Bitcoin Forum

I am just curious: Why do we need institutional money coming in to Bitcoin as if it is the one that can rescue Bitcoin from going down? Is this not an obvious sign that as a supposedly P2P currency Bitcoin is failing on this aspect?

Bitcoin is supposed to be in the hands of the people and not with institutions, or so that is the impression I got by reading some articles about Bitcoin and it should be taking the many traditional institutions by storm, right? Now, I am seeing that it is the other way around.

Please correct me if my impressions is really wrong. Or maybe I miss something here. But please don't insult my ignorance...

Bitcoin doesn't need institutional money to be successful. Though, having institutional money in helps bitcoin in terms of liquidity and it helps bitcoin finds it's sort of long term "stable" price. Regardless of what people's opinions are, that bitcoin should only be used by the people and such, there's really nothing you can do. Bitcoin can be bought and used and stored by literally anyone, which is one of bitcoin's most important advantages.

Don't trust the media. Just look for the facts they presented in the article. Most of the time they just quote opinion from one or two person and made it a headline.

Take a look at how the narrative went before and after the bull run, and you'll see why you should not trust them. Look for the facts, ignore the opinions and headline.

It's not really necessary for bitcoin's growth, but it's pretty useful. Full scale adoption of Bitcoin and other crypto-currencies will require institutional investments and big companies being invested in interested in the product. This might be what a lot of vision are eventually hoping for, but it's not exactly Satoshi's vision.

Don't bother with crypto journalism, except for a couple pockets of good writers, the entire scene is generally all shilling/fudding or just giving plain wrong information.

Bitcoin doesn't need institutional money flowing in but everybody that owns Bitcoin wants the money to come in because their holdings would increase in value.

Institutions which are primarily speculators only want profits and if they see that Bitcoin has enough liquidity and potential then they will get involved.

This is basically two fold, it might provide a price increase however look what happened with the Bitcoin futures? It basically was the top and the start of the long bear market. This is why many people back in 2017 were worried and they were correct that they would short the market and cause a crash.

I am sure that institutional money can be helping Bitcoin get more stable and yes in its liquidity and these can be helping Bitcoin be more known all over the world and can be a good catalyst for more adoption. Certainly, Bitcoin is fine without the coming of institutional money but since they are coming anyway why not just take advantage of it and enjoy the coming boom ride? I fully understand that Bitcoin should not be all about the money and it should not be seen as just an investment vehicle because Bitcoin is much more than that, but then again we are living in a world where realities should be dealt with. Certainly, there can be many things that Bitcoin or the Bitcoin community can be deviating from the original vision of Satoshi Nakamoto but there is a need to evolve and adapt otherwise we can be stagnant and not progress-oriented.

Remember, many of the recent people that bought Bitcoin has done this simply as speculators. These people could care less about Bitcoin being used as a currency, because in their countries, Bitcoin is defined as a Commodity and people are supposed to trade commodities.  ::)

In a lot of countries Bitcoin is not accepted as a currency and many people are simply using it as a alternative payment option, like you would use something like PayPal or your Diner's Club card.  ::)  <Most people use Payment processors to legitimize eCommerce with Bitcoin, because it is simply another method to use fiat after it was converted.>  ::)

The Institutional capital injection would possibly push up the price and these speculators will rejoice when that happens, because they can sell at a large profit.  >:(

That's a common thought out there that only the investments from institutions can push the price of bitcoin all the way up. Well i think it's rather the contrary as most of these institutions would prefer buying from OTCs which sells at a fixed rate other than purchasing from exchange platforms with fluctuating rates. After all, it's cheaper with OTCs if you are buying in bulk. I think the only factor to increase the price of bitcoin very high its the global adoption and use of it.

Also, this forum was built to get people informed so nobody takes pleasure in raising insults at you.

It doesn't need big companies and institutional investment but as a bitcoin holder myself and I'm sure a lot of other people think this as well, having institutional investments would definitely pump the price and I'm sure everyone would love that.

It's not all as it seems though, a lot of bigger companies don't actually use an exchange but instead choose to buy OTC, for a variety of reasons, for example, to be hidden in the markets.

Also, institutional investors = more companies interested = more adoption!

Actually institutional money has a good impact because it can increase bitcoin and is one of the main drivers of rising prices for bitcoin or cryptocurrency, even though institutional money is not in accordance with Satoshi Nakamoto's original vision but with the development of bitcoin or cryptocurrency we also need to evolve which can trigger an increase in the price of bitcoin or cryptocurrecy.
and most likely in the future there will be other revolutions or other unexpected things.

Saying that BTC needs institutional money is not exactly correct. It doesn't. However, it could help. If institutions start dealing with BTC, more individuals are likely to trust them, and finally start using BTC themselves. Institutions might also help the price stabilize, and speed up the process of regulating and adopting cryptocurrencies. All in all, they are not necessary, but they could be helpful in the long run. In the end, the goal is to have the entire world using crypto, be they institutions and companies, or regular people.

We need institutional money to come in because we want the price to rise. In case you haven't noticed, Bitcoin has become more of an investment, of a speculative asset, of bears and bulls, and not really about as a currency, of where to spend them as real money.

Institutional money flowing in does not mean a growing adoption of Bitcoin as a currency. It represents the growing demand of Bitcoin as an asset. Is it good? Yes and no depending on how much weight we assign to Bitcoin as a currency or as an asset.

Although I'd be very happy if institutional players would come in and buy Bitcoins in bulk, I'd be a lot happier if ordinary people will buy Bitcoin even in small amounts and spend them.

Institutional money is a good thing until it does not take over the market and try to manipulate it for their profit. Obviously the main reason behind the institutional money is better return on investment but we can make use of it during the price rise and it will be ourself or somebody else who will be at the receiving end when they cash out. We have already diverted from the basic reason why bitcoin was crested a sit was th e need of the hour and we can not afford to go back to the beginning so as you mentioned we need to ride with the wave.

Most of the institutions are attracting to bitcoin as asset and they are investing in bitcoin for bitcoin futures contracts

institutionals have really great amount of money, so this could be a nice reason for pump.
Speculation, my friend

I favor institutional money coming in to Bitcoin as this will greatly improve its liquidity! Additionally, the arrival of financial institutions into the Bitcoin bandwagon may have a positive influence on how most people perceived it especially in bolstering investor's confidence making it more mainstream and adoptable. Imho.:)

Bitcoin at first didn't really relay on the institutional money and still doesn't to a certain point, as bitcoin started as a new way to use money on the internet and a new currency to replace the centralized fiat, but as time went one and more people got into it it turned into pure investment where people don't really care what bitcoin is or what reason it was made for they just know that it has value and it gives them profit, and because of that the user base of bitcoin is more based on that rather on the actual nature of it.

First and foremost, what are you talking about?  And what do you mean by saying institutional money is coming in to rescue bitcoin from going down? What you should understand is that, Bitcoin is not going down and does not need rescue as you think.  You just don't really understand anything about bitcoin and the entire crypto ecosystem. If you did, like you will not be making this kinda post here. Please spend time to understand the entire Bitcoin ecosystem.

Do you have the link? Let us all verify what you have read then maybe we could straighten up everything.

Maybe, the wrong idea is not from you but from what you have read.
What if that article is from an institutional group which are claiming that without them bitcoin have not gone this far?
Have you tried to think like that?
In this world of internet lies could be spread easily. You just pay one group in social media and it could scatter in just minutes. Be really careful with those.

In my opinion, bitcoin does not need institutional money, because indeed bitcoin was created decentralized. What that means is bitcoin
can be owned by anyone and no one can control bitcoin. Indeed logically if institutional money comes in, prices can be more stable. But
it can also have bad consequences, that is, market manipulation can occur and if this happens, it can dangerous in the future. My advice
is to let Bitcoin run as it is without institutional interference, and not too much trust the media. They only sell interesting news and are
wrapped with lies in order to seek public attention.

that is completely wrong, bitcoin does not need institutional money coming in. and this has nothing to do with its price going up or down. for 10 years price has been going up without any institutional money coming in! and it will continue that way.

the thing is that some people think of bitcoin as some sort of asset, maybe like stocks or something and think its only usage is for investment so they consequently make the conclusion that to rise it needs more investors and what better than institutional investors.
but these people are the same newbies who panic sell each time there is some FUD because they haven't understood what being the only true decentralized currency means. and that is all that bit coin needs for rising.

bitcoin does not need institutional money. for these reasons
1. institutional money = institutional rules of handling bitcoin
2. bitcoin is suppose to be a free choice option away from relying on institutions/custodians
3. the price bump of institutional money does not help bitcoin

lets concentrate on (3). throwing in large amounts just pushes a price up. but the VALUE / underlying support does not change. thus it just creates more volatile speculation spikes/bubbles that correct down again.

people that scream and demand for institutional money dont care about bitcoin longevity /sustainability. they instead looking for a bitcoin exit so they can return to fiat

bitcoins longevity/sustainability is not based on market prices or exchanges or anything institutional. its instead about keeping bitcoin USEFUL for everyday people who want to remain using the bitcoin network. and no this does not mean sidelining people off to altnetworks and strangling bitcoin transaction count ability.

I guess the explanation is that since bitcoin is already a traded asset, we need the price to go up. So obviously, Wall Street hotshot or some big institution are needed to push the price even higher. I understand the OP's sentiment that bitcoin should be P2P, however, he/she needs to understand that bitcoin of today is already a speculative asset specially when the price started to gain traction in the market, from $0.01 to $20k, in 10 years, meaning money is really flowing in. Yes we can still used it as a P2P, however, it could also be look at store of value or an investment platform. So more money coming in, means the price could shoot up in the future.

Yes bitcoin needs institutional money but not only institutions but from all people in all kinds of life. Bitcoin has a value because there is a demand for bitcoin and that certain demand gives bitcoin a value. Without demand then there will be tremendous selling spree in the market.  But with a large number of people as well as companies and institutions supporting bitcoin then the market price wont drop drastically.

Your analogy is correct really concerning the objective of bitcoin but the issue is about the unsatisfying nature of human beings. We are always in the quest of wishing that bitcoin price goes to the roof. The all time high period be return without knowing or understanding the cost of it. One generally accepted ways to which price would achieve that objective is that there is need for news funds to come in which can either come from individuals or institutions. The question is that can we be patient enough to allow the needed capital come from individuals or because of motives accept the inflow from institutions which could make funds from individuals a joke. Each of those options has its implications which is what we are seeing now.

We don't necessarily need the money from institutional investors in order to progress or move forward. We can do that as a community, though I would not lie that institutional investors' money just sped up the process and increased bitcoin's valuation by lots of miles. Having said that, they can leave the economy at any day and we can still make changes, post records and be moving forward without the millions flowing in on the economy everyday. We aren't basically dependent on their money during the early days but since people found out about bitcoin's trading properties, capitalists capitalized on this and entered the market, supplying it with money and the birth of bitcoin's price volatility is sealed.

What you've been missing is fact-checking, you don't need to believe everything you will see, everything you will hear, and everything you will read anywhere especially from media, they used to cut out details and emphasize something wrongly, making a biased and the most one-sided thing you'll ever encounter. But it's very healthy and essential that you are taking time asking questions you didn't completely understand or might mistake. Well, on the other hand,  bitcoin doesn't necessarily need institutional money but it would be very helpful to have some for liquidity and stableness of the coin.

That is not possible today, but maybe in future. there are some reasons that you can find why institutional investors have mostly stayed away from the crypto world. for example, they are constrained. if they buy a million barrels of crude oil, they have to find a big ass tank, pay to have it stored and insure it. If that goes missing if they have been negligent they are going to jail.

Same thing with bitcoin. security of keys and wallets and cold storage is a huge deal. Anything goes wrong and you could easily see a billion dollars worth of crypto disappear. I think ETFs provide a necessary basis for institutional players to take a dive into the market. Further, regulations are yet to seriously tackle cryptocurrencies, and ETFs would speed things up at the government offices.

Wouldn't them leaving the economy again would reverse all the effect? Them leaving means they will end up dumping a lot of coins thus causing the market to crash (which would then cause further crash as people starts to panic). The increased valuation would then be just considered as temporary. It is better to move on our own instead of just waiting for those industrial investors. True they joining the market will act like a catalyst speeding up the process.

Bitcoin is for everyone, individual or institution, it's open for everyone, institutions are coming in because they see it's potential,  whether they want to get involve or not, Bitcoin will be adopted anyway, the technology behind it and the promise of profit will make everyone to come to Bitcoin whether it is coming from institutions or individual, because, not only institutions are capable of pushing Bitcoin's price, the collective effort of every individual can do that.

Institutional money into bitcoin will enrich the growth of the market directly and indirectly. In simple when institutional investment increases automatically the circulation of the assets will increase. Same time this will enhance the trust among public, because even after ten years of usage and growth in all areas people lack trust over bitcoin and other cryptocurrencies. It is termed volatility will also stay within limit, but I don't think this is achievable.

Bitcoin is already successful as it is. Its not adopted world wide but its still being used by us. The price of the coin isn't how its measured for its success, but how its being used by the community. Right now we kept sending and receiving BTC which is exactly how it should work as currency just as how we use fiat. The price is just for the currency exchange where we speculate how much can it be but we don't need institutional money, its them that needed BTC that is why they need to come into the crypto market.

no need, i just think , just let btc growing nature .
of some institutional come . okay we have no worry about falling price but behind it , it's not decentralized anymore. that make bitcoin unique than other's .
i just wondering , if bitcoin will be backed by some institutional , i personaly will lost interest.

Maybe you need that. I need the price to remain stable because stability is the main concern of merchants.
Even traders don't need for it to go up by a lot. It can remain in a +/- 1000 dollar channel and it's fine for them. So who needs it to shoot up by 100% or more? Mainly greedy fresh investors who look at it like it's some get rich scheme.