Is the Glass Half Full or Empty for Bitcoin and Institutional Investments: More Harm Than Help?
Throughout the bear market, experts and analysts have stated that the influx of institutional investors is what the industry is waiting on to get the influx necessary. If the information from Wall Street lately has been any indication of what’s to come, then this year will easily influence the cryptocurrency market as a whole. However, according to a report from CCN, the new investments could post a threat to Bitcoin as well.
There is both a good side and a bad side to this change. On one hand, it is clear that more investments will most likely boost prices for cryptocurrency in the short-term, even if just by the fact that they are now associated with it. However, the new investments coming in to the market are still the “enemy” that cryptocurrency was originally created to eliminate. If an investor involved in the cryptocurrency industry is looking forward to traditional finance sneaking in, maybe they should consider how loyal they really are.
A concept called the Overton window is meant to describe multiple ideas that can be discussed in a public setting. Topics that are not appropriate for this type of situation aren’t so much banned or censored, but they are mostly just buried by other conversation. This concept cannot have been found to be truer than on the subreddit for Bitcoin, considering that there are many changes that these users are willing to make to ensure that the Overton window remains open to what they prefer.
Negative comments can easily be deleted from the subreddit, considering how aggressively some coin holders aim to protect where their investments lie. However, the notable difference between now and before the arrival of institutions is fairly substantial, in terms of censorship on the Bitcoin subreddit.
Blockstream is a perfect example of a new group entering the market that is already full of institutional investors. The group is made for developments in the Bitcoin network, and they have the support of AXA Venture Partners, an investment wing of AXA Group. Blockstream has been a pivotal part of the development of Bitcoin for years, but the Overton window could have easily hidden it from others.
Without going too deeply into the conspiracy around Bilderberg, the way that Bitcoin’s subreddit can be censored so easily is similar to the way that the traditional finance sector reacts to crypto as a whole. Still, the creation of cryptocurrency was meant to be used as a way for the public to become self-sufficient and independent of these restrictions. By bringing in institutional investors and creating products that specifically entice them, the industry walks away from their anchor in the economy.
If the only application of cryptocurrency in the institutional sector is the use of creating a more diverse pension fund, not much will chance. The demand and exposure will increase the prices, and the adoption will be a smooth and profitable endeavor. However, it is highly unlikely that traditional finance investors will come in without any changes to the way things work, which is only proven by the ways that JP Morgan and Facebook have begun work on their own cryptocurrencies and their own rules.