When we reach the moment where institutions are buying Bitcoin, then Bitcoin will be marked as an actual asset that won’t be forgotten. They build for it and they buy it.
Some institutions have researched and understood the potential of blockchain. They know what is essential to succeed. Here’s the good part – they don’t just buy Bitcoin, they build services for it. Some very big names like ICE that can’t be ignored.
NYSE (New York Stock Exchange) – one of the biggest exchanges in the world, owned by ICE, has built its own exchange that specializes in Bitcoin, called Bakkt. Being one of the biggest and building for this industry is quite the task as all eyes are looking at them.
Venturing into this industry is still considered risky and if you want to get involved it is best to do your own research.
Fidelity Investments Inc. (Fidelity) – Founded as Fidelity Management & Research in 1946 by Edward C. Johnson for markets outside of the US. It is one of the largest asset management companies in the world managing a staggering amount of assets valued at 6.7$ trillion. They see demand for this new type of assets.
Microsoft is building an identification system on top of the Bitcoin blockchain. They are going into the open-source route, unlike Facebook. We are bound to see more big names venturing and building on top of open-source blockchains.
Germany is also proving itself to the world as a leader in the field of cryptocurrencies based on a law passed by the German Bundestag, which allows financial institutions to buy, sell and hold cryptocurrencies for their customers.
Berlin was previously the crypto capital of the world and now this position is being strengthened. This draft law is intended to create more infrastructure for Bitcoin in Europe throughout 2020. Once a steampunk toy, it has now become an asset that no one can ignore.
Perhaps some will take the better way – to develop borderless censorship-resistant blockchains.
Bakkt reaches new highs with its trading volume on a daily basis, proving that there is a high demand from wealthy individuals and institutions. It started off slowly, however, almost every day it grows exponentially.
The Seoul Metropolitan Government plans to invest 1.2 trillion Won ($1.07 billion) in fintech start-ups by 2022, some of which are heavily involved in Blockchain and Crypto.
In China we see some banks investing in blockchain technology and indirectly in Bitcoin. With China Merchant Bank investing in a Bitcoin wallet company – BitPie, one of the most used bitcoin wallets by Chinese investors.
Finastra, one of the largest fintech companies in the world, is investing in RippleNet to provide financial institutions with access to Ripple’s global payment network.
Even governments are showing interest in this unique technology. Some are negative, while others are very positive and progressive. The technology behind it is very powerful and we see many people starting to notice and use it.
If you think that the people who run these institutions do not understand what they are dealing with, you are wrong. They are not stupid, they are very smart people who are very careful what they talk about.
The younger generation understands it better, but overall it is still a very small niche compared to the other traditional assets.
We are still at the beginning and they know it and some will take this chance. And as we have seen with the internet, the press machine, etc… some inventions are certainly going to be successful.
Hodl and Buidl
Nevertheless, there is a risk and we do not know if we are right, we do not know for sure if Bitcoin and the altcoins will pass the test of time.
As of today, everything points cryptocurrencies being on the right track, with fundamentals stronger than ever. We need to continue to build and educate ourselves, because only then can take on building a better future, which comes with a better monetary system!