Blockchain for Entrepreneurs or Institutional Investors Keep Coming.
Will Institutional Investors eventually invest into crypto-currencies — not only in blockchain projects? It’s an interesting question. Yes, we all have read the same books, which say that “ fundamentals always wins” and “big money avoid big risks” but the history (financial one too) does rhyme — not repeats itself.
Firstly, in the past 20 years or so we’ve seen an unprecedented surge of speculative derivatives and their decoupling from the market fundamentals. As a result we have been enslaved by our own statistical models and trading systems. We are not pursuing the value anymore — we are all now just chasing the trend.
Secondly, the post cold war monetary system, which supposed to be open, global and led by USD is now taken apart by politicians, to which frighted and propagandized population had been given an excessive power. Key financial regulators FED and ECB have succumbed to the political pressure and do not follow economic (or any other) theories . They can’t induce credit expansion / contraction cycle no more. They now have to serve their political clans only. They have to print money to please populace and to green corporate accounts.
Thirdly, we are entering into a new digital Gilded Age, when people suddenly discover that computers’ induce reality is sucking in more and more of their time and money. That will shift value paradigm once gain, as it happened in 1920–1930th with the rise of radio, television, “cinematography” and media conglomerates.
Institutional investors are, of course, conservative but they are not dump. They know what’s happening. They will follow the trend. They have enough cheep money and expensive consultants to do that.
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