I guess I need to back up with my second post on this topic and spend just a minute on why this interest me. Quick disclaimer, this post will only take a minute or two to read, but, won’t give you any great insight, except as to what is going on in my head.
I am looking at this from the institutional investor side. Years ago, I made a conclusion about really rich people, they got that way for a reason, and they weren’t going to give it up, just because they got old, or didn’t understand something new (or even because they missed out on something, made bad choices or just got caught in the wrong.) Just look at Gamestop, if you don’t believe me. r/wallstreetbets might have got a quick win on the hedge funds, but it was just that … one quick win. Before you know it, exchanges, banks, wall street, and congress were all “looking into” what happened and making sure it didn’t happen again. Why? Because rich people control a lot, and I mean a lot, of what happens. Don’t get me wrong, I am not all against this… to a point. It is why I trust the market to always go up, because those rich guys are going to keep getting richer by making sure it does.
So, rich people aren’t going to lose money in the long run, and while this isn’t a zero sum game, they are not happy about people that aren’t them making money over them, without them or in spite of them.
And here we are, hedge funds, billionaires (and I include Elon Musk with the rest of them,) government, ect. aren’t into taking unnecessary risk, or letting anything stay decentralized or independent of themselves. Even if a hedge fund only takes on .05 percent of their fund in crypto, you can bet that they are looking to stabilize and control their gains.
What is the point? You tell me. Can this be the first time the little guys stay ahead of the elites? If that is the case, then will they simply become the elites? OK, that is enough of my rant on old rich guys, and in all honesty, I hope to join them.