“Bitcoin is ‘fraud’ and ‘rat poison squared’,” they said, “banned all crypto trading, warning everyone that this was just plain speculation destined for zero.” And today every bank is working on the development of crypto solutions to front-run our bags. These are the same people who talked down the concept of digital currencies, who called them trash, who are now scrambling to get their piece of the action.
They hated the Bitcoin idea, which was peer-to-peer money and was set to compete with and replace them and their fraudulent FIAT system. Then it was hijacked, and now it is this kind of token with endless speculation surrounding it, they are more than happy to offer you services to handle your money. This is the height of hypocrisy. They caused the problem that Bitcoin was meant to solve, and now they are making money off a solution they once vilified.
Now, we have the ultimate vindication: a system they built that's so broken, they need the very technology they tried to kill. Where's their shame? Their hypocrisy has no bounds, and around we go again, while the retail investors foot the bill for institutional greed. The banks will eventually own it all, just like they own everything else.
When the governments are talking about Bitcoin reserves and central banks start accumulating it, you know the game is truly over. Blackrock started with ETFs and now every major financial institution is rushing to secure their position before it's too. Before, it was just microstrategy that was known to be buying Bitcoin for whatever reason they have, and now it's become a mainstream institutional strategy that everyone wants to have a piece of.
JP Morgan chase that was known to be a major critic of Bitcoin is now offering Bitcoin service to its clients and has launched its own digital currency and a wallet for its customers. All of this to me, is like a dog returning to its vomit; they are consuming the thing they once rejected and condemned.
But, are these development a good thing for the industry?
On the surface, everyone would say yes, because institutional adoption makes Bitcoin more legitimate, and they bring more liquidity to the market. But, let's be real; these institutions are not out there to help anyone but themselves and their customers. They are not like the conservative Bitcoin holders who are ready to hold for decades, they are only in for the trend and profits making either short term or long term.
Since most of these people doesn't offer Bitcoin directly to their customers, but only give them exposure through derivative products and ETFs, the likelihood of selling their positions during market downturn is high, which could lead to major crash in the crypto market.
While we celebrate their entrance into the space, and the prospect of seeing Bitcoin price go up because of their massive buying power, we should also be careful for ourselves because their exit could be just as devastating as their entrance.
Do you think that cannot happened? The chances are very high considering that the underlying asset backing the products they offered is crypto. When the market do not favor them and they are finding it hard to meet their obligations to their customers they would likely liquidate their positions to cover losses. This is a likelihood probability with a high chance of occurrence.
For now, all we can do is to enjoy their capital inflow, hold our Bitcoin and stay vibrant, keep our eyes on the news, and take action when necessary to avoid being used as liquidity for those greedy institutional investors who are only in the game for short term profits and market dominance.
