It has become increasingly difficult for Wall Street to dismiss Bitcoin and the cryptocurrency markets, given the $95 bln market cap of Bitcoin, rapidly rising user bases of cryptocurrencies, and the increasing mainstream adoption of Bitcoin as a robust store of value.
Up until a few months ago, the vast majority of Wall Street analysts, bankers, and investors dismissed Bitcoin, describing it as a bubble, in an identical way the technology sector continued to condemn Amazon since its launch in 1997.
But, as the user base and market cap of Bitcoin and the rest of the cryptocurrency market soared, it has become challenging for Wall Street to blindly ignore the market, being fully aware that their failure to adopt Bitcoin and cryptocurrencies may result in the isolation of banks and financial institutions in the long-term from the promising cryptocurrency market.
Embracing BitcoinMany billionaire investors and major financial institutions such as Mike Novogratz, Kyle Bass, and Goldman Sachs have decided to embrace Bitcoin and the cryptocurrency market, rather than compete against it. Notably, earlier this month, the market cap of Bitcoin surpassed that of Goldman Sachs, nearing towards the $100 bln mark.
Ami Ben David, co-founder of venture capital fund Spice, told FT in an interview:
“A year ago they didn’t know about it, six months ago they thought it was a scam and now they realise they simply just don’t understand it and are starting to get nervous and want to learn about it. There is definitely an element of FOMO. People have been told by their advisers, ‘Don’t touch it! It’s a bubble!’, and now they are upset they might have already missed it.”
Acknowledging the rapid increase in demand for Bitcoin, Paul Vigna of The Wall Street Journal reported that Goldman Sachs has been preparing to launch a cryptocurrency trading platform to address the interest towards Bitcoin from its clients and consumers in the traditional finance sector.
“Goldman’s effort involves both its currency-trading division and the bank’s strategic investment group, the people said. That suggests the firm believes Bitcoin’s future is more as a payment method rather than a store of value, like gold,” wrote Vigna.
Entrance of institutional investorsLast week, billionaire hedge fund legend Mike Novogratz revealed his newly established fund that will focus on Bitcoin and the cryptocurrency market in the next few years. He further emphasized in an interview with CNBC that along with major investment firms such as Fidelity, a few large institutional investors are preparing to engage in the Bitcoin and cryptocurrency markets.
“I can hear the herd coming. I was just in San Francisco, met with a few big institutional investors and they’re still a ways away, but they’re coming. Lots of funds are being raised and so I’m pretty confident to say that it [Bitcoin price] is going higher,” said Novogratz.
View Original Article At Coin Telegraph