Morgan Stanley Says Bitcoin Is Goldmine For Institutions

A report recently released by the department of research at Morgan Stanley shows institutions have started to get more involved with Bitcoin and cryptocurrencies. The report titled ‘Bitcoin Decrypted: A Brief Teach-in and Implications,’ also notes interest in BTC from retail traders has lately been declining.

A Revolution To The Current Financial System

Morgan Stanley, a leading investment bank in the United States, in its research, analyzed the cryptocurrency market over the past six months.

The analysis unearthed some exciting facts. For example, it states that there is an increase in institutional investors who are believing in virtual currencies. These investors’ belief digital assets will bring a revolution to the current traditional financial structure.

In support of its research, the report notes that cryptocurrency assets under management have gradually increased from early 2016 to currently stand at 7.11 billion U.S dollars spread across VC firms, hedge funds, and private equity firms.

Throughout the report, bitcoin is cited as the primary point of reference with the researchers arguing that it ‘improves and solves its problems.’ Since its birth in 2009, Satoshi Nakamoto, the anonymous creator of bitcoin, considered it as ‘electronic cash.’

Before gaining the following, it has now, bitcoin hit the headlines in its early days as it was used to transact in the darknet. It growing market capitalization caught the attention of entrepreneurs, journalist, and tech-savvy individuals who joined the space in large masses.

While bitcoin is still regarded as a speculative investment, people are already using it as a store of value. Dr. Zeynep Gurguc of Imperial College London has termed it a potential mode of payment in the next decade.

However, he notes that there are issues that need to be addressed before its incorporated into payment systems. These include; scalability, regulation, usability, volatility, and privacy.

Additionally, the researchers assessed the gradual rise of stablecoins which began towards the end of 2017 and has gathered pace this year. They note that the decline in crypto prices has led to an increase in the share of bitcoin trade volume taken by USDT.

However, they don’t see all stablecoins surviving in the long term. According to them, those that will survive will most likely have lower transaction costs, high liquidity, and a clear regulatory structure.


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