1 minute read
- Over the course of this year, institutional investment has been massively on the rise.
- Big businesses are getting heavily involved with the crypto space and are specifically, bitcoin.
Over the course of this year, institutional investment has been massively on the rise. Big businesses are getting heavily involved with the crypto space and specifically, bitcoin. This was potentially down to the “digital gold“ comparison that bitcoin hasn’t been able to shake since it was created over 10 years ago. But even so, these institutions may be looking for the next big thing away from bitcoin and more into the alternative digital asset market…
At the start of this month on the 1st of December Ethereum 2.0 was finally launched with the community very excited about the prospect of this new upgrade. Phase 0 went live on this day but some analysts were quick to say that the networks' native token should only be judged on its own characteristics rather than as a replacement to the leading coin.
The chief executive officer and co-founder of Real Vision, Raoul Pal said the following in a documentary on the company mentioning the crypto industry:
“I’ve always thought this digital asset space is huge – and it’s not just bitcoin – because there are going to be different applications for different things… Ethereum – An Investigation… I think of the two as having a very nice combined asset allocation.”
As the CEO is an early investor in the leading crypto coin, his points seem a bit more realistic in today’s world. The coin is much more expensive and much more attractive to retail and institutional investors alike but of course, the risk is very much still there.
The 2.0 upgrade for the Ethereum network is going to be increasing the scalability of the ecosystem as well as the security and energy efficiency. As a result of this, prior to its launch a lot of hype was generated.
The future of Ethereum is uncertain and very exciting at the same time. Who knows what the coming year has in store for the digital space. Some believe that as more big institutions such as Greyscale put more and more money into assets such as bitcoin and Ethereum, alternative crypto assets will decouple from the leading coin and go off in their own direction. On the other side, some believe that institutional investment is a bad thing for the industry and could potentially ruin what the market has built over the past 10 years.
I suppose the question is, will more institutions pay less attention to bitcoin and focus their money onto assets such as ethereum next year?
© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.