Is Help From Institutional Investors A Blessing Or A Curse?
The beauty of Bitcoin is simple – consumers have the option to be responsible as their own banks. They can make investments and use tools that were previously inaccessible to them. Unfortunately, whenever the idea of using fiat-based technology is suggested in this industry, investors start to get uncomfortable.
The whole point of the industry is freedom, which seems squandered if users just hand the reins over to fund managers and other financial entities that drove the financial system into the ground 10 years ago.
The only way to give investors financial freedom is with having a choice. New investors in the crypto industry are often overwhelmed with this newfound freedom, because they do not have the time to watch charts and hope for profit. Furthermore, they lack the necessary tools to really make the most of it. Some experts say that the best way to handle these deficiencies is with the help of someone who has the skills and tools that they lack, which is why many former Wall Street professionals are offering help.
It is hard to say exactly how this will change the cryptocurrency world as a whole, especially considering the need to remain decentralized. There are two companies that are trying to help users to have access to the same support as the elite 1% of investors. Those companies are Atlas Quantum and Caspian.
Both of these major companies qualify as “institutional investors,” which means they have plenty of experience in traditional investing. While they both use different algorithms to figure out the best way to get a profit, they operate independently and uniquely. Atlas Quantum primarily works with Central and South America, though they are working to get to Europe. While Atlas Quantum essentially takes over the investments for the user, Caspian equips the user with the tools they need to help make investments on their own.
The services offered by these investors are, most likely, a sign of things to come from the financial market to the crypto industry. However, the only real difference between these financial institutions coming in and the teams on each crypto platform is the amount of people with experience.
Co-founder of Caspian, David Willis, explained the following in an interview with Coinjournal:
“All [of the information gathered by the Caspian system] feeds into a portfolio and risk management systems. So, you can see real time Profit and Loss exposure, you can see performance attribution, you can run analytics and stress tests, etc. on the portfolio.”
The tools that are offered are years ahead of their time, which will help consumers to understand the easiest way to use their digital assets. However, the big problem is that the companies that want to perform trading for users can change the way that consumers view the industry.
If this change actually happens, the biggest concern is the risk of fraud, though that is a risk that consumers take when they invest with fiat funds too. Most people that become victims of scams and other fraudulent actions will never see their money again, though a lucky few find a small portion. Even the companies that helped these users invest end up with no profit, leading many experts to believe that letting a third-party have control of investments is a poor decision.
Just like any other job or business, there are some investors that need someone to manage their money, whether it is profit, loss, or just maintenance. There are always risks involved with investing in crypto, especially considering the dramatic rises and falls of Bitcoin.
However, once Bitcoin reaches a “ceiling” in their mining, it will be impossible for consumers to even reach a little more in profit. Professionals offer connections when investors need it the most, but guidance will be more helpful than completely taking over the crypto accounts.
Even with companies like Atlas Quantum and Caspian, there’s still regulators that stand in the way. The government regulators for crypto are pushing the entire country behind the rest of the world in cryptocurrency advancements and put roadblocks in the freedom to invest. To even be considered an “accredited investor” in this country, the user has to either make $200,000 in their salary yearly, or they have to have $1 million in assets, which does not include their residential properties. Basically, unless someone is considered upper class, they cannot become accredited.
The rest of the world makes cryptocurrency an opportunity for everyone. In fact, the people that it opens the biggest doors for are usually the ones that could not afford to invest before now. When there are so many economies that need financial support, these consumers are able to take control of the financial future of their family.
When the next wave of investment companies come around, Bitcoin’s reach will definitely change. Even if the current people involved in the platform remain consistent in their actions, newcomers will have regulations and other restrictions that could hurt their chance for profit. Experts in cryptocurrency do not even have faith in the everyday investor to hold onto their private key for their wallet. Educating consumers would easily be the best way to expand Bitcoin, but time will tell if these companies do more harm than good.