Institutional investors are ready for the move to BTC, says Kraken’s CEO

Institutional Investors Are Ready for the Move To BTC, Says Kraken’s CEOBy Marko Vidrih on The CapitalOther institutional investors will follow those already present in the bitcoin space (BTC), as their mentality is generally that of “a flock”, said Jesse Powell, CEO of the Kraken exchange in an interview with Bloomberg TV. He also said that bitcoin is already a store of value and will soon outperform gold.The interviewer speculated that BTC is unpredictable given its volatility. He also asked about the type of infrastructure and regulation that could help BTC escape the influence of factors such as whale movement and handling, paving the way for easier access for institutional buyers.Powell argued that the institutions that are comfortable with bitcoin are “kind of a flock”, explaining that most take the lead from others. “They want to be able to have someone else indicate when things are going badly” and not be “the only ones who stick their necks out,” he added.The more people like Paul Tudor Jones join the industry, the better and easier it will be for people. Kraken’s CEO added that this would help provide a sense of trust and legitimacy.Regarding the much-debated volatility of the world’s number one currency, Powell stressed that traditional markets are also volatile, adding that bitcoin is “the only thing you can look at in the past ten years and find that it has increased by one million percent“.If you put any amount of money into BTC for five years from any moment, “it’s increasing enormously in value.” In recent months, bitcoin “has made more of the entire S&P 500,” added the CEO.As for the manipulation, Powell stressed that the Federal Reserve is buying “junk bonds” from bankrupt companies.“It’s a joke, the market is manipulated,” he said, adding that it is because the United States government is printing trillions of dollars to pump the value of the shares.“You can’t measure anything in dollars anymore, inflation will be out of control very soon,” he said, adding that he personally sees BTC as a hedge against dollar inflation.Asked who the real buyers were at this point, Powell said that in the past three months there has been a “massive influx” of new registrations: accounts of all types of individuals and companies, such as hedge funds, retail investors, asset managers, traders and more.He also noted that people are using their stimulus checks to invest in bitcoin or equity.We are already at the point of “bitcoin as a store of value,” Powell says, adding that it has 10 years of history behind it — “it’s at the top.” He added that BTC will soon outperform gold as a store of value.One of the main reasons behind this, says Powell, is that BTC is predictable. People are “crowding” as a safe haven because of its limited and predictable supply.He said, “People are concerned about traditional markets and what’s going on with the USD and are looking for a safe haven asset.” Nobody can print Bitcoin and nobody “will mine an asteroid full of Bitcoin”.Using BTC “becomes much easier over time when we develop these tools for the ecosystem” and “soon enough all the technology behind Bitcoin will disappear and it will be just like the USD where nobody really understands how it works but everyone they use, “concluded Powell.At the time, BTC is trading at 9,499 USD. It remains nearly unchanged in the last 24 hours and dropped 2.51% in the past week.Author: Marko VidrihFeatured image credit: UnsplashCryptomarkshttps://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/hrefInstitutional investors are ready for the move to BTC, says Kraken’s CEO was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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Author: Marko Vidrih