Is institutional capital good or bad for Bitcoin?

[Kemarit]

The debate is still on-going if large investments from institutional firms, would be good or bad for Bitcoin in the long run. Some are saying it will bring more volatility <price manipulation> and others are just happy that the price will probably go to the Moon.

Institutional investors will be the BIG losers. They are only making early bitcoin investors rich.

Here you go again with you big theory here. As far as I know when CBoE and CME enters the markets, the price suddenly spike resulting to a all-time-high. But it wasn't that sustainable though, that's why they losses a big chunk of their investment specially coming 2018 with a long bear market. As far as making early investors rich, it's their advantage, they see Bitcoin's potential and it was realized in 2017, but we don't have to blame them though.

[RealMalatesta]

The debate is still on-going if large investments from institutional firms, would be good or bad for Bitcoin in the long run. Some are saying it will bring more volatility <price manipulation> and others are just happy that the price will probably go to the Moon.

There are also conspiracy theories doing the rounds that these institutions will use their financial powers to destroy Bitcoin. <Buying large quantities and also dumping large quantities>

Some are even saying that the small fish will be eaten by the big sharks. Let's consider the impact of this and how this will change the Bitcoin scene.

Will Bitcoin go 100% commodity & store of value or will it still be used as a currency?  

This is not new, they have been practicing this already, and the market is still doing fine.

The market is being driven by speculation, and no matter the number of time they strike, it will not completely damage the market, but I don’t think a genuine financial institution will purposely come with the mind of destroying the market, in fact if not for some of these large financial institution, the whales may have killed interest of investors complete on cryptocurrency.

Financial institution with large capitalization which we usually refer to as bulls has been the ones balancing the equation and has given chance to so many people to understand how to play along with whales that their sole purpose is to pump the market and dump it.

[BitHodler]

As far as making early investors rich, it's their advantage, they see Bitcoin's potential and it was realized in 2017, but we don't have to blame them though.

People thinking like that guy are dumb and short sighted. You have to follow what smart money is doing, and they are accumulating even at current levels preparing for the next leg up.

If you worry about making early investors rich then you can't invest in anything, because by that logic you're always too late, whether it's a stock, property, bar of gold, an artwork, a watch, and so forth.

And then we should ask that guy what his definition of rich is. The amount he thinks you need to be rich might be pocket change for others. People here never fail to surprise me with their stupidity.

[LUCKMCFLY]

I think that at this moment the institutional money, its inclusion will be totally good for the market, because it is most likely that they enter in favor of the price so that it rises, that is, the big investors will raise the bitcoin price accordingly so that the majority of people enter LONG and so they can start taking profits as they are selling bitcoins, is a very good tactic, especially because what is generated is a total bullish trend, which is what is in the current phase .

[7788bitcoin]

Institutional investors will be the BIG losers. They are only making early bitcoin investors rich.

If you are running those corporate institutions then the statement would be true , financial institutions deal with multi millions of dollars worth of investment and they have a dedicated team to monitor the market and take good decisions according to the market situation and these investments will aide the price of bitcoin as it will reach new levels but the issue is that they could manipulate the market as they are dealing in huge amounts, it is possible for them to determine when to sell off and crash the market and when to purchase and that is the biggest worry.

[hispout]

The debate is still on-going if large investments from institutional firms, would be good or bad for Bitcoin in the long run. Some are saying it will bring more volatility <price manipulation> and others are just happy that the price will probably go to the Moon.

There are also conspiracy theories doing the rounds that these institutions will use their financial powers to destroy Bitcoin. <Buying large quantities and also dumping large quantities>

Some are even saying that the small fish will be eaten by the big sharks. Let's consider the impact of this and how this will change the Bitcoin scene.

Will Bitcoin go 100% commodity & store of value or will it still be used as a currency? 

I don’t really know this for sure, but there are lots of people that keeps saying they wish for institutions to start investing their money in Bitcoin because they believe that institution money is going to help the price of Bitcoin to go higher. But one thing you should also know is that all these people that are saying all these are just saying for their personal purpose. They all just want institutions to invest their money in cryptocurrency because they believe that it is going to make the price of cryptocurrency to increase and they will use that opportunity to make lots of money.

[fiulpro]

Till a value it is okay , but you should remember that these institutions generally are more towards gaining their own profits therefore at the end you can never trust them to think good for the community as a whole.

If they hold a huge sum then price may sure sky rocket but they will use it for their own profits which might be a little bad for the market , I think till an extent it is for sure okay , but when it comes to long term investments we cannot trust them for sure.

[el kaka22]

It is dangerous to assume the institutional capital will come into bitcoin without expecting anything.

I mean we do expect a return and profits as well but we have no power over the politics and basically the world of law whereas the whales of the world do have that and if corporations come into bitcoin then they will bring all their power with them which is a great thing for all of us but if something bad happens and bitcoin hurts them then they will try to use all of their power to make that money back from the crypto world by any means necessary so it would hurt us as well.

Institutional money is not something we can afford to go against and fight right now, we are already volatile and fragile as it is and if we do that then we would be always in danger at any moment.

[eaLiTy]

It is dangerous to assume the institutional capital will come into bitcoin without expecting anything.

We are yet to see institutional investment in the bitcoin market and once there is a clarity regarding the market from the regulators we might see huge investment from these institution and they will invest to reap the profits and they will have the power to manipulate the market because of their huge investment and it will be a boon for early investors as the price of bitcoin will go through the roof and the volatility will be high.

[barbara44]

The debate is still on-going if large investments from institutional firms, would be good or bad for Bitcoin in the long run. Some are saying it will bring more volatility <price manipulation> and others are just happy that the price will probably go to the Moon.

There are also conspiracy theories doing the rounds that these institutions will use their financial powers to destroy Bitcoin. <Buying large quantities and also dumping large quantities>

Some are even saying that the small fish will be eaten by the big sharks. Let's consider the impact of this and how this will change the Bitcoin scene.

Will Bitcoin go 100% commodity & store of value or will it still be used as a currency? 

I don’t really know this for sure, but there are lots of people that keeps saying they wish for institutions to start investing their money in Bitcoin because they believe that institution money is going to help the price of Bitcoin to go higher. But one thing you should also know is that all these people that are saying all these are just saying for their personal purpose. They all just want institutions to invest their money in cryptocurrency because they believe that it is going to make the price of cryptocurrency to increase and they will use that opportunity to make lots of money.

With all sincerity, that is why many investors you see now are in the market, to make money, and if we have to wait for adoption, many of us might not be getting the profit we are getting now without some of these institutional investors to put in their money in large sum which increases the price of bitcoin.

Do you know what the total market cap of bitcoin is, imagine that the few average investors we have keeps dropping whatever they have little by little, do you think that the market cap would have been upto that, it is when institutional capital enters that market that it encourages some people too to put in their fund in large quantity which will jointly push the value of bitcoin up for people like you and I to make profit. So, if you see people wishing for these institutional capitals, what else would it be other than to make money.

[redsun114]

When we talk of institutional capital, it does not necessary mean that they put in such fund for investment or wants it to increase, we have various institutions that will simply just use it to make payment, maybe they are moving large amount of money from one country to another, and they will have to buy lots of bitcoin.

This type of fund do not usually stay long in the market, because it goes through payment gateways, and those gateways are ready to convert it to fiat immediately it gets to them, but the thing it really helps is that it reduces the quantity of bitcoin left in the market, and we know that as the supply gets limited, demands become higher, and once demands becomes higher than the supply, the effect of this is that it will surge the value of bitcoin higher. So, that is why we really need institutional bitcoin users.

[deisik]

The debate is still on-going if large investments from institutional firms, would be good or bad for Bitcoin in the long run. Some are saying it will bring more volatility <price manipulation> and others are just happy that the price will probably go to the Moon.

There are also conspiracy theories doing the rounds that these institutions will use their financial powers to destroy Bitcoin. <Buying large quantities and also dumping large quantities>

Some are even saying that the small fish will be eaten by the big sharks. Let's consider the impact of this and how this will change the Bitcoin scene.

Will Bitcoin go 100% commodity & store of value or will it still be used as a currency?

I'm not sure if Bitcoin is used as a currency now

From my perspective, Bitcoin as well as other cryptocurrencies remains and will remain mostly a speculative asset. It is unlikely that we are going to see much interest from institutional investors any time soon. Really, what's in Bitcoin for them? It will be a free lunch and easy money for ordinary folks like you and me. But that has never been the case in the past and won't be in the future. In other words, "local" people tend to overestimate the importance of the whole crypto universe. It is small and insignificant (for big guns)

[Herros]

The Commodity Futures Trading Supervisory Board (BAPPEBTI) sets cryptocurrency as a commodity subject that can be traded on futures trading exchanges. Although the rules and procedures of trading are not completed, Bitcoin is projected to be the most possible reference to the crypto contract in the future.

As the world's most popular cryptocurrency, Bitcoin is now arguably a cryptocurrency with a foundation of capable technology and has the world's greatest community. These reasons make the investors think, Satoshi Nakamoto's currency is potentially a reference to the future of crypto-futures trading.

[deisik]

The debate is still on-going if large investments from institutional firms, would be good or bad for Bitcoin in the long run. Some are saying it will bring more volatility <price manipulation> and others are just happy that the price will probably go to the Moon.

There are also conspiracy theories doing the rounds that these institutions will use their financial powers to destroy Bitcoin. <Buying large quantities and also dumping large quantities>

Some are even saying that the small fish will be eaten by the big sharks. Let's consider the impact of this and how this will change the Bitcoin scene.

Will Bitcoin go 100% commodity & store of value or will it still be used as a currency?

I'm not sure if Bitcoin is used as a currency now

From my perspective, Bitcoin as well as other cryptocurrencies remains and will remain mostly a speculative asset. It is unlikely that we are going to see much interest from institutional investors any time soon. Really, what's in Bitcoin for them? It will be a free lunch and easy money for ordinary folks like you and me. But that has never been the case in the past and won't be in the future. In other words, "local" people tend to overestimate the importance of the whole crypto universe. It is small and insignificant (for big guns)

I think only a small number of countries use it as a currency, there was news that Japan started using bitcoin to pay company employees, from there there were institutions that believed in bitcoin, but I think it was only an alternative, because we know there are still many countries that reject it

That's not even so much about legal status of Bitcoin

As they say, you can take a horse to water but you can't make him drink. In the same manner, you can legalize Bitcoin completely but you won't be able to make people pay with it (unless you actually force them, e.g. via taxes). People are using cryptocurrencies for speculative purposes (and as a store of value, to a degree), but paying with Bitcoin for everyday things is like heating your home with banknotes (though it still remains an option)

[TheCoinGrabber]

2 years after this thread started and thankfully Bitcoin haven't yet completely collapsed. Thing is, we can't really easily stop institutions from buying bitcoins en masse, accessibility for all is on of the crypto's features.

We can get the government to legislate that companies only buy a certain maximum amount, etc., but do we really want to government to get even more involved?

[rose9696]

In my personal opinion, we should thank these organizations. without them, we would not see the price of Bitcoin rising to $ 19k8 in 2017. without them, I think the crypto market is now only a few businesses really active. without them, no young millionaires will appear.
They really control the price of BTC but they are still on the right track and do not intend to destroy bitcoin. They are trying to raise its price every day.

[lixer]

I'm not sure if Bitcoin is used as a currency now

From my perspective, Bitcoin as well as other cryptocurrencies remains and will remain mostly a speculative asset. It is unlikely that we are going to see much interest from institutional investors any time soon. Really, what's in Bitcoin for them? It will be a free lunch and easy money for ordinary folks like you and me. But that has never been the case in the past and won't be in the future. In other words, "local" people tend to overestimate the importance of the whole crypto universe. It is small and insignificant (for big guns)

Bitcoin is still more of a speculative assets this way because it has not yet been regulated, if bitcoin can get regulated, I think it will even be more beneficial to these institutional investors, and this institution will not only use it for investment purpose, but for digital payment purpose, which is the main goal of bitcoin, but I guess it will really takes lots of time for it to be regulated as the governments that is need to regulate it has not yet picked interest in it.

Anyway, their regulation is just to fast track the adoption rate and make it quickly become less speculative market, but without government regulation, as we gradually proceed in the usage of the technology by ourselves, a time will show up when bitcoin becomes a stable coin, and then it would be difficult to speculate it, once it becomes less speculative, institutions will tend to use it as means of evading task, and many more reason other than this.

[justdimin]

I think it is not just about institutional capital but just basically whales. It doesn't matter if one person holds one billion dollar worth of bitcoin or a whole company holds it, as long as there is one entity that has too much bitcoin that is bad. I do not want rich people to get as much bitcoin as they can and collect all bitcoins in the world just like they did with dollars.

I want this space to be free from greed and hoarding, I want people with dollars to not just come in and buy as many bitcoins as they want and corner the market. They end up making bitcoin dance for them and do whatever they want with futures shorting and longs and they end up with more money basically winning money from the poor idiots who go against them. This should be a rich free zone if you ask me.

[Upgrade00]

I think it is not just about institutional capital but just basically whales. It doesn't matter if one person holds one billion dollar worth of bitcoin or a whole company holds it, as long as there is one entity that has too much bitcoin that is bad. I do not want rich people to get as much bitcoin as they can and collect all bitcoins in the world just like they did with dollars.

But it's a commodity to be acquired and the more money you have the more money you can spare in exchange for bitcoins.
I believe is what they do with the assets they hold that matter. We do not know how much for certain, bit Satoshi would definitely have a very large stash of bitcoins, but it's unlikely he'd take any action that would hurt the currency in the long run.
The Bitcoin network needs more enthusiasts

[shoreno]

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   .