Hedge Funds, Investment Banks, And Institutions: They’re All Buying Into Crypto — Are You?

Propelled by Bitcoin’s recent ATHs, the crypto industry could see a tipping point moment in 2021 launching cryptocurrency into the stratosphere. Investors building a crypto portfolio this year could be among the last-early cryptocurrency adopters as institutions worldwide are taking sizable Bitcoin positions and the Wall Street veterans, originally opposed to crypto, have begun allocating growing sums of capital to the speculative investment.

Blackscale added fuel to the fire with speculation circulating around their potential forays into Bitcoin futures following their SEC filings.

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Retailers have continued to successfully extract the IEO sector for hidden gems in today’s rapidly growing crypto space. SKEY, a comprehensive IoT solution SmartKey, saw 15x growth following their highly successful IEO to raise $1.5 million on Probit Exchange. LIMEX followed up with a successful IEO of their own and hit nearly 4x its IEO price following listing on secondary markets.

Prospects for 2021 look bright as the major driving forces behind the cryptocurrency movement in 2020 continue to flow in from an increasing number of avenues.

Institutional Money Is Flooding The Bitcoin Space

We could be at the precursor of a watershed moment where exponentially more capital is invested by institutional investors. It has become a commonplace belief that the recent growth of Bitcoin (BTC) can be attributed to the massive influx of money from investment banks and hedge funds. Rather than this trend dying down, BTC appears to be developing into a strong asset class over the next decade, given it can fuse the gaps with central asset custodians.

With trillions still parked in money markets following the coronavirus sell-off, there’s plenty of evidence suggesting a bullish run into 2021 for cryptocurrency. Coupled with the recent dramatic narrative and perception shift, price predictions are no longer reserved for industry-specific investors, with titans of capital markets calling bullish price targets.

Institutions are warming up to the idea of Bitcoin replacing gold as a hedge against inflation. If the US continues to expand inflation, unhinged, the decision to buy BTC for the purpose of a liquidity shelter, is almost a sensible decision. Allocating one percent of assets to Bitcoin, putting it under your pillow and forgetting about it, could pay substantial dividends in the years to come.

Wide-Spread Adoption And Application

Accessibility and complexity have long been touted as substantial hurdles the grassroots cypherpunk community would have to overcome to see their dream of widespread adoption come to fruition. Normal folks need to be able to interact with cryptocurrency through avenues they understand and have experience with.

In 2020 developments in platforms we all know like PayPal, Wealthsimple, and Square, have bolstered accessibility for retail investors by leaps and bounds, enabling their massive user-bases to begin securing their financial future.

When you interact with a traditional financial brokerage account, it can be very confusing and alienating for new investors. Developments centered on bridging the gap for those looking to make their first forays into crypto are occurring right now. Access point diversification and user-interface developments are and will inspire everyday users in droves to join the cryptocurrency wave.

ProBit Exchange makes the process of investing in cryptocurrency easy, with a highly customizable interface, extensive tutorials, and customer service that speaks YOUR language. 2021 could be the year where mass adoption begins, as banks slowly acclimate, eventually offering integrated services for their devout user base.

DeFi Markets Are Percolating

The saturation of Dapps exploded in 2020 like no other area of the crypto world. DeFi apps are racing to enable cryptocurrency traders exposure to derivatives trading within the DeFi realm.

Synethetix (SNX), with currently $1.4 billion locked, is among the most popular in this niche on ProBit Exchange, allowing anyone on-chain exposure to a vast range of assets founded on Ethereum. The synthetic asset trading platform recently launched its staking feature on Optimistic Ethereum L2, a decision that turned heads especially due to the fact that Ethereum 2’s future is a long-term project that may never reach fruition.

Another top performer on ProBit Exchange is Aave, enabling users to lend, borrow and earn interest on crypto assets, without a frustrating intermediary tax. Embracing a decentralized lending system, Aave users do not put their trust in a single institution or person but rely on the code executing as written.

The consensus among experts is continued growth and increased public awareness, especially if the DeFi niche can stomach the regulatory pressures that will inevitably surface as a byproduct of sowing the traditional and decentralized financial realms together. Early developments in merging these separate worlds will be met with tension but the potential payoff from compliance would be a defining development.

Ethereum’s Promising DeFi Driven Future

Ethereums recent infrastructure developments coupled with the DeFi surge have enabled both niches to grow alongside each other. Ethereum has gone through some dramatic changes with a shift to the proof-of-stake protocol, sharding upgrade, and other revisions, but not every change has been received with open arms.

Nonetheless, Ethereum had over one trillion in transactional value in 2020 and with growing support across myriad niches and new projects surfacing daily, Ethereum is ripe to grow. In fact, Ethereum is vastly outpacing the daily transactional output of BTC by a whopping $3 billion.

DeFi is only scratching the surface on its potentially disruptive effects — more exciting developments are yet to come.

IoT, Healthcare, Supply Chain, Identity Security… Crypto Beyond Finance

2020 has been an epic year for cryptocurrency and may be seen as a turning point for the currency in the distant future. Black Thursday in March took billions off the markets and many predicted a very long, sluggish recovery for Bitcoin. The ATHs reflect anything but that.

The upcoming year will likely also yield developments in areas not related to monetary transactions. Niches such as healthcare, supply chain management, and identity security, should see increased growth in 2021.

Cryptocurrency has the capability to innovate in healthcare, especially considering the extraordinary circumstances the world is currently plagued with. Hospital staff can manage patient information, track appointments, and perform inventory control using blockchain technology, and possibly pay for consultations and drugs, order food, or sell medications using tokens.

The developments and growth in 2020 in the crypto world paint an optimistic, bullish future for the years to come. Expect more ATHs, but buckle up, it’s going to be a bumpy ride!