Coinbase is pulling hedge fund and big investor money into the cryptocurrency world with a storage service (a big freking vault) that will ease institutional worries about security of their digital holdings.
Big money flows means that ALL of our Bitcoin will rise.
What Kind of Insitutional Investment will Move into Bitcoin and Coinbase?
Apparently upwards of $10 Billion (with a big “B”) dollars of institutional money is just waiting to squeeze into Bitcoin and make us all squeal with delight.
That’s what one of Coinbase’s cofounders blogged about as he announced this service that I like to call Coinbase’s Big Freking Vault.
They are going to offer these big clients:
- Strict financial controls (multiple signers, audit trails, limits, etc)
- Dedicated account representatives and phone support
- SLAs on funds transfers
- A regulated digital currency custodian
- Multi-user accounts with separate permissions
- Support for a wide range of digital assets and currencies
- Insurance (in some cases)
- And high levels of cyber and physical security
The minimum deposit for this level of service and guarantees will be $10 million with a $100,000. set up fee. That’s chump change for these clients.
This service will gradually be rolled out in 2018 and be called “Coinbase Custody”.
What Might This Mean for Bitcoin Value?
Well, any time large deep pocket investors send oodles (and oodles and more oodles) of cash into something, the value goes up. More of the asset is bought up, leaving less available, so there we have the supply and demand thing. More people buy, supply tightens, demand (and value) goes up.
There’s the confidence thing, too.
What Say the Bitcoin and Cryptocurrency FUD Makers?
Jamie Dimon… his ilk. What ARE they saying?
Well, if I were a central banker wed to fiat money, this would maybe worry me that this kind of money might be headed out of fiat into crypto.
There is a growing chorus of world bankers and political types who are getting more vocal about Bitcoin being a bubble and being overblown etc.
Right on the heels of this news, Bitcoin pierced $8000 before heading back below the ocho, but it WILL be back and fly higher and higher.
Update: Bitcoin indeed bounced back to over $9000.
Update: Bitcoin broke the $10,000 barrier.
Update: Bitcoin broke $11,000 only to drop to just over $9000 and then recover over $10,000.
Meanwhile, there is a growing sentiment amongst institutional investors that Bitcoin could act as a safe haven during a future economic crisis – a good place to store money as you would in the past do with, gold.
The positive affirming beliefs are starting to really weigh in favor of Bitcoin and virtual currencies. (cryptocurrencies)
This can only HELP its value rise as the perception amongst both the financial elite and the Joe on the street is a POSITIVE one.
What Would a Smart Person Do?
They’d get an account and start accumulating Bitcoin, that’s what they would do. I am, and you should too. Sign up through that link and stake your claim for $10 of free Bitcoin to start your journey to (hopefully) riches in the new economy. That’s the same company that is offering the secure storage for the big institutional investors. If you are in the US, your deposits are also insured by the FDIC, just like at your bank
If you get in a position where you have a lot that needs greater protection, go for a secure hardware device.
Even my grandpa, if he were still alive, would think that was a great deal.
Really though, There are some really smart and wealthy people, some millionaires and billionaires, who are saying that one Bitcoin will be worth anywhere from $500,00 to $1,000,00 in the not too distant future.
Mcafee knows what he’s talking about.
Novogratz is a billionaire and he’s no dummy either.
Are you going to take the chance of missing that boat? Even if you only got a fractional part of a Bitcoin, that fractional amount could grow into a substantial valued asset.
Think about the potential.
The trend is up.
The rich guys are accumulating.
Even if there is a substantial pullback, it will rise again and then some.
You can wait for a downturn so that you can buy more with less, but that’s always a game of chicken.
There are people who constantly trade in order to build their positions quicker. They time the market, buy low, sell as it rises, then get in agin after a dip, rinse and repeat. Of course you can get burned that way.
Another way to go about it is to buy and just… HODL (hold)
The “HODL” thing is an inside joke in the bitcoin world. It just means “hold”.
Just know your limits and accumulate wherever you can.
Remember, slow and steady wins the race.