Risks from large financial institutions entering the crypto market .

[Shikha99]

Perhaps you will be surprised by the title of this topic, as we have always assumed that the participation of large institutions in the crypto market will have positive effects because:
+ Crypto is advertised and became popular with the community;
+ Value of crypto accepted;
+ The increase in buying pressure causes token prices to be pushed up.

However, everything is not just pink. I realize that besides such advantages, the participation of financial institutions creates a number of risks as follows:
+Financial institutions are likely to use crypto in the art of accounting like Tesla did with BTC. Crypto will become a tool to manipulate financial reporting metrics rather than an investment;
+Financial institutions have bought a lot of crypto and they will sell a lot of crypto: this happens when financial institutions want to take profits or offset losses. This sell-off will create a huge drop as ICO projects sold out huge amounts of BTC & ETH in 2018 after successful funding. Financial institutions are not the place to burn tokens ^^

What do you think about this? Will the participation of financial institutions have a positive or negative impact on the crypto market in long term?

[Yogee]

...What do you think about this? Will the participation of financial institutions have a positive or negative impact on the crypto market in long term?

Positive when we're talking about crypto going mainstream and increase mass adoption.
Negative when we're talking about privacy since regulators will tighten up anti-money laundering policies on all exchanges and custodial services.

I don't know anyone other than a newbie who would expect price to go up forever. FUD, corrections or pullbacks are part of the crypto ecosystem.

[shinratensei_]

The supply can be centralized into some entities and these entities can use it as a way to threaten the market. Elon proved that if it was working. We need lots of entities to buy crypto to make the ownership became divided into so many entities and this will be decreasing the possibility for the manipulation to happen.
We still need major players to enter into the crypto market to increase the trust and value

[Yogee]

The supply can be centralized into some entities and these entities can use it as a way to threaten the market. Elon proved that if it was working. We need lots of entities to buy crypto to make the ownership became divided into so many entities and this will be decreasing the possibility for the manipulation to happen.

It's true that a few companies are gulping up BTC but I don't know what you mean by "threaten the market". They can create FUD and all that like what Elon did before backtracking but those panic selling have always been absorbed by the market.

We still need major players to enter into the crypto market to increase the trust and value

This will require the mentioned entities to sell their stash.

[speedforce]

They will plan better than us. Big money always win the war.
Im sure they entry to crypto with a great plan to take big benefit from it.
If not a profit, then kind of tax laundery or something like that which can hurt our space in the future.

[Kabul]

There are ways to minimize the risks such as reading news and analyze trading volume. Just like in stocks, there are institutions investors holding a big number of stocks, derivatives, futures. Manipulations happen anywhere, whether it is cryptocurrency or other kinds of investment. Be a wise investor and you might know how to prevent big loss.

[ryzaadit]

Even bad publicity is still can give us a nice spotlight.

The dump is not always like manipulation it self, but sometimes the bubble just already explode and we're going to 4 years cycle again is always like that. In the end every 4 years we reached another level ATH + another level bottom price.

[Coroline]

Of course there are positive and negative impacts, if it is said that in the long run it has a positive impact, as long as this company does not play the market so drastically as what Elon did with its tesla.

[el kaka22]

I do believe that the biggest problem is the one we are living right now. What is it? Well if you have 18 million bitcoins, most of it gone already, have like let's say 8 million bitcoins left that are traded, let's be honest it is much less than that daily, but let's assume there are 8 million bitcoins "available" to be traded, and some guy swoops in and buys 1 million bitcoins and now the market has 7 million bitcoins available. That will increase the price right?

Well, sure it will however that will also mean that if someone sells a big amount there is less available in the market to be bought, and that sell will be a bigger portion, selling 10k bitcoin in 8 million bitcoins vs selling 10k bitcoin in 7 million bitcoins is not the same, consider only 1 million left, that will make it more obvious. So, even though these huge companies make it easier, they are also making it harder later on.

[bamb]

Big financial institution participating in Cryptocurrency is a good thing.  I think it gives many more people opportunities to participate in Cryptocurrency investing and help the market to be robust and stable. The flip side to this is when huge funds has to be taking out for one reason or the others, it will definitely affect Cryptocurrency prices in the short term,  but you can bet there will be recovery soon!

[electronicash]

it must work both ways. youd be grateful the large i stitutions are coming because cryptocurrency will be widely accepted. you  can now say to the people who says Bitcoin is a scam that Paypal is now a platform for which a user can buy BTC.

but at the same time, big swings in the market price will occasionally happen because these institutions are accumulating by manipulating the market.

[jrrsparkles]

Perhaps you will be surprised by the title of this topic, as we have always assumed that the participation of large institutions in the crypto market will have positive effects because:
+ Crypto is advertised and became popular with the community;
+ Value of crypto accepted;
+ The increase in buying pressure causes token prices to be pushed up.

However, everything is not just pink. I realize that besides such advantages, the participation of financial institutions creates a number of risks as follows:
+Financial institutions are likely to use crypto in the art of accounting like Tesla did with BTC. Crypto will become a tool to manipulate financial reporting metrics rather than an investment;
+Financial institutions have bought a lot of crypto and they will sell a lot of crypto: this happens when financial institutions want to take profits or offset losses. This sell-off will create a huge drop as ICO projects sold out huge amounts of BTC & ETH in 2018 after successful funding. Financial institutions are not the place to burn tokens ^^

What do you think about this? Will the participation of financial institutions have a positive or negative impact on the crypto market in long term?

Entrance of financial institutions are not great news for the cryptocurrency but it can help us with adoption of cryptocurrencies, so at the end we will have more people who are using will be increased so the final result will be mass cryptocurrency users. Know the risk before getting into the cryptocurrency, and don't forget that this is not a quick rich scheme.

[Teknisi88]

Perhaps you will be surprised by the title of this topic, as we have always assumed that the participation of large institutions in the crypto market will have positive effects because:
+ Crypto is advertised and became popular with the community;
+ Value of crypto accepted;
+ The increase in buying pressure causes token prices to be pushed up.

However, everything is not just pink. I realize that besides such advantages, the participation of financial institutions creates a number of risks as follows:
+Financial institutions are likely to use crypto in the art of accounting like Tesla did with BTC. Crypto will become a tool to manipulate financial reporting metrics rather than an investment;
+Financial institutions have bought a lot of crypto and they will sell a lot of crypto: this happens when financial institutions want to take profits or offset losses. This sell-off will create a huge drop as ICO projects sold out huge amounts of BTC & ETH in 2018 after successful funding. Financial institutions are not the place to burn tokens ^^

What do you think about this? Will the participation of financial institutions have a positive or negative impact on the crypto market in long term?

Investors are asked to understand the risks of cryptocurrency before investing, then they must also be careful when investing in cryptocurrency, which has recently become an alternative investment and financial transaction in the world. This is also a warning to businesses in the cryptocurrency sector to better comply with legal provisions and manage investment risks, so as not to violate the law and harm consumers.

[TheUltraElite]

Positive when we're talking about crypto going mainstream and increase mass adoption.

Correct.

Negative when we're talking about privacy since regulators will tighten up anti-money laundering policies on all exchanges and custodial services.

Wrong, this is also a positive.

We tend to see regulation as something bad but do note that the reason of why bitcoin and crypto have a negative image in the public mind is because of the money laundering that happens with the lack of regulation. If they would be regulated, more governments would be willing to allow trading freely and removing the "grey area" concept that has been plaguing this sector.

Who needs to be put behind the bars are the ones who manipulate and take advantage of the pseudo-anonymity provided by crypto. Those are the criminals and they are always going to vote for non-regulation of crypto because it hurts their business. Try to understand this.

Retail investors who pay their taxes and abide by laws will be willing to do trading but currently facing apprehension regarding government stance - they would be more interested in crypto if it would become regulated.

[Stanlo]

If crypto is a bubble waiting to be burst then the price will keep going up and up until things go side ways but it's not, the fact that crypto projects remains highly volatile is why crypto will keep surviving, it's called balance in another word, price must go down it's a must, only crypto newcomers will have a dream up forever surging in their heads

[asriloni]

That totally depends on your perspective dude. Sometimes institutional adoption gave more exposure that is actually needed by crypto but again you should not worry about the liquidation problem by them because it's nature. They bought and they can sell it too.
In my opinion if this gives a very big impact to the crypto. You must see that how much bitcoin owned by some institutional investors and that was giving a very big impact to the ecosystem.
The only problem is that may make the token or coin became decentralized caused by it already bought by the institution.

[junkerr]

I think there are still a lot of bad views of people out there regarding crypto. it's all about market manipulation and money laundering. We can't say that won't happen in crypto because we know the weaknesses and risks of crypto.
but when a large state financial institution begins to understand and understand how crypto is a solution, I believe this will be good news to pump up adoption in the crypto market.

[mu_enrico]

I'd rather say "big money," not "large financial institutions." Pros and cons depend on whether they buy your bag or something that isn't inside your bag.
Lawful big money is okay, but unlawful big money* is a no in the long run.

*Unlawful big money comes from money laundering, scam, P&D shill, and other shit. It's not good if governments do harsh measures to the crypto market, and treat it like a criminal market.

[leea-1334]

it must work both ways. youd be grateful the large i stitutions are coming because cryptocurrency will be widely accepted. you  can now say to the people who says Bitcoin is a scam that Paypal is now a platform for which a user can buy BTC.

but at the same time, big swings in the market price will occasionally happen because these institutions are accumulating by manipulating the market.

Welcome to the crypto people who live and breathe on this forum. When big institutions and countries go into crypto or blockchain, everybody cheers,,, and then when they decide to change their mind or go another opposite decision, everybody tells them to get out of crypto and stay away;)

Take the good with the bad I agree.

[hatshepsut93]

+Financial institutions are likely to use crypto in the art of accounting like Tesla did with BTC. Crypto will become a tool to manipulate financial reporting metrics rather than an investment;

As long as it doesn't lead to any regulatory action against crypto as a whole, this is irrelevant to crypto.

+Financial institutions have bought a lot of crypto and they will sell a lot of crypto: this happens when financial institutions want to take profits or offset losses. This sell-off will create a huge drop as ICO projects sold out huge amounts of BTC & ETH in 2018 after successful funding. Financial institutions are not the place to burn tokens ^^

It's stil a net positive, because not everyone will dump, and crypto gains more reputation as a store of value.

By the way, you can't really say that institutions are buying "crypto", so far they only bought Bitcoin and nothing else.