Topic: What do you think will happen if... - page 2. (Read 524 times)

Investors come because the base market and the potential growth for that market is larger then they are.  The whole sector or any asset speculation possible can become over played if too many are chasing too few gains possible, some of it is time, development but also the natural propagation of usage across populations globally.  We know in some countries its about technology and infrastructure usage, even electricity infrastructure can be a limitation in non city areas I imagine that is still regularly a dynamic as a country grows.
   Investors arent the primary cause for any market, they need BTC and are benefitting more then we are from their external involvement though both parties should improve progress none of it is for certain and risk vs growth returns is always in question with waves of confidence on those returns.

If the institutional investors pull out thier funds at the same time, it will result in a very negative market movement since the demand for Bitcoin is being pulled out, thus a collapse is imminent.  But good thing is, it will be temporary because Bitcoin does not only rely on institutional investors.  there are many other factors that can contribute to the market price of Bitcoin.  Most of it is from an individual demand.  Also the development of technology behind Bitcoin can also serve as interesting factor to make people interested and eventually participate in the bitcoin economy.

This mean that Bitcoin will not die even if the institutional investors ad corporate pulled out their support.

I think the better question is,
Is cryptocurrency or bitcoin should I single that out, I it dependent on institutional investors or should I say the whales?

I think the answer would be very much no and if that be it then, we really ought not to be discussing this. Surely, institutional investors have got there influences in the sentiments that they create and bring to the market but that too is based on individual perception of the message they've received.

Before they started hodling large amounts, some of them tested the shores with as little as they could afford to lose and later went big. There are those who came in big as well but, they kept adding over time. Them backing out won't stop investors from investing. It would only mean a bearish session that would be later accompanied by the bulls.

That will be the real case to happen especially if those institutional investors have huge influence on social media for sure their announcement of departure will give big effect of bitcoin and might we will see huge number of people including lowbies will go out in the ecosystem. But this is almost impossible to happen since we know bitcoin gather a reputation has a place on financing system so maybe we can see this to continue and more country will adopt it.

If bitcoin or cryptocurrency is for the institutional investors and for the corporates, then what you said could happen. The reality is different, cryptocurrency is for everyone and for every level of people. Maybe the institutional investments altogether can contribute big and give them power to make disturbance. To what extent this will happen, beyond some point the market will not react as it have dependence over each and everyone and not on something particular.

Although it is impossible that all investors will stay away, this means that the crypto market is in trouble and a big problem. For, it will influence the market cap, trading volume, and also demand and supply of the crypto. But, what kind of crypto? All crypto or only certain cryptos? If it is certain crypto, it has been happening to the altcoins, mostly shitcoins that have no volume and liquidity again in the market. The result is that those shitcoins will be dead. However, if this is about Bitcoin, I am not sure this will happen.

agree. It is impossible to happen. However and no matter how strong they are, they will not be able to do that because the crypto world is complex and they need all lines to reject and bring down crypto. And it's going to be hard to happen because it involves a lot of people from all countries around the world.

whatever will happen in the future, if big investors stay away from bitcoin this could lead to a very sharp drop in price, if investors release all their assets
and it will be normal if they keep their assets where there will be many newcomers to crypto and want to keep it. the transaction will continue even though the price will not move fast

Institutional investors still has a role to play in the crypto space. It will have some effect on the market but if direct investor never lose interest in the coin, it will still help in improving the coin.

First I'd like to point out that it's impossible as institutional investors always invest in stocks, commodities etc which bring them most profit. As Bitcoin can be profitable, it's protected against inflation etc they will invest. Without any doubt.

But if institutional investors were to dump Bitcoin, it wouldn't have changed anything - countries, retail investors etc would still HODL. Lots of people would actually BUY Bitcoin in case such a black swan event would happen. If 2017 ATH happened thanks to retail investors, 2021 ATH thanks to institutional investors, 2024 ATH will be caused by nations and countries buying Bitcoin. 

If such situation should eventually come to play then by economical law it will deeply affect the value of bitcoin although it won't crash it cause there are other investors in bitcoin like you and me only that out investment is not that deep in amount like theirs, so there will be some staggering devaluation but am not sure any capitalist(s) in a global capitalist economy of today will want to think of making such irrational decision just take prove their stronghold on an asset like bitcoin.

Definitely. Even without them, the market can continue to thrive. We can just look at the early days when almost no institutional investor was interested in buying any amount of bitcoin. But did it stop? No. The way that the institutional investors are doing it, they really are a big help but it doesn't mean that the market will always be reliant on them. So, even without their help, that only means that the market alone will survive and that's for real. Although we want them to be part of this market so that it will be quicker for its growth or they'll eventually join because on how they're going to see things with bitcoin.

Institutional investors are not responsible for carrying lots of money and moving the market, but they are simply planning to buy in large quantities where the high demand factor will naturally make the price go up. In the meantime, I don't think institutional investors will be leaving the industry as they are starting to realize that bitcoin is good store of value asset instead of fiat. They may need to balance their balance sheet, and at some stage they may also sell it.

I don't think there is any higher form of concern than bitcoin holders about those institutional investors, and in fact we keep hearing that adoption is increasing day by day and in the end it will convince investors to continue to exist in this industry.

the fate of altcoins will definitely be completely destroyed but for bitcoin it is different. bitcoin is a decentralized asset and the amount cannot be manipulated, as long as someone is holding it, there is no need to worry about bitcoin going to zero even though all institutional investors are selling their bitcoin.

Indeed, not much has changed when Tesla started withdrawing from bitcoin. The market continues to return to normal conditions. Tesla has stated that they will stop accepting Bitcoin payments due to concerns about the environmental impact of Bitcoin mining. Tesla also stated that they will keep the Bitcoin they own and may consider re-using it in the future if Bitcoin mining technology becomes more environmentally friendly.

The population of bitcoin users is increasing and spreading in all circles, so there will be many opportunities for bitcoin to achieve even adoption. Bitcoin is still developing and still needs the support of all parties.

I would argue that the explanation is a bit more complex than that!

Bitcoin could still be traded even if nobody needs it. When the tulip bubble popped in the Netherlands, everyone asked themselves why the tulips were traded in the first place. Did anyone need tulips?

I guess any "thing" out there that is expected to increase in price (not necessarily value) for rational or irrational reasons will still attract some interest.

The interesting part about OP's question is that it doesn't matter whether institutions need it or not. If anyone at a scale large enough needs it, institutions will also get in. The same counts for the other way around. If Bitcoin one day became the major tool for institutional transfers, retailers would also have a good reason to get in.

Analysis of behavioral economics can be extremely interesting at times. Even if you are the only person with 100% correct information, which is telling you that Bitcoin will die in July 2024, it could still be the right move financially if you expect another bull run based on false assumptions by the masses. I am not talking about morals here, just the financial aspect.

With all that being said, I believe that by now the skin in the game concerning institutions is already significant. They won't just leave the space and also, a big advantage of this type of technology is the innovative potential due to being an open system / open source and scalable in many ways.

Institutions are a big chunk of investors and that would simply kill the potential for a massive adoption of this technology. But I doubt such thing will result to collapse in this industry. Individual investors are still here which serves as its community. If we would base from the past, institutions are in the first place not accepting cryptocurrency as a mode of payment but here we are, still growing in different aspects; people, countries, platforms. Also, it is solely dependent to institutions whether they would come in line with this technology and we cannot blame them if they chose not to. Institutions are into business also, so if they'd see something from this industry, they will be needing to adopt someday as long as they'd get something from doing so. Thus, we just all have to be patient for that.

Your opinions are welcome, we are all here to learn from each other and get updates about what is happening in the world. If your are confused about a particular thing, you can ask questions here but it will be wise if you can take a look on Google for answers on your own. If you are not satisfied with what you have seen then you can humbly ask here for further clarification or opinions.

If institutional investors which are the whales we are talking about eventually leaves the crypto market, whether for altcoins or Bitcoin, the market will suddenly crash because the movement of price is based on demand and supply. Maybe you can try compare the two by using demand and supply slop.

 The rate of input will determine the (T)Supply.

Input is proportional to the (T)Supply, just like

Increase in the input = Increase in Supply; Bull market leading to Increase in price of Bitcoin/Altcoins

Decrease in Input = Decrease in Supply; Bear market leading to decrease in price of Bitcoin/Altcoins

There is a market demand for everything and the price is determined by the demand from people, not just for bitcoin and cryptocurrencies. Consequently, if people stop buying something one day, the price of that asset can fall to a lower level so that there will still be demand from people. However, if there is still no demand from buyers, then the price will still fall to the lower level, and so the story continues. There is no limit to what can be said about bitcoin, there is also the same thing with all assets and products around the world.

Do you think it will be possible to convince all the institutions around the world to take a decision of not getting into crypto investments at leave for this year? I don't think it will be possible to convince at least one country's all institutions. It might be possible only in North Korea and China but no where else in this world.

If there would be any severe tread of falling down from the side of bitcoin investment then people will stay away from bitcoin and not just institutions. Such threads has not arrived in last 14 years hence why we need to worry about institutions to stary away from bitcoins. They will keep adapting bitcoin and bitcoin will keep moving toward starts for sure. No changes in it unless otherwise we get any bad news which is bigger than pandemic.

it's definitely going to have a big impact if institutional investors get out of crypto because as you said they have enough cash to buy bitcoin and that could influence the market to go up significantly. However, it is impossible to get out of crypto because logically, from year to year, institutional investors reap quite fantastic profits from the investments they make.

we have passed a crucial stage in the last year which resulted in a pretty chaotic market situation, but is there any news saying institutional investors are leaving because of course not, a strong reason because they know today modern era is a crazy thing to make money in business cryptocurrencies.