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The moment Invesco put 5% of its $1.4 trillion in assets under management into bitcoin everyone was doing the same, which would have triggered a surge in demand that (along with the limited supply of bitcoin) sent a price Bitcoin to very high levels.
Since Wall Street includes large institutional investors such as this company, and Bitcoin is a source of money-making, it is obvious that there is a need relationship between the two parties. But is this the case, or is each of them dispensing with the other?
Given a lot of nuances there are two possibilities: Either Wall Street will be in trouble if he doesn't buy bitcoin or bitcoin will be in trouble if Wall Street doesn't buy it.
There is also a third possibility that is likely to be true, which is that Wall Street does not need Bitcoin, and Bitcoin does not need Wall Street.
All of these possibilities are detailed to reveal the truth about the relationship between the pioneer of investments and speculation in the world and the major cryptocurrencies.
Since Wall Street was born sometime in the nineteenth century until now it is making a lot of countless money, and it had no problem in making this money before the emergence of Bitcoin, and certainly does not have any problem now with the existence of Bitcoin.
This Wall Street behemoth is not only making money by appreciating the assets it holds on behalf of investors; Rather, he makes profits from selling financial products on behalf of investors and for them for a fee, so he does not need bitcoin, because no matter how late he is, he will always find a financial engineering way to make a profit.
The real value of Bitcoin is that it is a currency that is independent of governments and this idea holds that it is also independent of institutions like Wall Street.
This currency was not created for institutions; To get around it, Bitcoin is cash that does not need third-party intermediaries; And no broker is more lucrative than the sell-side investment bankers on Wall Street and trading desks.
Wall Street bankers and traders do not direct daily financial transactions (from you to your local coffee shop, for example) for a fee; In fact, they direct (regulate or advise) the day-to-day financial transactions between investors and large corporations and the like for a fee, and as far as Bitcoin is concerned, they do not need any third-party intermediary.
There is an inherent ideal of bitcoin in mind that the existence of bitcoin, will render all financial institutions obsolete; The prevailing notion is that the peer-to-peer decentralized offshore money, bitcoin, will make all banks, asset managers, brokerage houses, central banks, money managers and corporate lenders disappear, but this idea may be incorrect.
Yes, this currency will change the world purposefully by giving the unbanked, or the underbanked, full access to basic financial products, but surely there will always be money changers, because as much as we love independence, many of us appreciate the convenience The mind that comes with the presence of a third party, which must be trusted because there is no legal and societal recourse if that third party misbehaves.
First, Wall Street does not need bitcoin, because it will continue to make money without it; Consulting and trading fees will continue to be a source of steady profits without Wall Street companies dealing in Bitcoin; As long as non-Bitcoin financial products exist (and will exist as long as we have civilization and wars), there will be institutions that collect, issue, buy and sell these financial products.
Second, Bitcoin does not need Wall Street, because it will continue to exist without third parties, will continue to be an outlet for people living in the midst of war or rising inflation, and will remain available as an effective means of storing wealth for those who do not have a bank account or who live in countries where the rise is accelerating. inflation.
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And while Wall Street and Bitcoin don't need each other, they won't actually hurt each other; Indeed, the full adoption of Bitcoin by Wall Street means more money for Wall Street by increasing profits; This adoption will also likely mean more money for bitcoin holders by way of a higher bitcoin price.
* Source : website
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