Financial Institutions Are Now Investing in Bitcoin

Dear Reader,

Many financial institutions like hedge funds and asset management companies have started investing in Bitcoin.

What does that mean for the cryptocurrencies asset class? Financial institutions investing in Bitcoin is, when weighed, unequivocally good for cryptocurrencies.

Financial institutions bring huge liquidity to Bitcoin which has been a problem for the cryptocurrencies asset class. The tidal wave of money brought in by hedge funds and asset managers further support the prices of Bitcoin and further inflate the medium sized bubble in Bitcoin that is now in formation. What is more, financial institutions bring a higher level of sophistication to cryptocurrencies which will provide for a better Bitcoin intrinsic value formation based on fundamentals. Hedge funds and asset managers can better evaluate the fundamentals of Bitcoin and price cryptocurrencies. 

In the short-term financial institutions investing in Bitcoin is not that good, because the Bitcoin bubble keeps inflating, but in the long-run hedge funds and asset managers' money will provide for a broader, more liquid Bitcoin market, better price discovery and ultimately a better cryptocurrency market.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich