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Topic: Risks of instituations holding bitcoin - page 3. (Read 702 times)

member
Activity: 297
Merit: 40
April 03, 2021, 10:34:30 AM
#54
Yes, there is a risk, there is always a risk in hodling a bitcoin, especially those institutional investors as they have bought a huge amount of bitcoin, they are also considered as one of those whales because of hodling that amount, so they may also affect the value of the bitcoin in the future, for sure they will hodl it for years because that is what institutional investors are used to it unlike to those investors who can hold their bitcoin for years because of some personal reasons.
Institutions are part of the increased in price we are experiencing today. It is not bad about it. Bitcoin is for everyone. They will manage their asset (Bitcoin) but not yours.
That is true, that is why we are still in the bull run, those institutional investors have a really big impact on the value of bitcoin. Yeah, nothings say that bitcoin is not for everyone, people who want to explore and buy bitcoin are free to do it.
hero member
Activity: 1302
Merit: 503
April 03, 2021, 10:24:35 AM
#53
^ 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.

I don't think that institution is that careless when it comes to selling their asset.  Remember they are here to make profit not destroy their possible source of income.  So I guess having institutions getting into the game simply means a more intelligent decision on the market is at hand since they have to consider a lot of factors that a single person does not necessarily think of when it comes to cashing out their holdings.
- Agree, when determining participation in a certain project, organizations always need to very closely monitor their investment, their decisions may affect the future of so many people, they will not play around and engage based on emotion here, damaging bitcoin is definitely impossible, they can even further stimulate the value of bitcoin based on the amount of capital they own. The only thing that I and many people feel insecure about is our selves, large organizations always show great control over the market, wrongly guessing their thoughts, holding bitcoin will become more dangerous for us.
member
Activity: 518
Merit: 13
April 03, 2021, 04:33:09 AM
#52
The risks for the individuals are also valid for the institutions also. But there is no doubt that these companies are already aware of it and their aim is to make investments for a long-term. We can name them as "whales" also. Their impact on the market is really too big. We are talking about million-dollar and even billion-dollar investments in the end.
jr. member
Activity: 644
Merit: 1
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April 03, 2021, 02:11:27 AM
#51
Institutions are part of the increased in price we are experiencing today. There is not bad about it. Bitcoin is for everyone. They will manage their asset (Bitcoin) but not yours.
sr. member
Activity: 1680
Merit: 379
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April 03, 2021, 02:07:02 AM
#50
Is is a positive thing that there are now more people participating in bitcoin. The risk from big institutions holding so much could be that we see wealth concentration which could lead to a certain level of centralization. Eventually these institutions might use BTC to pay off their debts or as payment and we will see better distribution. Right now these concerns are just a possibility of what could happen but it is not an immediate threat.
hero member
Activity: 1498
Merit: 711
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April 03, 2021, 02:05:10 AM
#49
What is the risk there when it's obvious that every business is under the conditions of risk, using billions into cryptocurrency that it will hold for future purpose, the gravity of it's risk is equal to the level of risk of finance use to adventure into any order businesses, so the institutions of holding Bitcoin or other cryptocurrency should be consider as a factors that is making Bitcoin to go further more than our expectations, so in summary since it's noticeable that many companies are coming into cryptocurrency more especially Bitcoin.
newbie
Activity: 15
Merit: 0
April 03, 2021, 01:54:55 AM
#48
Any person or company that is holding a Cryptocurrency is already at a risk. I mean just holding one is already a gamble. So for a company like this, that stakes a huge amount of money is already risking it. But for sure they have plans for why did that and they have teams and experts that have brainstormed what their plan will be.
full member
Activity: 868
Merit: 108
April 03, 2021, 01:34:29 AM
#47
Yes, there's a big risk if they're holding a big amount of bitcoin but yes there's a big possibilities to them to earn big and make their future better, the only things they need to do is to believe that bitcoin is the gate of success but patience is the key to reach that success.
member
Activity: 1120
Merit: 68
April 03, 2021, 01:27:13 AM
#46
I don't think institutions holding Bitcoin are anything to worry about. Because pump and dump has often happened to Bitcoin, so if there is
an institution that sells all the Bitcoin it owns. Then there will be new institutions that buy Bitcoin, after all, there is not only one institutions
holding Bitcoin. And I believe all institutions that hold Bitcoin may not sell Bitcoin at the same time, so I am not worried about the many institutions
holding Bitcoin.
You may not worry now but when there is more institutional money coming in to buy bitcoin and hodling then and there you are going to see that it is a bad thing for the individual investors, pump and dump is not going to be an effective strategy anymore because most people knows that whenever there is a dump, they can just hold it out and wait for the price to bounce back or buy more bitcoin at lower price and hodl. The problem with more institution hodling their bitcoin while accumulating more is that they can contribute to the rise of the price which can gatekeep some individual investor.
hero member
Activity: 2114
Merit: 603
April 03, 2021, 12:26:35 AM
#45
^ 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.

They will never to panic sell mate. They are the reason bitcoin is holding it's current position. Institutional investors are those who want highest possible rate for their holdings. They are big game players and do not want 50K, 60K! They are dreaming of 100K and plus for the bitcoin. Institutions know that if they start selling then rest of the market will also do panic sell thus changing the whole math of their plan.

It's like if they are able to hold the bitcoin at highest prices then they could possibly destroy it too. However, they won't because they are staking bigger amounts which they dont wanna loose in the process.
hero member
Activity: 2562
Merit: 577
April 03, 2021, 12:25:13 AM
#44
Institution buy btc and hold, 'it is a risk' individuals buy btc and hold, 'it is a risk'  (whales and the likes) which means this is an inevitable case which the btc community must have to accept,
it is already too late to expect even distribution, there is always going to be some party having a larger share of the supply than others,
This can't be balance, if we want Institutional investors to be part of the space then this is some of the consequences of their involvement I presume.
legendary
Activity: 2982
Merit: 1028
April 03, 2021, 12:07:07 AM
#43
I don't think institutions holding Bitcoin are anything to worry about. Because pump and dump has often happened to Bitcoin, so if there is
an institution that sells all the Bitcoin it owns. Then there will be new institutions that buy Bitcoin, after all, there is not only one institutions
holding Bitcoin. And I believe all institutions that hold Bitcoin may not sell Bitcoin at the same time, so I am not worried about the many institutions
holding Bitcoin.


yeah right, there's always someone who will willing to absorbed those sold coins, and vice versa.

We should always aware ourselves to whatever position we took from this venue of investment, the

more you understand the more you can easily position yourself.

It is definitely risky for retail investors when institutional investors get in because they can do a hodl of their bitcoin for a really long time and comes with that is it raises the prices that might dishearten upcoming retail investors from investing because they won't be getting a lot of bitcoin value for the money that they are going to invest in, the only thing that I can think that can entirely negate this risk is for retail investors to get in right now, right now that the prices are still manageable and you can still get more value.

The earlier the better,  who knows what inside the minds of those institutional investors. It's difficult

to predict  what future awaits to this industry, the system is now being eyed by many institutional

investors, with them there's always the huge change that might happened.
member
Activity: 868
Merit: 63
April 02, 2021, 11:46:18 PM
#42
It is definitely risky for retail investors when institutional investors get in because they can do a hodl of their bitcoin for a really long time and comes with that is it raises the prices that might dishearten upcoming retail investors from investing because they won't be getting a lot of bitcoin value for the money that they are going to invest in, the only thing that I can think that can entirely negate this risk is for retail investors to get in right now, right now that the prices are still manageable and you can still get more value.
newbie
Activity: 64
Merit: 0
April 02, 2021, 11:25:00 PM
#41
Along with the explosion of interest in digital currency and all of its implications for both new and traditional businesses, there is a growing need for clarity regarding the legal implications of these new technologies and currencies. As governments around the world, regulatory agencies, central banks, and other financial institutions are working to understand the nature and meaning of digital currencies, individual investors can make a great deal of money investing in this new space.
legendary
Activity: 3010
Merit: 1280
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April 02, 2021, 09:52:48 PM
#40
^ 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.

I don't think that institution is that careless when it comes to selling their asset.  Remember they are here to make profit not destroy their possible source of income.  So I guess having institutions getting into the game simply means a more intelligent decision on the market is at hand since they have to consider a lot of factors that a single person does not necessarily think of when it comes to cashing out their holdings.
legendary
Activity: 2534
Merit: 1338
April 02, 2021, 09:41:23 PM
#39
They will sell and could crash the market very deep and for a long time but I'm not seeing it happen very soon as the USD is also deflating. Institutions are just too rich though and when they buy again for low prices, there's going to be a lesser supply for retail inventors. The risk is when they could stabilize the price of BTC in the future, it ain't going to be good for retail investors anymore.
That is exactly my point, yes they can do it if they want but are they going to crash the market just for fun and lose a fortune in the process? That is incredibly doubtful, they are going to do everything to sustain the price of their investment, similar to what we have seen with the whales doing over the years, so unlike others I do not see as much risk as other people do but it is without a doubt something that must be monitored in the case it actually happens.
hero member
Activity: 2044
Merit: 784
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April 01, 2021, 12:27:18 PM
#38
The biggest risk when institutional investors hold Bitcoin is they sell off their Bitcoins together and buy them back at a lower price. Bitcoin has had many strong increases and decreases in price, so as long as Bitcoin falls in price, someone will buy them in bulk. One look at the figures shows that each discount is each time someone collects Bitcoin in large quantities.
Institutions are also whales and use the same tricks to maximize their earnings in the market. What the common investors should do is to not follow their actions or act impulsively.

Many institutions invest in Bitcoin and I don't think they will sell off bitcoin at the same time to devalue. If we do the same, not all organizations will benefit from it.
I agree. If whales are going to sell, just don't sell your btcs, otherwise, as you said, these big investors will buy another investors' coins in large bulks, increasing their own shares and excluding another potential investors from making profit through bitcoin price's increasements on long run.
sr. member
Activity: 1414
Merit: 326
March 31, 2021, 10:41:54 PM
#37
As long as bitcoin has a pump dump no organization can stop it when dumping starts you have to sell it without holding it the risk will be much less. The bull run in the market but not all companies sell the same way bitcoin is being used in online transactions in many countries as well as being used as storage materials its price is very high and due to the increase in price investors are getting good profit from it very fast. For this reason in many countries private organizations have been formed to advise on bitcoin investment while companies that hold bitcoin have risks new companies are reaching better positions.
hero member
Activity: 2114
Merit: 619
April 01, 2021, 12:14:53 PM
#37
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
I think this is a classic myth. I am saying this because for people it's not about holding one unit of BTC or holding one mBTC it's just about earning, holding & spending BTC we still are not pegging things in bitcoin. Secondly scarcity of supply is more like a myth. Until we reach 1 sat=1$ I feel it's nothing like scarcity of supply because as the demand by institutional investors would move upwards the price would increase upwards at a very similar pace therefore there is negligible risk that we might run out of BTC. Talking about the risk of Rehypothecation, as long as the investors are educated and know what bitcoin actually is chances of making rehypothecated assets is pretty low.
full member
Activity: 504
Merit: 102
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April 01, 2021, 11:57:15 AM
#36
The biggest risk when institutional investors hold Bitcoin is they sell off their Bitcoins together and buy them back at a lower price. Bitcoin has had many strong increases and decreases in price, so as long as Bitcoin falls in price, someone will buy them in bulk. One look at the figures shows that each discount is each time someone collects Bitcoin in large quantities.
Many institutions invest in Bitcoin and I don't think they will sell off bitcoin at the same time to devalue. If we do the same, not all organizations will benefit from it.
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