Whatever you think about cryptocurrency it is becoming more and more popular and influential. Although it is a victim of a small crisis, its price has risen by $ 68,000 since November 2017.
Crypto in November
According to the AP, cryptocurrency has become such a hot topic that its total value is $ 2.6 trillion, which means that it is an (indirect) competitor to Apple, the most expensive company in the world. With 200 million users, it is simply too large for a financial institution to ignore.
Firms associated with the richest people are investing more and more property in crypto. Hedge funds participate in exchanges, while recognized banks offer a variety of crypto-based services. Paypal allows users to buy crypto on their app, while Twitter has introduced a system through which creativity can be rewarded with Bitcoin.
Finally, with an old brokerage account from ProShares, it is possible to buy exchanged capital (without learning what a hot or cold wallet is)
Its all part of a movement driven by large businesses with the potential to generate profit. Crypto-currency is the next medium that offers them the opportunity to do so.
Bitcoin technology allows Wall Street to make money in a way that has never been possible before. The winners of these deals are mostly stock managers and custodians. Investors profits depend on various factors.
Proponents of cryptocurrency argue that these platforms have very significant advantages for any investor. Specifically, one of the most notable factors is the lack of direct dependence on economic performance.
Crypto periodically encounters significant setbacks and falls into crises however this does not seem to be sufficient to ensure that it cannot change the cultural or corporate environment.
Banks and Wall Street
U.S. Bancorp said this month that it is helping significant investors secure cryptocurrencies. Which means they are likely to expect support from the rest of the Coins as well. In addition, several banks have stated their willingness to implement similar plans in the United States.
Before it can be established in crypto banks, it needs to be rooted in the everyday world. For example, you can usually go to a store and buy a product with one of the coins. Although there are several companies with such offers, it is still far from universal.
The AP adds that according to a Citi Private Bank survey, 25% of the offices that manage the accounts of wealthy people have started investing in crypto; An additional 25% is in the research phase.
The increasing acceptance of crypto on Wall Street has sparked the interest of certain individuals in selling coins. Crypto trading platform, Coinbase is worth $ 64 billion, so it is not surprising that such steps. To compare it to the same level as Colgate, Palmolive, FedEx & Ford.
However, it is important to note that Wall Street focuses more on the technology itself on which these services are based, rather than on any platform or coin. This is not surprising given the decentralized operation. Transforming the aforementioned technologies into more regulated and pre-banning ones is not a difficult step. It will not be surprising if government agencies sink different coins (naturally if they are interested in doing so). As during the Gamestop fiasco, the sea appeared to be the difference between an average investor and a high-level one. That is why financial manipulation is always one of the variables in these processes.
As for technology in general, JPMorgan Chase, for example, already uses blockchain technology to improve capital transfers between global banks. So the future looks really intriguing.