Bitcoin was created in 2009 by Satoshi Nakatomo in response to the financial crisis of 2008 to provide an alternative to our ailing financial system, which is repeatedly affected by the wrong decisions of individuals. It was intended to move away from a centralized and vulnerable approach and to create a decentralized financial structure.
One has to admit that Bitcoin has already come a long way, but the promised money from the big institutions has so far failed to materialize. But in 2020, this is set to change radically. This will also be a big chance for the best bitcoin casinos to grow.
Bitcoin – 2020 the year of institutional investors?
Although many well-known personalities from Crypto-Space have already predicted that institutional investors will enter the market in 2019, there has not been much sign of this so far. Peter Johnson, a principal of the crypto-friendly venture capital firm Jump Capital, has stated in an article that the year 2020 will be firmly in the sign of Bitcoin and other digital assets for institutions.
He stated that global macro investors, focusing on long-term narrative shifts around the world, will begin to invest capital in Bitcoin due to changes in the macroeconomic and geopolitical environment.
Bitcoin as an Alternative Investment
More specifically, Johnson Ray Dalio quoted the Co-CEO of the world’s largest hedge fund, who has written in recent months that the “system is broken”. Dalio believes that “healthy money” will literally be “thrown out of the window” as the prosperity gaps widen and institutions spend a lot of money to achieve certain goals. This creates the conditions for alternative investments to maintain or even increase value.
- The hedge fund manager sees gold clearly ahead in these times, although other analysts see Bitcoin as another hedge to the traditional markets.
- Johnson added in the article that he expects traditional asset managers to take positions in crypto-currencies as well.
- He believes there would be a general consensus among investors that Bitcoin and other crypto-currencies have a place in a diversified portfolio. CZ, the CEO of Binance, also joins the general discourse and also sees 2020 as the year of institutional players.
Fidelity and Bakkt as pioneers
2019 should already be the year of institutional investors. With the launch of Fidelity and Bakkt, the infrastructure should be created for the big players. But the great demand did not materialise for the time being. Nevertheless, Bakkt, for example, has recorded enormous growth over the past few months. These were mainly Bitcoin Futures contracts, which have little or no impact on the actual Bitcoin price.
Both companies have a license to hold and trade Bitcoin and various financial products related to Bitcoin. However, as long as institutional investors do not purchase genuine Bitcoin, there is unlikely to be any impact on the Bitcoin price. Nevertheless, there is no question that BTC has become indispensable in the financial sector. Although many investors are still waiting on the sidelines, confidence in the digital currency is growing day by day. In addition, the fundamentals of BTC speak for themselves.
Moreover, we certainly cannot expect any major price jumps. Institutional investors don’t just buy at the push of a button on a stock exchange. These are professionals who have good contacts and will certainly try to find a good entry without moving the share price with their investment. Therefore, we can rather assume that the share price will slowly move up in the long term, under the increasing demand from the institutional side.
We cannot look into the future either, but all signs are green at Bitcoin. The New Year will remain exciting and we will keep you up to date with the most important news as always. Stay tuned.