Robin Hood Showing Us The Future For Bitcoin

9 months ago

It was revealed this week that Robin Hood is sitting on 118,000 BTC. There is no confirmation (or denial) by the company. This was concluded by looking at wallet activity.

Some speculate that much of this is Microstrategy's holding. Others say it shows the power of retail investors when it comes to this asset class.

Whatever the realty around the ownership of this bitcoin, it is forecasting what the future will look like.

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TradFi Taking Over

Decentralized Finance (DeFi) fell out of favor. The bear market has obliterated this sector. Many (if not most) of the projects that were around 3 years ago are no longer here.

It also opened the door for traditional finance (TradFi) to step in.

This is exactly what Robin Hood did. We also see PayPal entering the space. This is the start of what is expected to be a longer process of larger, Wall Street institutions entering. In the end, all of these will act as custodians for investors.

Some expect this to be the move that attracts the masses. We can believe it will bring in big money.

It will also eat up a lot of the main coins, such as bitcoin and ethereum. Bitcoin is interesting since the distribution is capped at 21 million. Historically, this means that money tends to pool.

We know that the primary way people get ahold of this coin is to purchase it. This means the big money players can step in.

Here is where I believe Wall Street is in the process of hijacking crypto, at least the main assets.

Split System

It is my theory that we are going to be a split system.

Wall Street is going to gravitate towards the big stuff. This means that top end of the market capitalization will be swallowed up. Depending upon the consensus mechanism, it also means that control over the network is in their hands.

Bitcoin is likely out of their control, at least in terms of the base layer. The miners are the ones running the chain. Nevertheless, the distribution could end up held by Wall Street. This is ironic since Satoshi started BC with the intention of eliminating counterparty risk the banks provide.

We are going to have a decentralized system that operates outside the regulated one. There is no stopping this and decentralized infrastructure is going to radically alter the landscape.

It is likely that Hive coins are not on many centralized exchanges. This is something that isn't the end of the world. Other coins can be used as vehicle currencies to serve the needs.

The key is going to be getting DeFi built to the degree that it offers the financial services that users require.

We are going to see these people adhering to the basics of cryptocurrency. They are not going to give up their sovereignty as it relates to their assets. DeFi applications will be preferred, understanding the risks associated with counterparties.

Bitcoin is going to lead the charge into the centralized institutions. We can predict a time when sovereign wealth funds and, perhaps, central banks start to pick up this asset. If that is the case, it will get swallowed up.