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The Good and Bad Side of Institutional Adoption of Bitcoin

Cryptocurrency analysts and enthusiasts alike, believe that the institutional adoption of Bitcoin and altcoins will help to boost their prices. However, institutions dipping their feet into the crypto space might come with its own problems. The financial elite may desire control which could impact on the decentralized and uncensored nature of the space, according to a media outlet’s report on March 16.

Institutional Adoption to Impact on the Market

Per the report, the cryptocurrency community is expectant that the entrance of institutions into space will help to boost the market prices of virtual assets. 2019 also looks like the year which it will happen due to the foundation that has been laid by platforms like Bakkt and Fidelity Investments.

However, if institutional investors only use these virtual assets to enrich their pension funds, everyone will be happy. The latter is as a result of the boom in the prices of cryptocurrencies caused by their high demand and exposure. As such, early adopters of Bitcoin and other virtual assets will stand to gain massively from the entrance of these new set of investors.

Institutions are Unlikely to Abandon Their Financial Beliefs

Nonetheless, the media has noted that this is unlikely to happen where institutions will gladly abandon their financial orders to adopt the rules and beliefs of “freakish band of coders and cypherpunks”. They may also tend to bend the idea of the decentralized and uncensored nature of the space which are some of its most outstanding features.

An instance of institutional control is the case where some user comments are deleted from the Subreddit /Bitcoin. In the past, this was not so since the subreddit was uncensored until institutional investors began using the platform.

From this behavior, it can be assumed that an overturn window may occur where only certain ideas are allowed to be discussed in public places. These topics in the community may not be outrightly banned or censored, but they may be buried in archives where they can only be found years from now.

Internet’s Dream of Being Decentralized is Unrealized

Another instance that was pointed out, is the case of the internet. Reportedly, Sir Tim Berners-Lee, the inventor of the World Wide Web stated that “Whoops! The web is not the web we wanted in every respect.” According to Berners-Lee, the notion he had in mind in the 1990s was an open, free, decentralized, and anonymous platform.

However, this is not the case today given that the internet is controlled censored, tracked, and spied upon which can be attributed to the efforts of the government and tech companies.

The latter can be likened toFacebook’s and JPMorgan’s plan to launch their own cryptocurrency. These assets will be based on their own rules and private protocols which may be significantly different from that of Bitcoin. Nevertheless, it may be what the market needs to separate their assets from Bitcoin.

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