Analysis: Could Institutional Adoption Bring The Financial Elite To Destroy Bitcoin?

2019 seems to be the year when institutions will start massively accepting bitcoin and other cryptocurrencies. But, is really institutional adoption going to do bitcoin any good or will it destroy the cryptocurrency? Let’s find out more in today’s bitcoin news.

Institutional adoption is a double-edged sword for all cryptocurrencies. The prices could increase rapidly in the short-term and just as easily deflate. Also, cryptocurrency used to fight against the strong, old roots of the financial elite.

Of course, institutional investments usually increase the price of Bitcoin which has a positive effect on the HODLERS since they will get rich fairly quickly. However, the people who just enter into the crypto world and want to buy Bitcoin to begin with, or even those who cannot buy bitcoin right now, will never be able to buy it because the price will likely reach sky-high value so many won’t be able to afford more than just a fraction of the currency. Also, it is very likely that hoarding bitcoin by the institutional investors or those who can afford it totally misses the point for bitcoin as a cryptocurrency and a store of value.

Furthermore, if most of the supply of BTC is purchased by institutional investors, this means that the cryptocurrency will become centralized which will eventually centralize the entire crypto space and the same wealthy people who now have the fortunes, will have it again but in crypto. The global financial system will be much endangered. If banks and other large financial corporations buy most of the Bitcoins, they will have almost entire control of the BTC market which can help them easily manipulate the price of the currency at any time.

It is also important to consider that if governments get their hands on in the game and purchase a large portion of the supply of bitcoins, they could also freeze the market and make it impossible to make withdrawals without paying high taxes. Bitcoin will eventually become a form of centralized money and will lose its entire point.

Of course, this is all a huge ‘’IF’’ analysis so the chances for something big like this to happen exist but are not overwhelming. However, it’s good to have into consideration that anything is possible.