Is There Room for The Retail Investor in The Future of Cryptocurrency?
For most of its existence, cryptocurrency has been largely the domain of the so-called retail investor. That means that the main group that has backed the digital coins as they have soared in value over the past few years have been people investing on their own in the hopes of improving their financial future. In many cases, some of those people have also adopted the coins in their own day-to-day existence, so it’s kind of similar to those who invest in a stock because they use the products of the company that issues it. Retail investors, who so often have to take a backseat to the so-called institutional investors like banks or large firms when it comes to valuable properties, have been the first ones at the cryptocurrency party.
There is some concern that is about to change. Seeing the promise of cryptocurrency as an investment and noting the strength of the blockchain technology that drives it, institutional investors have begun to make some progress towards incorporating cryptocurrency in their own operations. At first glance, that might seem to tip the balance toward institutional investors yet again. If you feel like you’d to get involved in crypto investing, you can do so with an artificially intelligent robot like Bitcoin Trader which provides free access to the financial markets and to achieve success in online trading. Taking a look at how cryptocurrency is going to play out in the coming months and years, it seems like retail investors might be overreacting in terms of worrying about their spot in the crypto picture.
- More Options
Cryptocurrency, at the moment, is somewhat limited in how you can approach it as an investor. You can buy it or sell it, but, up until very recently, you couldn’t do much more. But that is starting to change. Already there are cryptocurrency futures markets in existence, which allow people to speculate on crypto without buying into it. And there is also the possibility of crypto funds, which means that retail investors can buy into a large basket of crypto coins for a relatively small price.
- Higher Value
The price of cryptocurrencies has stabilized after it dipped in the wake of a backlash. But it also hasn’t neared the heights of its peak performance. One way the price can get past that plateau is if institutional money comes into the picture. That will be a huge boost for the prices, perhaps eventually pushing it past even its highest former level.
- Crypto Evolution
At some point, cryptocurrencies have to let in the institutional investors for the prospects of the coins to reach their full potential. But the decentralized nature of most cryptocurrencies means that there will be no favoritism in terms of which investors get the most benefits from it. That means that retail investors don’t have to worry about any kind of grand scheme to oust them from the picture.
It seems like there is a way for cryptocurrency to favor both types of investors. In the long run, everyone will profit.
Jim Bevin is a passionate writer, guest blogger, and a social media enthusiast. The primary focus is writing high-quality articles after in-depth research and make sure it is a readers delight. Information is key and he abides by the rule of writing articles that will appeal to a broader audience.