Is institutional capital good or bad for Bitcoin?

[jaysabi]

Definitely it's a good thing. there is no way to solve bitcoin volatility unless somebody wanted to invest a lot of money to stabilize the price, buying bitcoin when the price relative to a particular fiat currency goes below the target, and selling bitcoin when the price goes above the target. Without such a stabilizing force, bitcoin will remain volatile while it is in the early stages of adoption and demand is fluctuating and ultimately unknown. when more institutional investors come to the Bitcoin market, we should see volatility decrease, and this problem will be solved soon. Hence, institutional investors help a greater adoption with their funds.

I agree that institutional capital is good for Bitcoin, especially in terms of adoption, however I don't think that will influence the Bitcoin's volatility. Bitcoin is not functioning as traditional currencies and volatility is part of it's functioning, Bitcoin is not stable but its nature. No amount of investment will make Bitcoin to become stable currency.

Bitcoin is like a product to which its value will depend on the demand of its consumers. Institutional investment is all about having money to purchase like real estate property to which it is more solid form of investment compared to bitcoin. However, it needs a huge capital which only few could afford to do it. Besides even if one can afford to invest in real estate property but still bitcoin has the edge of earning huge compared to institutional investment but it could be more risky than institutional investment.

That's not what institutional investment is.  Institutional investors are simply people who manage large pools of assets on behalf of a group, like a sovereign wealth fund or pension managers.  When seeking capital, companies like to target institutional investors because of the large pools of capital they have and are looking for investment.  The amount of institutional investment happening in crypto is extremely small.

[deisik]

Definitely it's a good thing. there is no way to solve bitcoin volatility unless somebody wanted to invest a lot of money to stabilize the price, buying bitcoin when the price relative to a particular fiat currency goes below the target, and selling bitcoin when the price goes above the target. Without such a stabilizing force, bitcoin will remain volatile while it is in the early stages of adoption and demand is fluctuating and ultimately unknown. when more institutional investors come to the Bitcoin market, we should see volatility decrease, and this problem will be solved soon. Hence, institutional investors help a greater adoption with their funds.

I agree that institutional capital is good for Bitcoin, especially in terms of adoption, however I don't think that will influence the Bitcoin's volatility. Bitcoin is not functioning as traditional currencies and volatility is part of it's functioning, Bitcoin is not stable but its nature. No amount of investment will make Bitcoin to become stable currency.

Bitcoin is like a product to which its value will depend on the demand of its consumers. Institutional investment is all about having money to purchase like real estate property to which it is more solid form of investment compared to bitcoin. However, it needs a huge capital which only few could afford to do it. Besides even if one can afford to invest in real estate property but still bitcoin has the edge of earning huge compared to institutional investment but it could be more risky than institutional investment.

That's not what institutional investment is.  Institutional investors are simply people who manage large pools of assets on behalf of a group, like a sovereign wealth fund or pension managers.  When seeking capital, companies like to target institutional investors because of the large pools of capital they have and are looking for investment.  The amount of institutional investment happening in crypto is extremely small

And why is it so small?

Right, because all those sovereign wealth fund and pension managers cannot invest in cryptocurrencies as their investment declarations don't list crypto as a legitimate asset for investment. Aside from that, you wouldn't really want your pension money invested in a speculative asset with nearly zero real life use. From their point of view (and it is not very far from how things stand in practice), crypto is just one big casino. Would you play with your life savings in a casino? Even if you would, most people wouldn't

[Shasha80]

For me, institutional capital is very good for Bitcoin, as we all know institutional firms have a large capital. Imagine they are going
to buy Bitcoin in large quantities, I believe the Bitcoin price will fly high. And there will be volatile prices, We must immediately use
this for taking profit. It's no longer a theory that they will dump Bitcoin after buying large amounts of Bitcoin. We as small fish must
be able to sell the Bitcoin we have before this happens. And it should be in the long run if more institutional firms enter the Bitcoin
market, it can have a good effect on Bitcoin. It's not even possible Bitcoin can truly be a global currency.

[iv4n]

Many times it was said here, bitcoin is here where it is (at current price and popularity) because of the people, but next wave that will push the price very high will be from money invested by institutions and corporations. Any capital that comes into bitcoin is good, it will boost entire market, institutional, from corporation, or anyone else is good. More money into crypto is good for all of us, as long as demand rising, there're more chances for price to sky rocket!

[0nline]

his is really why we need bitcoin to be more of a usable currency than just a speculative asset as that would give them more chance to take hold of the market strongly and be able to control it however they wish and like. These are guys who have been living their lives manipulating the fiat system, what makes us think the same will not happen in this scenario with bitcoin. I am still sure what we are experiencing right now is institutional played, so the answer to the OP's question is glaring from what we are seeing in the market presently.

[wanted sliter]

Bitcoin is satisfying to be an instant liquid currency and also satisfying to be an asset like gold.
But currently, the bitcoin market capitalization is too small compared to other currencies or assets, so bitcoin is easier to manipulate, especially with bitcoin derivatives such as margin, future, ETF. is riskier in investment.

[TheUltraElite]

Bitcoin is satisfying to be an instant liquid currency and also satisfying to be an asset like gold.

What is the meaning of "satisfying" here? Liquidity in bitcoin is still very difficult to attain. Many countries dont allow it to be transacted and some have been banning the use of it. Fiat is more liquid here.

Bitcoin should also not be compared to any precious metal. They are many difference between the two. Price is not a point is comparison of assets, rather the asset class is.

But currently, the bitcoin market capitalization is too small compared to other currencies or assets, so bitcoin is easier to manipulate,

Correct statement but wrong conclusion. Manipulation exists in every market, just that we dont see it clearly. It is a half-truth to sway on that motion but without volatility there would not be any interest in trading an asset.

Institutional capital helps manipulate bitcoin - it is possible but not confirmed and neither provable. This should not matter to retail investors though.

What is lacking is regulation but that is a topic for another discussion.

especially with bitcoin derivatives such as margin, future, ETF. is riskier in investment.

But those are niche products to trade on. Not every exchange allows those. Moreover ETFs are not yet prominent in BTC yet.

[jaysabi]

Definitely it's a good thing. there is no way to solve bitcoin volatility unless somebody wanted to invest a lot of money to stabilize the price, buying bitcoin when the price relative to a particular fiat currency goes below the target, and selling bitcoin when the price goes above the target. Without such a stabilizing force, bitcoin will remain volatile while it is in the early stages of adoption and demand is fluctuating and ultimately unknown. when more institutional investors come to the Bitcoin market, we should see volatility decrease, and this problem will be solved soon. Hence, institutional investors help a greater adoption with their funds.

I agree that institutional capital is good for Bitcoin, especially in terms of adoption, however I don't think that will influence the Bitcoin's volatility. Bitcoin is not functioning as traditional currencies and volatility is part of it's functioning, Bitcoin is not stable but its nature. No amount of investment will make Bitcoin to become stable currency.

Bitcoin is like a product to which its value will depend on the demand of its consumers. Institutional investment is all about having money to purchase like real estate property to which it is more solid form of investment compared to bitcoin. However, it needs a huge capital which only few could afford to do it. Besides even if one can afford to invest in real estate property but still bitcoin has the edge of earning huge compared to institutional investment but it could be more risky than institutional investment.

That's not what institutional investment is.  Institutional investors are simply people who manage large pools of assets on behalf of a group, like a sovereign wealth fund or pension managers.  When seeking capital, companies like to target institutional investors because of the large pools of capital they have and are looking for investment.  The amount of institutional investment happening in crypto is extremely small

And why is it so small?

Right, because all those sovereign wealth fund and pension managers cannot invest in cryptocurrencies as their investment declarations don't list crypto as a legitimate asset for investment. Aside from that, you wouldn't really want your pension money invested in a speculative asset with nearly zero real life use. From their point of view (and it is not very far from how things stand in practice), crypto is just one big casino. Would you play with your life savings in a casino? Even if you would, most people wouldn't

.

Couldn’t agree more. I would not my retirement assets invested in risky assets that are nothing better than a pure gamble. The problem with crypto is it doesn’t create cash flow and it never will, which means the only way you can ever make money on it is to sell it to someone else for more than you paid for it. Hard pass.

[djmixen]

Bitcoin is satisfying to be an instant liquid currency and also satisfying to be an asset like gold.

What is the meaning of "satisfying" here? Liquidity in bitcoin is still very difficult to attain. Many countries dont allow it to be transacted and some have been banning the use of it. Fiat is more liquid here.

Bitcoin should also not be compared to any precious metal. They are many difference between the two. Price is not a point is comparison of assets, rather the asset class is.

But currently, the bitcoin market capitalization is too small compared to other currencies or assets, so bitcoin is easier to manipulate,

Correct statement but wrong conclusion. Manipulation exists in every market, just that we dont see it clearly. It is a half-truth to sway on that motion but without volatility there would not be any interest in trading an asset.

Institutional capital helps manipulate bitcoin - it is possible but not confirmed and neither provable. This should not matter to retail investors though.

What is lacking is regulation but that is a topic for another discussion.

especially with bitcoin derivatives such as margin, future, ETF. is riskier in investment.

But those are niche products to trade on. Not every exchange allows those. Moreover, ETFs are not yet prominent in BTC yet.

Yes, before there are some of the countries don't like Bitcoin and they banned it as well, but as time goes by there are also some country who banned Bitcoin revoke it, were right they've adapted the concept system that bitcoin has. Meaning, We cannot deny that some of the institution capitalist are investing into bitcoin too because they something about it wherein some didn't see it.