Both institutional and retail investments are indispensable if crypto is to grow, but it’s likely that in 2020 we’ll see different kinds of investment from different demographics. As experts tell Cryptonews.com, institutional investors might become more important next year and are likely to focus mostly on bitcoin, while retail investors will be more open to other digital assets but won’t be as active in driving market activity.
2019: investments in infrastructure
Looking back at 2019, it seems that Cryptonews.com was generally accurate in its predictions of institutional investment for the outgoing year, with at least one minor exception.
Most notably, experts we talked a year ago predicted that banks, investment funds and other ‘institutions’ would concentrate most of their investment activities on ‘blockchain over bitcoin,’ focusing on crypto-related platforms and services, rather than cryptocurrencies themselves. In particular, they suggested that institutions would be especially interested in crypto-powered platforms that enable cross-border transactions and payments.
This is mostly true: if you type “”bank invests” AND “cryptocurrency” OR “blockchain”” into Google (or perhaps a less privacy-invasive search engine), the vast majority of stories you’ll find will relate to banks investing in crypto-exchanges, bitcoin wallets, enterprise or industrial blockchains, crypto-payment service providers, and other crypto-related or blockchain-focused enterprises.
Still, while most banks and institutional investors were focused specifically on actual businesses, 2019 did witness a slight increase in pension funds and other funds investing directly in cryptocurrencies themselves.
2020: different strategies
What about next year? Firstly, it’s likely that institutional investors – banks, hedge funds, pension funds, endowments, etc. – will show more interest in cryptocurrencies themselves, or at least in bitcoin.
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