Institutional Investors barred Crypto Market to retail investors: Inequality on Opportunities

By CryptoJD | About trading crypto | 24 May 2020

Hi, I'm CryptoJD, I'm new to this platform and I consider myself "Newbee" in Crypto Market. I started learning crypto March 2018 after the Bull Run. I wrote stuffs related to it after I heard from a friend that "Bitcoin topped nearly $20,000 each" and I was shocked. English is not my native language so I've had difficulties in constructing one, hope you understand. But, I'd always try my best to create informative writings. To those who are new to my publish0x blog, kindly help me by "Following" to stay updated with all my new posts daily.
I am also open to honest and constructive criticism.

To begin

History always favor those people who have financial capabilities (businesses, enterprises, banks, financial institutions and etc.) in handling economic situations; thus, pertaining to great opportunities. That being said, it is always the "Big Players Bet".

Financial Institution poised promising profits out of every deals and economic activities. In recent event, Covid-19 creates more activity related to digital fintech which obviously funded by these financial companies especially banks. Moreover, with the increasing number of fintech developments and related transactions, many financial institutions will took chances to be part of the revolution and be ahead of the competition. One of the tools they might create promising developments is the rise of the age of cryptocurrency and its undelying technological process called "blockchain". On top of that, JPMorgan Chase- Major United States Bank- had been providing services to Crypto Exchanges (Coinbase and Gemini), businesses and related financial groups as customers to take ahead of the game. These lots are termed in crypto market as "Institutional Investors". Aside from being part in stepping door of crypto market and exchanges, they are now in development to made the same. As last year JPMorgan Chase plans to create its own cryptocurrency. Its a proof that they took it very seriously. "Institutions may be the main source of cryptos especially Bitcoin avid difficulties on mining in the near future" according to some experts.

On the other hand, Ethereum has been upgrading its ecosystem into ETH 2.0, adding more layers on blockchain and Dapps related to gaming, finances, and etc., for more features and accessibility. A kind of development to attract outside market or retail investors. bc8b5359c5effab341170545af37369e141a7182ee761573c594d52de39f16b0.jpegNew addresses created in blockchain drastically increased since before halving. The former indicates that with growing numbers of addresses being created daily with <1btc, is an indication that priced out are flooding into cryptocurrency market. Priced-outs' role could help grow market activities and transaction resulting to active markets and smooth transition from fiat to crypto; given that some transactions are cashless as pandemic has not yet ended. However, many banks are putting red flags on market as it is very risky to invest in cryptocurrency; which is ironic seeing that most of them are stacking and loading lots of crypto especially bitcoin- most known crytocurrency.

Consequently, gold may not proved to be as the next store of value.

Bitcoin is the most generic and pegged as the number one cryptocurrency as per volume and market capitalization approximately hundred-billion+ still growing. Based on its bitcoin whitepaper published on 2008 by Satoshi Nakamoto, it emphasized the importance of double spending on online payments. As most of the online payments involved third parties (see bitcoin whitepaper). The consensus which will help maintain the network and created long chain of blocks where transactions are stored until new blocks are mined and verified by nodes who have high computing powers. Each nodes will received copies of the transaction worldwide and formed a long ledger. Every nodes will confirmed the transaction in the network. In case, someone changes the previous transaction, everyone in the network will be notified of the inconsistency of the transaction. Thus, the previous will still be considered valid unless more than 50% DDos attack happened in the network which is impossible for now according to some experts. However, if quantum computer will proved to solved the problems of bitcoin miners in just seconds, possibly; but that is another side of the story. Blocks are connected until new blocks are mined through solving mathematical algorithm. The most innovative underlying technology behind bitcoin is called blockchain.

Could cryptocurrency market survived without "whale" institutional investors?

Potential risk in the decentralization of the market when these large institution play in the market, as they will imposed so much policies to connect with the State. And as much as we admit, it already had. With US SEC filtered any proposed institutional markets and ETFs, because the former didn't trust on price. Same way as how retail Bitcoiners will soon regret the flooding of institutional investors in the market at rapid phase. In addition, during September 2019 after Bakkt was approved, days followed price plummetted near $6,000 from $10,000, evidenced by its manipulation to attract price on local institutional market. Last 2017 bull-run market was made up not by these institutional investors but rather by retails. And what did these whales do to the market? They always sell. Sell. Sell. The next bull run will still be the same- priced out will look for the market and its potential profitability. After halving, banks are buying as they always have right now and sell after retail investors established long rallies. So as to the question if market can survived without them? Probably "Yes".

What would we do retailers?

This is only the suggestion men, HODL coz many people think it like this way.
"Hey, this BITCOIN is revolutionary and I want my grandchildren have piece of it".

Please, leave your comments below!

References: Bitcoin Whitepaper
According to Grayscale Director: Institutional Investors are flooding into Crypto at Rapid Rate

How do you rate this article?



All of these are learning phases of crypto adoption evidenced by the state's support and other enterprises' trust in cryptocurrencies and their underlying processes and technology that will make-up the decentralized world.

About trading crypto
About trading crypto

One of the most important rules why trading activity lies on psychology is the idea that “what some have must put to others” as an example of supply and demand levels. Entries are based solely on information given such as how many sellers and how many buyers. In every transaction there must play buyer and seller perspective – that is where price comes out. If the buyer win, the spot price increased however if sellers win the spot price decreases. If the price increases, sellers are weak and vice versa.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.