Is institutional capital good or bad for Bitcoin?

[Spaffin]

I understand that any capital for Bitcoin has a very important role, because its price equals its capitalization.

any capital ? what if thier capital comes from stealing , hacking , and any other illegal crimes and then they put the money on bitcoin ,  do you think its important or good ?  no thats bad but other bitcoin hodlers think that its still beneficial because the value of bitcoin will be up and old hodlers will get benefit the most  .

But if we talk about the owners of Bitcoin, then most likely it will be a bit more difficult for a company to have Bitcoin, because there is more than one manager there, unlike a big whale.

what about a big whale ? i think they are the same as a company or institution and they are also a group that compose of many members  but anyone can buy thier own bitcoin if they wanted to   .

I have always perceived large whales as an individual who privately owns cryptocurrency.  Although if you take into account the effect on the cryptocurrency market of cryptocurrency funds and user groups, they can be easily defined as big whales.  Apparently here I fully agree with you.  As for any type of capital to increase the capitalization of the cryptocurrency market, recently the words about the importance of the requirement to provide KYC have been heard very often.  In this way, you can get rid of funds obtained by criminal means.

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[Apaxy]

Recently, information has come to my eyes, where analysts believe that 2019 will be the year when institutional capital changes the course of events on the cryptocurrency market.  There are a lot of examples, but first of all I want to mention the fact that even reluctantly, but still the authorities of many countries see the inevitability of legalizing cryptocurrency and therefore the negative on their part is weakening.  But I also want to draw attention to the fact that the popularity of cryptocurrency futures, derivatives and forwards is growing.  So we only need to wait for the "high point".

[freedomgo]

I think institutuonal investors are just like ordinary investors: taking profits after their investment gains. The only difference is that they have big funds that enough to push the bitcoin up to a new level. The price will naturally go down if these big investors start their profit-taking months or year of holding the bitcoin. The dump created by these investors should give us another opportunity to buy bitcoin at a lower price.

They are different, investors means they are gonna be here in crypto starting to run their business.
Big companies can integrate crypto in their payment system and that means institutional money to be in crypto and they are different from investors who sell when they are in profitable because they are here to help increasing the adoption with their influence.

[Bezobraznike]

I understand that any capital for Bitcoin has a very important role, because its price equals its capitalization.  But if we talk about the owners of Bitcoin, then most likely it will be a bit more difficult for a company to have Bitcoin, because there is more than one manager there, unlike a big whale.

   That`s why people think of Bitcoin as a store of value. Any capital is good for Bitcoin without a doubt, and I`m thinking that companies that buy Bitcoin they will not do that just
for short-term gains.
    When companies start to invest in Bitcoin it meas we are close to the full adoption. Huge money will flow into crypt-currencies, cause there will be not enough Bitcoins for everyone
and every company. They will have to buy some other crypto-currency!

[hotforblockchain]

Theory that large buy and sell actions cant destroy btc is BS. Only mining power over 50% can destroy BTC.

Large investment funds definitely are a good thing. More liquidity can do only good to financial markets.

[microsurfer]

It they will pump it - good, else - bad. thats simple

[Freny250]

Although it has its own consequence,  i still believe that institutional investors investment will have a great effect on the adoption of cryptocurrency and Blockchain technology. This will cause other individual investors to see how reliable crypto is

[casperBGD]

i think that it is good, BTC needs more capital inflow to keep it on these levels and go higher, or to be sustainable
without fresh capital, BTC could be on these levels, but when some whale wants to go out, it will downslide, every time

[pixie85]

Institutional money is great if it's going long. If this institutional money decides to short bitcoin we're gonna have a problem

Usually it's good because if a company invests it also makes a lot of noise in the media. They want others to hear about it and treat it like a bullish sign. There's at least 90% probability that when institutions enter they will pump prices.

[RealMalatesta]

It they will pump it - good, else - bad. thats simple

Well, They play both roles, institutional capital has a very great advantage, and they also have a very great disadvantage. When they pump money into the market, it will surely increase the marketcapital of the market that they pump it to, and we know what happens to the value of such coins, those who had invested before they pump the money would have the chance to have some profit based on their own increase while those institutions makes money off those that would out of fomo start investing when they see such increase, which usually come with a very high dump, and this is where it has its own disadvantage, so it depend on which part we fall into, either to benefit from their own pump or suffer losses when they dump the coin into the market.

[TheUltraElite]

Institutional money is great if it's going long. If this institutional money decides to short bitcoin we're gonna have a problem

Its both a boon and a bane. You cannot decide on one side of the deal only, but look out for the other side as well. Its like a double edged sword.

Usually it's good because if a company invests it also makes a lot of noise in the media. They want others to hear about it and treat it like a bullish sign. There's at least 90% probability that when institutions enter they will pump prices.

These institutions are more of a predator group who look out for whale signals and create their own whale signals. They want people to be influenced about a movement and they would go against that movement to grab the cash from them. Its not something that is good for bitcoin in the long term but for the traders, yes they help pumping and dumping the prices and thus allow people to make a lot of profit.

[pixie85]

Institutional money is great if it's going long. If this institutional money decides to short bitcoin we're gonna have a problem

Usually it's good because if a company invests it also makes a lot of noise in the media. They want others to hear about it and treat it like a bullish sign. There's at least 90% probability that when institutions enter they will pump prices.

I'd expect that bitcoin will become just a means of payment rather than investment. None of the institutional money will be invested considering the volatility by logic but if it's only uses bitcoin as a means of payment or transferring that'd be good instead of just price pump and dump.

It's not the volatility that scares them away but lack of regulation and a lot of hacks and disappearances. They need a backed and regulated exchange to invest. Maybe when something like BAKKT finally launches they will feel safe enough to enter with their money.

People from bakkt knew what was needed in the field: an exchange that has all the paperwork in order and a good cold storage.

[roosbit]

I think this is a double sided sword simply because institutional investors will first be more interested in protecting their money which means introduction of a centralized ecosystem despite bitcoin operating in a decentralized manner.

But overall the benefits could be more than we could lose out from their presence, I guess we need these guys.

[kaya11]

Institutional investors wants interests on their said investments, they want assurance that their money they invested would give them profit at a specified time, Bitcoin was not designed for this, it is volatile and no specific price, it is unpredictable and no one knows whats gonna happen if you invest on it. Institutional capital is big, they got money and power, it is a big help for Bitcoin in order to push it to another level. Currently some big names in institutional investments are researching crypto currencies, on how they could manage to extend their businesses along side crypto trading and the likes. If more and more money gets in the it could give motivation and the whales would play even harder,leaving Bitcoin to be in a bull state again.

[SquallLeonhart]

Institutional money is great if it's going long. If this institutional money decides to short bitcoin we're gonna have a problem

Usually it's good because if a company invests it also makes a lot of noise in the media. They want others to hear about it and treat it like a bullish sign. There's at least 90% probability that when institutions enter they will pump prices.

I'd expect that bitcoin will become just a means of payment rather than investment. None of the institutional money will be invested considering the volatility by logic but if it's only uses bitcoin as a means of payment or transferring that'd be good instead of just price pump and dump.

The issue with bitcoin adoption is that many people have just been announcing it based on investment tool but not as a payment tool. When people hear investment, they either interpret it as a ponzi scheme that would scam them, or see it as a short term investment they need to quickly make, and this is one of the reasons why money easily leave the market because people are not there to just save their money in and stay or just put money there to use it for utility purpose.

Utility tool is the actually the major reason why cryptocurrency was even made to manifest in the first place,which on no account should we ever forget this, what can give us adoption is payment feature of it, and how secured transactions through it are secured.

[TheUltraElite]

I agree, legalization is an obstacle for investors to invest their capital in crypto. actually this can support the rapid growth of bitcoin, but there are still many governments that consider it, but it is natural that if you will invest large amounts, we demand the security of funds

Legalization is the wall street markets led to them being more stable and less pump and dump from happening. Unfortunately this good thing cannot happen to crypto and people should be more careful about what they are investing in. Whether it is some new coin or an old project.

Again the project owners never differentiate investors on the basis of volume of investment. All they do is run a telegram channel where they come once a month to blabber about "developments" going on for more than two years and no progress, waiting for more funds and so on. Basically all these ICOs and then STO and now the IEOs are covered up scams. But you cannot complain because there is no grievance forum. Just your money gone with the wind. Who is institutional there is least bothering them.

[sana54210]

Depends on which institution it comes from. I mean we have seen some crypto companies get funding from angel investors so they can get bigger and better, that is a good institutional money for example, I would love to see huge companies invest or directly buy out these crypto companies to make them bigger and better.

However, if we are talking about huge corporations getting bitcoin and manipulating it however they want then unfortunately that is not really good for us since they can shape it the way they want. That is why you have to pick each individual investment and look if it is helping the crypto economy get bigger or smaller, if it helps it get bigger like angel investments than it is good but if its corporations manipulating the price then it is really bad.

[Michael71]

Institutional capital is very good for Bitcoin, because it improves its credibility.

Many wealthy people are also more likely to invest if institutional capital is involved.

[Polo7]

The instutional money is cheap money wich is produced by rate cuts.

The money is never been so cheap then now.
But even If the money is cheap... The bitcoin price Can move Only When Capital is invested into bitcoin through exchangers.



What we see right now that  the money is cheap and big Institutions investing big billions of dollars
Euros and other Fiat currencies!


Offcourse many of you think that If so much Capital is invested into Cryptocurrency market Why the Price of btc is Still Low???

The Reason, is the OTC.
RICH People who Got access to cheap money created from thin air are buying Up whole Cryptocurrency secretly without moving market prices!! 

To make retail investors to sell their Cryptocurrency their have placed laws and regulations to make You sell your Cryptocurrency to them with cheap price.

Once the instutions have accumulated all Cryptocurrency  the bull run will start.
And regulations will be soft again

[Polo7]

OTC works like this.
Step one...
You sell your Cryptocurrency as retail investor or Cryptocurrency holder with cheap price.

Step two.
OTC sellers will transfer Cryptocurrency out of exchangers to private wallets.

Step 3

Private wallet holder will sell it to the large OTC customers.


Step 4
Bankers will make even bigger rate cuts,  cheap money is now for Everybody.


Governments will ban OTC  and offshore crypto Trading...

Only allowed to buy and trade crypto in your own country exchangers like coinbase.


Last Step.


Then the party will Begin  investors have cheap money Everybody will start investing into Bitcoin again.


This will make crypto to the Moon.
The OTC big investors will sell their Cryptocurrency to the retail average joe!!