Bitcoin Halving: Why Institutional Investors May Not Care
While the entire crypto community is going crazy over the third Bitcoin halving coming soon, institutional investors are not so eager to jump on board. Over the past two years, every crypto media outlet in the world has written several articles regarding the importance of institutional investment is a key factor to the next evolutionary phase of the crypto industry. However, here we are nearly three years since the 2017 bull run and we have yet ot reach anything close to those all-time highs. So here are a few reasons why institutions investors are not buying the halving hype.
Bitcoin Halving: It’s still too hard to buy cryptocurrency
For the crypto enthusiast out there, buying cryptocurrency is just another daily task like grocery shopping or laundry. For the uninitiated though, it’s daunting. Complex verification procedures like KYC immediately scare people away from the majority of top platforms and then there is the additional task of finding a secure wallet, the long wallet addresses, the decisions of which crypto to buy, and the general fear of asset security. It’s a lot to figure out for most people and for that reason, institutional investors are not willing to go all-in on Bitcoin just yet. For crypto to really take off, it must be easy enough for our grandparents to figure out.
Crypto industry is still too small
If you check crypto Twitter, it may seem like the whole world is talking about Bitcoin halving but if zoom out of that small circle, you’ll realize it’s quite a tiny niche. Compared to other markets like gold, fiat money, and stock markets, cryptocurrency’s $273 billion seems relatively minor to the stock markets $67.5 trillion.
The past few years have shown crypto is growing in a positive direction, it is just not enough to get for institutional investors to feel threatened or feel like they are missing out on something. Visa, Wells Fargo, Charles Schwab and others like it are still at the top of the food chain and it will take some time for institutional investors to change their habits.
Crypto regulation is still a challenge
Compared to a few years, ago crypto has come a long way with regulation. It’s currently establishing itself as a legitimate asset. That being said, it may not be enough for institutional money just yet.
Various organizations and politicians have all come forward stating major regulations need to be in place first before cryptocurrency can even begin to compete with fiat currency. These regulations are currently being investigated and implemented. It just may take some time.
The point of this article is not to scare you away from cryptocurrency or say Bitcoin halving is a meaningless event. Cryptocurrency is a very real and innovative addition to the financial market. Furthermore, it doesn’t necessarily need institutional money to succeed. From day one, cryptocurrency as a currency for the people and by the people. It’s still a good investment but for those looking to be a millionaire overnight, look elsewhere. Cryptocurrency will have its time as a viable currency solution to fiat but look for a gradual slope to that point and not a quick one.
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