Introduction
People on Wall Street are beginning to dabble in Bitcoin, establishing a robust stock exchange for Bitcoin as their ultimate objective. The decentralized technology rebels have advocated for has taken an intriguing new turn. Bitcoin has been around for the past decade (it was created in response to the 2008 financial crisis), but the major players on Wall Street have largely ignored, rejected, and even shut it down. Bitcoin was created as a response to the 2008 financial crisis. But there are indications that the prevalent mentality of "just ignore it, and it'll go away" might be changing shortly. For the time being, it does not appear that there will be any changes to the process of investing in Bitcoin and other cryptocurrencies through the Bitcoin stock exchange or possessing a digital wallet.
Wall Street Interest
Due to some contradictory messages, it is difficult to determine Goldman's current position. In March 2021, Fidelity sent the Securities and Exchange Commission a preliminary prospectus for an exchange-traded fund (ETF) that would track the performance of the Fidelity Bitcoin Index PR. However, other large businesses have shown interest in exchange-traded funds (ETFs). At this point, it is unclear whether or not the exchange-traded fund offered by Fidelity will be successful. It is not uncommon for new technology pioneers to engage in debates like this with seasoned professionals in the industry.
Bitcoin has only been around for over a decade, whereas Goldman Sachs and Fidelity were founded in 1869 and 1946, respectively. It is reasonable to anticipate that the key players on Wall Street will exercise caution until it has been determined how much an investment is worth. Despite the constant back and forth, it is essential to understand how the continued interest that major Wall Street corporations have shown in Bitcoin can impact your investment. The interest shown by Wall Street could affect investors, the rules governing Bitcoin, and initial coin offerings (ICOs).
Putting your money into bitcoin is still a high-risk move at this point. The market is extremely volatile and is virtually completely unmanaged. When investing in anything, but especially in risky endeavors like cryptocurrency, it is essential to measure the potential profits against the potential losses. It is still essential to store cryptocurrency in a wallet, such as the ones offered by Bitstamp, Bitfinex, or Coinbase. The following step establishes a connection between your wallet and a financial institution. They all employ two-factor authentication since it is the most secure form of authentication currently available. There, you will have the opportunity to trade your bitcoins for traditional currencies such as the United States dollar, the British pound, or nearly any other kind of fiat cash. In brokerage accounts, bitcoin can be exchanged for traditional currencies, and a select number of shops will allow customers to make in-store purchases using the cryptocurrency.
How Might Wall Street's Participation Affect Bitcoin Regulation?
Bitcoin is a peculiar animal when viewed from a variety of perspectives. The blockchain that underpins Bitcoin assures that every transaction is legitimate and that there have never been any fraudulent ones. Wow, that's quite an accomplishment. Despite this, the prospect of cryptocurrency regulation is not eliminated by its inherent safety. Existing legislation about securities could be adapted by authorities to apply to cryptocurrencies. Ether and Ripple, the second and third most traded cryptocurrencies, respectively, appear to be easy targets, although Bitcoin itself may be able to elude government monitoring.
Gary Gensler, a key financial regulator during the Obama administration, believes that "... there's a good case for both of them—but particularly Ripple—that they are noncompliant securities." Gensler was speaking about Ripple and Bitcoin. You should keep this possibility of new regulation in mind if you decide to invest in the Bitcoin stock market or any other cryptocurrency. More in-depth research into the inner workings of Bitcoin and other cryptocurrencies will be carried out due to the implementation of rules. New cryptocurrencies commonly use ICOs as a means of introducing themselves to both investors and the general public.
How Will This Affect Initial Coin Offerings (ICOs)?
Initial coin offerings (ICOs) allow cryptocurrency entrepreneurs to raise money through regular channels like banks and VC firms. During an initial coin offering (ICO), early investors purchase a portion of a new cryptocurrency for a lower price than its entire supply in return for Bitcoin or another form of legitimate cash. The recent interest on Wall Street in Bitcoin is unlikely to have much of an influence on ICOs. It is conceivable that authorities will have a stronger impact on initial coin offerings (ICOs) once they begin to control the burgeoning Bitcoin stock market and related cryptocurrency initiatives.
Conclusion
To begin, Wall Street has repeatedly proven that it can be profitable even without Bitcoin. Even if Wall Street companies never deal with bitcoin, they still have the opportunity to make consistent profits through trading fees and advisory fees. Institutions will always be required to facilitate the packaging, issuing, purchasing, and selling monetary products that are not bitcoin. This includes any other monetary product that is not bitcoin.
As a result, Bitcoin does not need Wall Street to function because it can operate independently. Bitcoin will continue to be an attractive option for some of the 1.7 billion adults who do not have bank accounts, the 1.2 billion people who live in countries with inflation rates of double digits, and the 13% of Americans who do not have enough money in their bank accounts. People who live in conditions of severe inflation or totalitarian control fall into this category.
