Investors Who Might Not Venture Into Cryptocurrency Ecosystem Are Keeping Their Foot ForwardOctober 5, 2019
There was a rise in institutional interest in cryptocurrencies during early 2019; however, recently, the institutional investment seems to be waning. There was a lot of hype around the launch of Bakkt; yet, in reality, when it was launched, the scenario did not do too much around the hype.
The major criticism around cryptocurrencies is that it was invented just ten years ago without a fundamental underlying value. The prices are volatile, and it is derived from the amount that the next buyer is willing to pay.
However, considering the slowing down of the global economy and negative yields from the government bonds in Europe and Japan, several investors who might not even previously take a look into what the cryptocurrency is, might venture into the cryptocurrency ecosystem.
Several institutional investors are looking to invest in fear of missing out. Major Wall Street firms are not yet trading the cryptocurrency; however, the price gains of Bitcoin are better than the tech stocks.
The counter-argument to Bitcoin in terms of its store of value is that regular stocks and bonds are sensitive to the decisions of central banks and governments, but the cryptocurrency is independent of the sovereign authorities.
Over the past 24 hours, BTC worth $70.4 million has been moved. Despite the happenings in the cryptocurrency market space, whales have been surfacing and making their moves.
People are not involved with cryptocurrencies for reasons related to a lack of regulation. The price of the Bitcoin is wavering, and it has been historically seen that anytime the Bitcoin price slows down, the Altcoins will ascend.
A lot is going around Libra at the current moment, and none are willing to admit. It is essential to read between the lines to get a clear indication of what is happening with Libra and the regulators. Companies who are part of the Libra associations have already spent a lot in regulation concerning their own business. This is for both domestic and international regulation.
Bankers from across the world are very adamant about sticking to fiat currency. Venezuela and North Korea are the only nations showing interest in cryptocurrencies. Governments are already expressing concerns and reservations towards Libra, and the situation is only getting complicated every day. Governments are not happy about cryptocurrency from private companies.
The global entities are not going to stay calm about the Libra; they are going to be doing their share before Libra can hit the market. However, the Facebook founder is optimistic about Libra.