Here’s Why there is Institutional Money in Bitcoin and Crypto
The institutional money in Bitcoin and crypto mainly exists because of hedging by the big guns.
The institutions have finally figured out that people can’t be trusted, but the math that governs blockchains can.
They have also seen that Bitcoin and crypto are the newest kids on the block as far as assets are concerned.
Some also saw that digital assets are the future.
The second reason is that there is institutional money in bitcoin and crypto.
The third reason is that Bitcoin and crypto are gaining recognition and popularity in terms of pop-culture.
Bitcoin and cryptocurrencies have become well known in the hearts of just about anybody.
Institutional money might lead to the mass adoption that we are all looking for.
The Institutional Money in Bitcoin and Crypto is the Perfect Hedge
We live in interesting times.
The world is changing faster than most people can imagine.
We lose jobs faster than we can replace them.
The geopolitical balances that held the world together are now a thing of the past.
The powers that be are always trying to find alternative ways to outwit each other.
These are the signs that the world is moving into the next age.
The current economic chaos has made for uncertain outcomes.
It is because of this uncertainty that the big guns made their moves.
They bet big on Bitcoin and crypto.
The institutional money in Bitcoin and crypto exists mainly because of uncertainty.
The uncertainty itself is palpable.
No one can say for sure when the dollar will regain its lost strength because of inflation.
The enormous amounts of quantitative easing performed last year by the US Fed led to excess liquidity in those markets that are performing well, technically.
The problem, though, is that these markets don’t have solid fundamentals to keep them robust.
Institutional monies in Bitcoin and Crypto provide the best haven against runaway inflation when the US and the Global economy recover.
The massive roll-out of COVID-19 vaccines is one sure way of getting everyone back on their feet.
And with the vaccine roll-out, we shall see higher levels of economic activity on a global scale.
This roll-out will ensure that the Institutional Money in Bitcoin and Crypto serve other purposes as well.
Bitcoin and Crypto are Perceived to be Assets
It is important to remember that before 2017, the world struggled to know about Bitcoin and crypto.
Then 2017 came and left and suddenly everyone seems to know a thing or two about Bitcoin.
At least, Bitcoin is synonymous with crypto.
And then we had 2019 when crypto winter thawed and then people started knowing a bit more about the cryptospace.
It was in that year that the term digital assets became a popular lexicon.
Since then, many people are now able to perceive that Bitcoin and Crypto are now the standards for digital assets.
Then the big dogs came in with their massive amounts of cash.
Micro Strategy, Grayscale, Goldman Sachs, JP Morgan, and even Billionaire Stanley Druckenmiller have all put their monies in crypto.
Now, we have everyone looking at the prices of cryptocurrencies going from one all-time-high to the next.
We are in a period where Bitcoin and crypto are going mainstream.
The institutional money in Bitcoin and Crypto is just the beginning.
Institutional Money Flows are Going to be Long Term
After thorough research and analysis into the cryptospace, the big dogs figured out what the members of the cryptospace knew all along: Crypto is always best-held long term.
It has also allowed the new members of the cryptospace to become better at holding crypto.
Let’s face it.
These guys are the master of the financial universe.
They have unimaginable amounts of money under their belts.
They can virtually do anything and get away with it.
Their inflows into the cryptospace will enable innovation.
However, they profit when a single project achieves adoption.
And there are so many of these projects.
The issue is finding the right one that will give the most profits.
And these guys know which ones provide such profits.
The inflows of institutional money in Bitcoin and Crypto provide the much-needed attraction for young talent into the cryptospace.
People are now doing things they never thought possible because the big guns are now the new whales.
New HODLers Will Bring in Further Inflows
As the institutional money in Bitcoin and crypto continues to grow, we are also going to see the new HODLers increase in number.
The reason for this is that everyone knows the mutability of blockchains, the transparency of transactions, the expected end of blockchain life-cycles, and so on.
The problem is where, when, and how these blockchains and their tokens appreciate and why.
Luckily, those are also easy to deduce.
The other thing that the big guns have going for them is that they have all these tools to determine entry and exit positions.
It means that they will always be in profit one way or the other.
So, while a major hedge fund will primarily HODL tokens, they will also find ways to do other stuff that serve as a hedge against them.
We shall surely see the emergence of new kinds of crypto-base derivatives in the coming years.
It also portends that the future of the cryptospace will have so many complex ecosystems that revolve around blockchains so the big guns make even further profits.
Centralization is Dying
We live in a multipolar world.
The aim of the centralization of everything was for uni-polar societies.
Now, the emergence of the internet, with highly intelligent and knowledgeable people, has made it so that we no longer have central authorities in control of everything.
The central authorities can at best influence to a limited degree what everyone else is doing.
But decentralized technologies can create new forms of self-governance and regulation.
It also allows for things to run smoothly in case central authorities break down.
The rise of distributed ledger technologies has given us a new paradigm for internet operations.
Institutional money in Bitcoin and crypto will enable this to happen at a faster pace than usual.
Institutions will Invest in Decentralization and Bet Big
When it comes to institutions, there is nothing more interesting than investing in the future.
And yes, institutional flows into sectors have historically buoyed those sectors up until they achieved critical mass.
As there are huge inflows of institutional money in Bitcoin and crypto the same and more are expected to occur.
We are also going to see the institutions take the lead in ensuring that new kinds of assets take their place in the financial hierarchy.
And from all indications, that financial hierarchy is at the top.
As they continue to pour institutional money in Bitcoin and Crypto, we will see faster and further adoption of distributed ledger technologies by just about everyone.
Distributed Ledger Technologies DLTs will rule this Decade
The current decade is not going to be ruled by central database systems.
Rather, the various variants of Distributed Ledger Technologies (DLTs) will be at the top of the food chain.
While it may not seem so, the world functions on change!
Central database systems were great for their time and era.
Distributed Ledger Technologies (DLTs) and their variants hold that will give the world the future.
That future is now!