Why everyone thinks institutions will buy Bitcoins from exchanges?

[gantez]

I just want to say that the reason that big buyers would buy from exchange is obvious. Large buyers are encouraged to buy from exchange to avoid being defrauded.

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[javadsalehi]

I don't think so. Because it does not work.
Let's assume they are buying bitcoin from the whales. Then whales can easily pump the remaining coins even if the number of them is very low. For example they can rise 1 satoshi go 1 dollar.
And what about the other coins and the coins that will generated in future? They can be also pumped.

[Dod Ong]

I think most of big influencers in the crypto world, pushing regular people into thinking there will be a massive investments from big institutions over world.
I use to think with my own brain.
So, therefore, i see very big troubles ahead for normal people that think, watch, quote those influencers.

I just don't see how major institutions will rush to coinbase and make accounts and expecting to buy from there.
I give you 3 sources where they can buy, none of them involve exchanges and therefore, prices will be unaffected in first sentence.
1) They will buy in a hidden way from whales large amounts of bitcoins with a package cost.
2) They buy from confiscated coins from authorities that have from financial seizure
3) From companies that work through off-shore , especially from gov's hidden companies where the stolen bitcoins will go as a money laundering
 So, i am expecting price to go way more down in next 2 years. And guess what can happen when those institutions will sell their assets!
Yes, some small institutions might get their bitcoins in transparent way from exchanges.
So, the question is: how much you guys trust this technology?
Would you use it at 50$ / bitcoin? Would you used after you bought at 20k and hold it, if bitcoin would worth 50$? To my vision, i can use this technology at any price. But for major adoption we need a coin that not have a fluctuation more then 1% / year not per hour.
What's your vision about future? How much trust you are willing to give for blockchain technology?

I think if the bitcoin is supported by our government, I think some of our millenials especially students are using bitcoin because the millenials are more on gadgets so I think they can enter in the crypto world. So if the demand of bitcoin become high I think the government make their move to become the transactions become faster.

[bartolo]

@cellard
Yeep is exactly what i mean, they buy from external sources, and price will be unaffected, then they dump into exchanges coins and prices will drop like stone.
Ofc this will happen behind closed doors and far away from regular people view.
We can see these effects even today after MtGox stolen bitcoins. Who knows how many offshore companies own millions of bitcoins.
I give one simple example. Look at Winklevoss twin brothers, they bought their bitcoins from auctions, so bitcoin price was unaffected when they pumped those money at that time period. And examples can go on forever.

What's the problem for them if the price goes up after buying? If they want to buy a large amount, they can open accounts in several exchanges and see how their investment is revalued instantly. The OTC deals can be interesting for them if they can get a price quite below the market price, if not, I think the exchanges are a better option for them.

[dothebeats]

This is not a hidden or secret thing in the cryptomarket. Aside from not getting any potential discounts or lower-than-market price, it also gives them a good leverage since the price won't move even after eating up a huge volume of the coins. Same when big mining companies offload their coins: they do the trades not in rexchanges but P2P. There's just too many benefits in doing P2P for buyers and sellers, especially in moving large amounts. No one wants to inflate the market by buying hundreds of millions worth of coins only to be dumped at by bears.

[p3ppymon]

The OTC transactions do exist exactly for that purpose. If you were to exchange 1k or 10k bitcoins all in one go, the price will sudden spike in the opposite direction (even if positions will be soon filled up by bots). Nevertheless, you might need some sort of exchange to cash out eventually. No idea how much would be exchanging to fiat in the “blackmarket” or alternative routes.

[xTz]

@cellard
Yeep is exactly what i mean, they buy from external sources, and price will be unaffected, then they dump into exchanges coins and prices will drop like stone.
Ofc this will happen behind closed doors and far away from regular people view.
We can see these effects even today after MtGox stolen bitcoins. Who knows how many offshore companies own millions of bitcoins.
I give one simple example. Look at Winklevoss twin brothers, they bought their bitcoins from auctions, so bitcoin price was unaffected when they pumped those money at that time period. And examples can go on forever.

What's the problem for them if the price goes up after buying? If they want to buy a large amount, they can open accounts in several exchanges and see how their investment is revalued instantly. The OTC deals can be interesting for them if they can get a price quite below the market price, if not, I think the exchanges are a better option for them.

Really? You do not see the problem?
When influencers buy bitcoins from 3rd party sources, then they influence you to buy the market so they can dump their coins at high prices? What i want to say, be aware in who you trust, judge with your own mind, then decide what you do with your money. Otherwise you can get burn't in this market.
Do whatever you want, i don't care about your money. Me, i expect to go much lower bitcoin, i am prepared to use bitcoin at price of $500/btc. Question is: are you prepared to see that price?

[Dudeperfect]

We call big whales big not because they have a high amount of capital but they think in a broader aspect. It is true that they won't buy Bitcoins in a single shot but they will buy it through a systematic investment plan which focuses on buying a smaller number of units at the higher frequency of time. It is true that they might not buy from the exchanges directly but they will diversify their destinations when it comes to the acquisition of Bitcoins.

[Khacdoan194]

Well written, I also think that to use btc as a tool, organizations can take over and place the price wherever they want, because the market is too small to handle it.

[RoyalWood01]

I don't really agree with you. The big institution getting involved with Bitcoin always brings a spark to the market. Blockchain technology is completely a decentralized system and no one can control this.

[ClintonJ]

Mainly a large number of coins buy by the institutions based on this people of investor only invest a little portions of money in the market mainly they do this because of this they do various types of project which is related with this coin and market based on this they buy 95% of coins.

[bungutko]

I don't think big institutions will make a move in buying more btc this time since the market has not stabilize yet. I believe that in due time where it has already stabilized and the fluctuation will no longer drop high just like the current situation then the big institutions will start buying more btc.

[Komobit]

I don't think big institutions will make a move in buying more btc this time since the market has not stabilize yet. I believe that in due time where it has already stabilized and the fluctuation will no longer drop high just like the current situation then the big institutions will start buying more btc.

Agreed. It is even easier to the big ones to just make theyr own cripto and release it to the market.

[annasadia]

I really do believe this project. But some people are just manipulating the market overall. Few years ago, there was not so much problem with this market. When people got known that a huge amount of money can be earned from this market, they started pupm and dump. But ultimately, all are suffering. So I think, we all general traders move for fair way foreard to have a better market.

[jhache]

Most of the institutional and big investors never buy from the exchanges, they mostly buy it through OTC. As buying from exchanges will cause the price to skyrocket and it will be costly for them to purchase this way. But by buying through OTC they buy at a fixed price and get the amount of coins they want in a single go.

[makatia]

You see that buying on the trading floor is far more secure than buying black markets and whales,

[Kakmakr]

The institutional capital will definitely enter the Bitcoin market, but I predict that it would be in a more regulated environment. You just had to look at the manner in which Bitcoin Futures were introduced, to see where Bitcoin ETFs would be going with this. Governments will not allow institutional investors to invest large amounts of money into a speculative market, without proper regulation to protect the consumers.

This is probably why they are looking at exchanges like Gemini that are more compliant with the current financial sector.

[2weent6]

You see that buying on the trading floor is far more secure than buying black markets and whales,

They will buy for sure because the market is very cheap and if you invest right now your profit will be much higher. Don't miss this opportunity, in any market the bear market is the best to invest time to enter the market.

[xTz]

You see that buying on the trading floor is far more secure than buying black markets and whales,

They will buy for sure because the market is very cheap and if you invest right now your profit will be much higher. Don't miss this opportunity, in any market the bear market is the best to invest time to enter the market.

What makes you think is cheap? Maybe under 1k is cheap.
With that thinking when bitcoin drop'd from 20k to 13k same said all, now bitcoin is cheap ..... buy.... then you know the result. With other words... you cannot know where is the bottom, bitcoin dip from 30 dollars to 2 dollars that over 90% drop.
I can almost say with certain that institutions will not buy from exchanges, so price will be unaffected. There are plenty ways to avoid purchasing from exchanges. They will buy external and sell internal , so price can literally go much more lower, for those who use it as a payment only are not a problem, for traders can be a pain.
Remember: Bitcoin is a peer to peer cash system, not a peer to store of value, nor a peer to speculation or peer to trade.
Only then you gonna see the real value of bitcoin, when you start to use it as a payment.
Cheers, hope i do not offended too many traders

[RobertChaney]

I see normal people are getting influences by many negative comments and I am afraid that could cause serious troubles but they should use their own brain to decide that institution can buy their bitcoin very easily and if those institution sell their assets the prices can get down