Since Bitcoin’s inception, controversy has always been with him. Even as its popularity increased, the debate grew between those who advocate this cryptocurrency and those who consider it a fraud. It is in that same debate that many times the topic of Wall Street opinion on BTC has come up, is it a completely hate relationship?
“Wall Street hates Bitcoin because they love the Federal Reserve.” Is that so?
According to Anthony Pompliano, co-founder of Morgan Creek Digital and advocate for Bitcoin implementation, yes. What happens is that recently, Pompliano expressed in his Twitter account that “Wall Street hates Bitcoin because they love the Federal Reserve“
In addition, he argued that the reason for this is that on Wall Street “They can’t believe that an algorithm can do better monetary policy than a group of old white guys in suits and ties” With this comment, Pompliano’s opinion is evident.
The funny thing about this tweet was the wave of responses it received. We especially refer to those of those people who only paid attention to the “old white guys” part. An example is the comment of a user named @ Ouija1000, who criticized Pompliano’s emphasis on the fact that they are white men.
The latter is understandable if we consider the marked situation of tension that the United States is going through since the murder of George Floyd, and the subsequent wave of racially motivated protests in American society.
Pomp responded by citing a Forbes article and study titled “The Federal Reserve is still mostly white and male, but it is pushing for it to change.”
Why is this institutional aversion towards BTC generated? Is it absolute?
It is well known that the main problem for those who operate on Wall Street regarding Bitcoin is its volatility. Many people argue that it has more to do with an issue of avoiding the challenge of status quo which is beneficial to them, but that would be to enter fully into a fairly extensive debate.
However, this does not mean that Bitcoin is not gaining recognition within the financial and institutional world. For example, with the introduction of derivatives, many institutions have become more or less involved with BTC.
Just look at how the accumulation of BTC by Grayscale Bitcoin Trust increases to understand this last point.
As is the case with derivative products for other asset classes, these allow Bitcoin holders to set their prices. With this, these investors would be transferring the risk of market fluctuation to other parties.
Also, the statements of people like Paul Trudor Jones are causing more and more traditional actors to consider Bitcoin. This person has been one of the first traditional investors to profess their interest in Bitcoin.
However, this will not make traditional Bitcoin detractors continue to exist. The good news is that although these detractors do not change their minds, there are institutions willing to take the risk in one way or another, as mentioned by Fidelity Digital Assets at the beginning of the month.
Specifically, the financial giant Fidelity Digital Assets released information on a study where they found that the interest of institutional investors in digital assets such as Bitcoin has increased considerably.
What Pompliano expressed in his tweet is not entirely false: if there is a majority on Wall Street that considers Bitcoin as detestable. If not, ask Warren Buffett.
However, this does not eliminate the fact that Bitcoin has come a long way to be increasingly recognized by different institutional actors.
The opinions of the more traditional and conservative investors or institutions should not be completely discounted. After all, Being open to different perspectives is critical to building the right cryptocurrency industry that enables its large-scale implementation.
The truth is that Bitcoin came to challenge paradigms, and that is not always to the liking of everyone. Furthermore, this cryptocurrency is considered a volatile asset, so it will naturally not be suitable for those who have a short investment horizon and are extremely risk averse. And that is fine.
So it should come as no surprise that traditional asset institutions have yet to embrace the use of Bitcoin en masse. However, the latent challenge for the cryptocurrency community is to create, convince with facts, and make the impossible possible.