Continuing on the path to 30 days of Daily Thoughts Heating up, the latest round is focused on Institutional Investments in the Crypto space and what it really means, or more importantly what is really going on?
Eyes Wide Shut
All you have to do is pay attention to any source at the moment and you will be more than peripherally engaged with news or other content focused on cryptocurrencies, be it Bitcoin or another. What is really happening?
Deep down, most intuitively know that something is afoot. If you can step back from the program for just a moment or two, you might catch a glimpse of a different timeline and what really may happening in front of our very eyes.
Of late the intel is littered with increasing engagement from institutions of all types. Just in recent weeks news that Tesla invested $1.5 billion into BTC which was on the heels of other high level organizations to the likes of BNY Melon bank, Grayscale, and even Deutche Bank is starting to having public notification of conversations on the topic.
Never in a time in history has the commoner be able to enter an asset class ahead of the aristocracy, so what is happening right now is like a front row seat to not necessarily the best show on earth, but entertaining for sure.
The Clear Picture
Let's just take the top 1000 on the coin lists combined with the hundreds, if not thousands of companies, corporations, banks and other institutional entities around the world, the expectations are high.
High in the sense that a major transformation is happening right before our eyes. Something to the likes that is quite difficult to imagine. Some have compared to strapping onto a rocket, while others say traveling at the speed of light.
Whatever the path the current situation is on and what our place is in it, the clear picture has yet to be resolved. One thing is for sure.
A resounding expectation for exponential activity is everywhere you turn.
My Big Question to Ask
As I participate as well as watch what is unfolding across the financial markets as well as the crypto markets, I keep asking myself a Big Question.
Who is to benefit the most from what is happening in regards to institutional involvement?
A semblance of that question can be asked in many different ways but the essence is the same. Who is to benefit...?
When you follow that string around the giant ball of yarn that represents all of the complexity of the situation it can be easily lost.
Yet here is my thought about what the answer could look like.
Around the Giant Ball of Yarn
I have spent an inordinate amount of time cogitating on this topic. Who is to benefit? And more importantly, how does the large body of institutions fit into this equation.
One could easily suspect that most institutions would enter the markets for the same reasons; to increase returns.
The more I delve deep and look to what the future timeline looks to be, I come to a different place and admittedly the clarity around this is just recently.
Let's think about it for a moment. Bitcoin (representing blockchain and other crypto projects and functionality) represents a transition from a less public facing, public facing system to a very Public Facing, public system.
Let that sink in for a moment...
Those who maintain control and direction of the current system are faced with a quandary of what to do next. Regulate and carry out oversight, or go even farther to include execution of the new system.
My bet is on all three.
All you have to do is look at the different actions which are public to ascertain what may be happening in private.
Google as a validator for Theta, A digital Yuan test in China, and many many other examples of current industry both technical and governmental being involved in integral steps of the digital currency transformation.
So What Does This Actually Mean
Many claim to have a crystal ball and a few actually do. Unfortunately, I am neither of those, but what I can do is make an informed opinion about what is about to unfold in 2021 and into 2022.
First is to those in the crypto space pre 2017 bull run; the ecosystem will change. It will change rapidly and in many ways will alter the way we do business from this point forward.
All things change and for those who embrace it, the future is bright.
Second is in regard to the institutional side that is entering this space. Prepare for an adjustment in business practices. This is not a matter of digitizing the non-digital processes as was much of 2000's to day.
Rather, an entirely updated process is unfolding. This will be like moving directly from a non-computer environment circa 1990 to the tech of today, all overnight in one fell swoop.
Buckle up, the ride is just beginning.
That's all for now, be blessed.