15.6 C
October 2, 2022
Image default

Big investors are still afraid to buy BTC, suggests Draper Dragon analyst

While many large investors have already bought their Bitcoin (BTC) packets in 2020, according to Robert Li, Draper Dragon analyst at Draper Venture Network, there are many aspects that still prevent institutions from making such large-scale investments.

Institutions still afraid to invest in BTC?

I think there are a few issues that still hold back most institutional investors from freely allocating capital in Bitcoin Li said at a cryptocurrency conference in Latin America on Tuesday.

What are the issues?

Number one is the reputation issue that stems from Bitcoin’s previous association with organized crime, terrorists, and online drug dealers. In recent years, I think many people have dismissed Bitcoin as a scam very quickly He explained.

In 2020, however, Bitcoin became part of the mainstream. For example, PayPal recently added Bitcoin and other cryptocurrency assets to its platform, and Microstrategy has started investing in digital currencies.

There also seems to be an obstacle to the regulations, although they are region-specific and some nations are already leading in this market – said Li, who is also of the opinion that, for example, there are regulations in the US “Unripe” for BTC.

– US cryptocurrency exchanges are not regulated in the same way as national stock exchanges such as the NYSE or NASDAQ. As you can imagine, they do not have the same investor protection standards – added.

Fear of manipulations?

Li also mentioned that big players are concerned about market manipulation in the BTC market. Such reasons were also given by SEC officials when they did not allow individual entities to create ETFs based on BTC.

Despite the above skepticism, even the aforementioned Microstrategy recently expressed its interest in buying even more BTC. Despite the fact that the company already has a significant market share.

Will 2021 be marked by a new cryptocurrency bubble, driven by large institutions? This is real, but in fact there are still many doubts on the market that make it difficult for such investors to buy BTC.

Related posts

Saga: CDBC will not repair current financial systems Blocksats

Aparnna Hajirnis

Bitcoin Technical Analysis + BCH, LTC, ETH and XRP – Blocksats

Aparnna Hajirnis

Secret smart contracts can protect privacy in public blockchains |

Aparnna Hajirnis

Leave a Comment