Why Bitcoin needs institutional money coming in?

[Red-Apple]

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.

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[franky1]

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.

[btc_angela]

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.

[Mandoy]

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.

[audaciousbeing]

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...

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.

[dothebeats]

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.

[panganib999]

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...

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.

[Darooghe]

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.

[adzino]

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.

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.

[coin-investor]

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 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.

[n0ne]

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.

[enhu]

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.

[ashmodeus]

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.

[darkangel11]

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.

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.