The primary objective of this research is to analyze the impact of institutional investors on the future of Bitcoin. By investigating the relationship between institutional investors’ intentions and theoretical aspects of the Bitcoin ecosystem’s characteristics, a clear overview of the current situation is enabled and provide insights into the potential implications for the future development of Bitcoin. The case studies on prominent institutional adopting Bitcoin are required to identify the purpose of their investment and cluster these into groups.
Specifically, the research seeks to achieve the following objectives: Evaluate the impact of institutional investors on the asset's market price dynamics. Examine the influence of institutional adoption on the general acceptance and traffic of Bitcoin network. Identify potential risks and challenges from increased institutional involvement with Bitcoin in the future.
Created under the pseudonym Satoshi Nakamoto, Bitcoin, a decentralized digital currency, has gained considerable attention and recognition since its inception in 2009. Bitcoin protocol creates a secure and transparent method of conducting financial transactions without intermediaries, utilizing the underlying technology of blockchain. The transactions, in this case, are data. Bitcoin has transformed from a niche concept of financial inclusion worldwide to a universally acknowledged asset, garnering attention from investors, regulators, and academics alike, who seek to understand its potential influence on tomorrow's financial landscape. In the early days, people wondered whether Bitcoin could survive, as the idea of decentralized money operates against the predominantly centralized existing monetary system. Many countries have warned their citizens regarding the potential threats associated with Bitcoin, citing it being used for criminal purposes and the currency's extreme volatility. Several nations, such as China, have banned using and creating Bitcoin. Despite the difficulties it has faced, Bitcoin has kept going.
The initial concept has given rise to a novel crypto industry that now boasts an estimated value of over one trillion dollars. Given its market capitalization, Bitcoin has become one of the most valuable assets globally. No longer do people discuss whether Bitcoin will still exist tomorrow. Today, legislators are discussing regulating the cryptocurrency industry to maximize returns.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- Background
- Objective and Purpose
- Research Approach
- THEORETICAL PRINCIPLES OF BITCOIN
- Cryptography
- Timestamp Server and Proof-of-Work
- Blockchain
- Bitcoin's Applications
- The Ecosystem of Bitcoin
- Node Operators
- Bitcoin Developers
- BTC Custody
- Cryptocurrency Exchanges
- Bitcoin's Current State
- Pricing Development of Bitcoin
- Bitcoin Acceptance to the Day by Usage
- Risks Opposing to Bitcoin
- Ways to Invest in Bitcoin
- Summary
- ANALYSIS OF INVESTING IN BTC BY DIFFERENT PARTIES
- Hypotheses
- Research Objectives
- Background Information
- Case Studies
- Grayscale - GBTC, the First Regulated Investment Vehicle in USA
- MicroStrategy - Bitcoin as Diversification Assets
- MicroStrategy - Bitcoin as Marketing Tool
- Coinbase New Business Models with Bitcoin
- PayPal - Integrating Bitcoin Network
- El Salvador - Bitcoin as Legal Tender
- Summary of Findings
- INFLUCENCE OF INSTITUTIONAL INVESTORS ON BITCOIN'S FUTURE
- Price-Oriented Investors
- Application-Oriented Investors
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis examines the impact of institutional investors' investments in Bitcoin on its future. The main objective is to analyze how these investments influence Bitcoin's development and its potential to become a widely accepted digital currency.
- Bitcoin's technological foundations and applications
- The role of institutional investors in the Bitcoin market
- The potential impact of institutional investments on Bitcoin's price and adoption
- The future of Bitcoin in light of institutional involvement
- Risks and challenges associated with Bitcoin investment
Zusammenfassung der Kapitel (Chapter Summaries)
The thesis begins with an introduction to Bitcoin, providing an overview of its underlying technology, applications, and current state. It explores Bitcoin's ecosystem, including node operators, developers, custody providers, and cryptocurrency exchanges. Chapter 2 examines the impact of institutional investors on Bitcoin's future, focusing on the effects of their investments on Bitcoin's price and its adoption as a currency. The thesis then analyzes various case studies of institutional investors, including Grayscale, MicroStrategy, Coinbase, PayPal, and El Salvador, to understand their investment strategies and the influence of their involvement on Bitcoin's development.
Schlüsselwörter (Keywords)
Bitcoin, institutional investors, cryptocurrency, blockchain, digital currency, adoption, price volatility, financial markets, decentralized finance (DeFi), regulation, investment strategies, case studies, Grayscale, MicroStrategy, Coinbase, PayPal, El Salvador.
- Quote paper
- Anonym (Author), 2023, The Impact of Institutional Investors' Investment in Bitcoin on its Future, Munich, GRIN Verlag, https://www.grin.com/document/1371038
