by Morgan Sliff
A perpetual question for investors questioning cryptocurrency’s legitimacy and role in the future of overall currency is if the now decade-old digital cash survive. Added to that is will it be accepted by the general public? Will it be denounced by large banks? Will it stabilise?
Cryptocurrency’s role in society ultimately depends on its ability to amass interest. We give value to things we believe are valuable; take the case of gold or precious gems. Without our assigning them value, they are but meaningless, shiny objects.
And again, the challenge with cryptocurrency is widespread acceptance. Many have benefitted from lucrative price spikes from Altcoins and Bitcoins, but some are still skeptical as to a definitive role of cryptocurrency in the future. More online and brick-and-mortar merchants are accepting cryptocurrency, and that has been a positive progression for digital currency. But amongst the small noise are two large institutions that have further legitimised cryptocurrency for institutional investors and for the public in general. Read on about recent announcements from American-based big banks, Goldman Sachs and Morgan Stanley.
In October 2017, Goldman Sachs made an announcement about a new operation designed for exchange of derivatives and products delivered via cryptocurrency. As of November 1st, 2018 Sachs has delivered on that promise and has begun to bring a small amount of clients aboard for its new Bitcoin trading product. Their new system is made to shrink volatility and provide fairness for transacting parties. They have yet to announce when it will be made available for additional clients.
With these Bitcoin-based derivatives, investors are able to thoroughly manage risk, making it more efficient and safer to hold digital currency. Through this arena, digital assets are increasingly accessible to corporations and institutional investors, passing on more legitimacy to the crypto world.
Morgan Stanley recently put out a report called “Bitcoin Decrypted: A Brief Teach-in and Implications,” which gave a briefing on the last six months of Bitcoin’s existence, sprinkled with insights, trends, and projections. The report, serving as an update to their recent report published at the end of December, called Bitcoin an entirely new class of investment for institutional investors.
Morgan Stanley’s study highlighted Fidelity’s new crypto services division, Binance’s investment in crypto firms, and regulatory approvals. It also cited the rise of Stablecoins, which were conceived in 2017, but the report did not give merit to them surviving long-term. Morgan Stanley’s report included overall positive outlooks for cryptocurrency and further validated investor and public pursuits in the digital currency field.