Will Bitcoin keep its essence in the face of institutional adoption? 6 specialists say yes

Key facts:
  • Cryptocurrency will always be a liberating option, according to panelists.

  • Large and small institutions must align their economic practices with BTC.

Alex Gladstein, director of strategy at the Foundation for Human Rights, believes that ” Bitcoin (BTC) is a key mechanism for 87% of humanity to escape authoritarianism. A social value perspective that cannot lose sight of the institutional investment it is adopting to the first of the cryptocurrencies.” This was pointed out during the conference The B Word held this Wednesday July 21 virtually.

Gladstein participated in the panel that analyzed how Bitcoin can preserve its top value propositions in the face of institutional adoption. During the session, ecosystem connoisseurs such as Jameson Lopp, Dhruv Bansal, Wiz and Brett Winton concluded that, above all, cryptocurrency will keep its essence.

Panelists noted that, because of their strengths, Bitcoin will always be an option for the citizens of the world to escape the totalitarianism of governmentsas well as the inflationary methods of the conventional banking system. To achieve this, everyone must be aware of the benefits they can derive from the network.

During the talk, Gladstein delved into what he considers “very important.” That institutional investors become aware that Bitcoin represents the true criteria of Social Responsibility, sustainability and sustainability to ensure the future of humanity. In this regard, he expressed concern about what he discovered when he read the Report of the Sustainable Development Goalsrecently presented to the UN.

The report appears to have been created by authoritarian governments, even drafted by no less than Bashar al Assad’s Syria. In fact, if you look closely and look closely at the goals themselves, they do not mention concepts such as democracy or privacy protection. Even the word human rights is barely mentioned. The document shows as if a group of governments came together and said ‘this is where we want to be in 2030 and we don’t want to have democracy, or privacy or civil liberties, or fights against corruption’. None of these words are mentioned there.

Alex Gladstein, strategy director of the Foundation for Human Rights.

Therefore, the expert believes that Bitcoin is a useful mechanism because it offers freedom to individuals, especially sovereignty because a high percentage of the world’s population has no real ownership of their own money. “They don’t even have a constitution or an independent judicial system. So Bitcoin offers them even more freedom and democracy than those written statements could stand for on their own,” he added.

Sam Korus of ARK Invest moderated the panel in which Brett Winton and Alex Gladstein shared impressions. Source: Screenshot/ The B Word.

Do you want quality of life for humanity? Bitcoin is your best ally

For Brett Winton, research director at Ark Invest, in a spontaneous way Bitcoin is aligned with the ESG matrix, the three letters that represent good economic practices in the pursuit of sustainable development.

The ” E ” stands for the environment, the “S” stands for social concern and the “G” stands for corporate governance guidelines. Together they are planned practices that rethink the organizational culture, not only of large corporations, but also of small businesses around the globe.

What Winton believes is that the ESG matrix of the small and large corporations must be sustained by what he called the Energy of Big Money, which means channeling efforts to base Bitcoin mining on renewable energy.

Bitcoin is going to completely unlock so much renewable energy around the world that it’s going to honestly transform the way we interact with energy. So Bitcoin is something I think you should absolutely get involved in. You’re going to have to, you’re going to have to learn a little deeper to be comfortable with yourself, but definitely do it.

Brett Winton, research director, Ark Invest.

How good is joint custody?

Earlier, the panel focused on discussing alternatives to custody of funds for institutional investors. The debate answered questions such as what will be the best custody option for large and small corporations?

Lopp, Dhruv Bansal, co-founder of Unchained Capital, and Wiz, operator of Bitcoin explorer mempool space, Wiz, noted that when it comes to Bitcoin custody, the best option will always be to take full responsibility and that each user, company or institution store their own funds, without intermediaries.

Matt Odell moderated the debate in which Lopp, Wiz and Bansal participated. Source: Screenshot/ The B Word.

Panelists then voiced concerns that more and more BTC is in the hands of centralized custodians, burying the bitcoiner community motto “It’s not your keys, it’s not your bitcoins.” It means you don’t completely control your assets, when you give someone your private key. However, joint custody seems to be the necessary risk to be taken as technology advances and greater adoption is gained.

Part of the spirit of Bitcoin is that you are supposed to keep it under your own domain, but if you look at how El Salvador will adopt it you will see that there they are not thinking much about the essence of cryptocurrency. Although I think it’s a good starting point, that’s why I think there’s still a lot of work to be done for the individual community, especially in developing countries where they don’t really have a computer, a smartphone, much less will they be able to run a node. Perhaps the best thing for a store owner in El Salvador or a large institution like Morgan Stanley to be able to enter Bitcoin, is through a custodian who, while having third-party risk, subsequently as they mature within the ecosystem, hopefully will adopt settings with less risk.

Dhruv Bansal, co-founder of Unchained Capital.

Last year, institutional adoption gained momentum. In fact, earlier this year, CriptoNoticias reported that institutional investors would opt to have 20% of their reserves in bitcoin. This is in accordance with what was pointed out by CEO and chief investment officer of Ark Invest, Cathie Wood.

At that time, what Wood said, had a correlation with the study of the investment bank JPMorgan, reviewed by this means, in which it was revealed that 11% of institutions had already invested in bitcoin and other cryptocurrencies.

However, this week Glassnode notes in its report that the interest of investors is decreasing. As a sign of what is happening, the document highlights Grayscale, whose cryptocurrency-based product (the GBTC) has been trading “at a discount” with respect to bitcoin, in a range of 10% to 15%. In short, it reveals that bitcoin is currently less valuable in the eyes of institutional investors.

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