especially at this situation. I mean, we are in pandemic where almost economic situation in this world is bad enough. So as they will find a temporary place to store their money rather than to store their money in fiat which is vulnerable to inflation. When the situstion is back to normal then there will be a chance for them to take their money back and make bitcoin price fall again.

roosbit

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The thing that comes to my mind with institutional investors having a big share of the bitcoin pie is control! Bitcoin being unregulated it's very easy for these guys to manipulate the markets to push out retail traders, if not that they can choose to dump their coins and crash the markets....but that's one side of the coin.

On the other side we could see these guys make the crypto markets less volatile as they would dump less, but whatever we do we need some institutional presence.

Vishnu.Reang

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Quote from: DoublerHunter on March 30, 2021, 05:23:14 PM

^ Yes, there could be a risk on the market price because they holding a big amount that anytime they will sell it at once and may have an impact on BTC price. Big investors like big institutions are considered as also whales but they don't have regularly playing the market, the most afraid is when they are all the same in the mind of selling their BTC. I don't know what will happen if most of them believe in FUD and do panic selling, BTC price will probably crashing out that causes a sudden dump. Nevertheless, in my mind thinking that it is impossible to happen, we are already in the middle in the mainstream, and BTC price keep growing.

The same can happen with large-scale individual investors who are holding large stash of Bitcoin. So why selectively point out the institutions? IMO, the bigger risk comes from individual investors. Institutional investors can afford to hold Bitcoin for 5 years or more. But that may not be the case with many of the individual investors. They may face financial difficulties and may need to liquidate their holdings in a short period of time. Therefore I would say that investment from institutions will help in reducing the volatility of Bitcoin.

galestorm

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It is said on the article that institutions and retail buys are balanced, for now it isnt a big risk. However, when institutions start to buy loads of bitcoins, the holdings that they have would be a potential risk to the bitcoin market and that it would result to rehypothecation. Ben lilly even said that he is worried that rehypothecation will take place off the blockchain. It's the non-transparent entities selling or lending the same piece of collateral twice. This type of behavior is what leads to vulnerabilities

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