Trading in Bitcoin and other Cryptocurrencies is the latest talk in the business market. Both the young and the old, big and small investors are all rushing out for a share of the booming industry. Apparently, despite the fact that the industry is not endorsed in some regions, traders are still finding a way of doing business. Investors have continued to pump more and more millions into the industry as they build onto their expected returns.
However, a report by Morgan Stanley indicates that there are more institutional investors compared to retail investors. The global banking giant’s research division outlines that the latter has remained stagnant. The report does not give the primary reason for the stagnation. Nonetheless, speculations are indicative that it is because of the definition of Bitcoin as digital cash.
The discoveries surrounding the Bitcoin ecosystem
Stanly’s report is titled, “Bitcoin Decrypted: A Brief Teach-In and Implications.” A section of it outlines the rapid evolvement of Bitcoin since it hit the market. The evolvement as brought along institutional money, which has been on high demand by the cryptocurrency community. The turn of events has resulted in investors building more confidence in the digital cash.
The report additionally talks about stablecoins, a type of cryptocurrency intended to help in stabilizing prices. It is worth noting that Bitcoin is quickly moving towards trading vs. the stable coin USD-Tether (USDT).
The authors of the report cited, “USDT took an increasing share of BTC trading volumes as cryptocurrency prices started falling. This occurred because many exchanges only trade crypto->crypto and not crypto->fiat.”
Issues clients had with investing in the cryptocurrency space
The highly spoken about cryptocurrency space is not without issues. Clients and investors are not just having a walk in the park. They have experienced challenges the major one being a lack of regulated custodian solutions. Hundreds of investors have lost their investment to online scammers due to the fact that most of the crypto exchanges are not registered.
Other issues include regulatory uncertainty and the fact that large financial institutions are yet to come into the cryptocurrency space.