Coinbase is set to offer large institutional investors a way to invest large sums of money into Bitcoin and cryptocurrency (currently Coinbase offers Bitcoin, Ethereum, and Litecoin) while mitigating the risk for said large institutional investors.
Why is this interesting to the average person who either is investing in cryptocurrency like Bitcoin, or those who are thinking about taking the plunge?
When large sums of this type of money enters the arena, the supply and demand is affected. Bitcoin becomes scarcer and the value tends to go up. With the confidence boost that this type of investment adds to the entire crypto space, more people’s ears perk up and start thinking about investing.
Many DO decide to open an account and start buying Bitcoin and other cryptocurrencies (alt coins).
The whole thing cycles up.
Yes this is how bubbles form, but it is also how long term value rises as well.
As the first institutional investment customer (hopefully) has a good experience with this Coinbase program, even more of this type of money might flow into the market.
Now, smart investors might be thinking that now is the time to jump into the fray since values WILL be going up and if they go too high then you’ve totally missed the boat.
Fast forward to visions of watching Noah’s Ark sailing away as you’re left flopping around wondering why you weren’t on that tub.
Pretty scary, huh?
Friends, it’s time to sh*t or get off the pot!
These large investors needed something like this to ease fears of what happens when cryptocurrency “bits” go bye bye in the pockets of hackers and the like, as they did with Mt. Gox.
It’s no secret that rogue regimes like North Korea hack bitcoin to increase their ill gotten gains, so all of this is a real concern to these investors.
Clients need assurances, so the saying goes.
Coinbase has stepped up and offered these needed assurances. The program is called “Coinbase Custody”.
Once the stigma is gone and the FUD chorus of nervous central bankers like Jamie Dimon and the like are drowned out, value rises exponentially, and the predictions of people like Branson and other pro Bitcoin millionaires and billionaires like Thiel, Draper, Novogratz, and Mcafee may come to pass.
There are some pretty heavy hitters who are not keeping their belief in Bitcoin a secret, and it’s not just because they are invested. People like this don’t invest in something without true belief in real potential. They don’t engage in casino games like the middle and lower classes do.
Sorry, but that is something that many regular people out there in Internet Land fail to realize, and instead seize upon lame conspiracy theories and “hate the rich” memes.
This is HUGE news, folks.
Ignore it at your own peril.
Those without a working cryptocurrency account will be the peasants of the new economy.
Don’t be a peasant.