Why Institutional Investors Went to Crypto
January 23 2019 - 1:21PM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
January 23, 2019 -- ADVFN Crypto NewsWire -- If you spoke to a
group of powerful investors about why they invested in crypto, what
do you think they would say? CoinDesk publicized information today
on the 100 interviews that a venture capital firm called Arca Funds
had, to attempt to figure this question out.
The greater part of their
conclusions are actually quite striking for the average crypto
investor. First, Arca found that the majority of the institutional
investors that they interviewed want to continue to be in crypto,
even with the bear market continuing for over a year.
Perhaps more importantly, Arca
found that at the same time, the majority of these investors are
lacking in experience with cryptocurrencies. While this is not
exactly surprising, given that the industry has really only been
around since shortly after 2013, what is surprising is the
variations in investor experience that Arca found.
According to them, this group was
split along three lines with some having basically no knowledge of
cryptocurrencies, some measuring the performance of crypto funds in
a similar way to how they would measure traditional funds, and
others that have considerable experience in crypto.
Upon digging a bit deeper into
Arca’s findings, two similarities come to light that resound across
the group. First, all of the investors who were interviewed
apparently believe that if you are for crypto, then you are largely
betting against the traditional financial system. Second, they all
apparently believed in crypto as both a new kind of asset and a new
kind of financial infrastructure.
With this in mind, even though it
is not explicitly said, it would be reasonable to conclude that
this particular group of investors largely believes in Satoshi’s
vision, minus the idea that Bitcoin and cryptocurrencies will
eventually completely unseat the traditional financial
system.
By: BGN Editorial Staff
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