submitted by /u/SweetPie123
In recent years we've seen institutional adoption of Crypto increase severly, to the point currently that Grayscale is buying on behalf of its customers so much BTC it could lead to shortages. Investors and hedge funds are currently looking for a hedge against the dollar as macro instability and unprecedented monetary stimulus is taking place. According to the financial consultancy group DeVere group, the bullish activity of BTC during the crisis has led to believe that BTC could replace save haven assets like gold in the future. In terms of price action this could lead to a significant increase in the price of BTC and other crypto assets, but do we want institutional investment from a fundamental point of view?
Why was BTC created?
Satoshi Nakamoto created BTC to counter the fractional reserve banking system which creates money out of thin air, resulting in a weakened currency over time (inflation). Bitcoin and Blockchain are created in such a way that everyone can be their own bank, away from the government and third parties, due to the decentralized P2P network. Satoshi saw that during the financial crisis of 2008 banks could not be trusted, and acted on that.
12 years forward we see these financial institutions getting involved in BTC, buying up large sums of BTC and offering financial instruments to their clients like derivates or shares like Grayscale. This creates a third party as transactions now run through these institutions. This goes against the fundamentals of BTC of 'cutting out the middle man'. Furthermore, it creates large entities or 'whales' of institutions who can manipulate the price in their favor by buying or selling large portions of BTC. They have easy access through cheap funds, because for example the Fed Funds Rate has been extremely low for quite some time.
12 years ago the battle against big financial corporations and their unethical way of doing business has started, and it seems like they're up for round 2.