It is the view of Cuy Sheffield that institutions are under-estimating the mechanical Bitcoin buying of retail investors and how it will influence the price of BTC in the long term regardless of whether Bitcoin halving is priced in.
Institutions Under-Estimating Mechanical Buying of Bitcoin?
1/ Regardless of whether the 2020 halving is priced in, I'd argue that institutional investors may be underestimating the growth potential of retail mechanical buying and the impact it could have on driving price appreciation over the long term https://t.co/23wuKiVkCz
— Cuy Sheffield (@cuysheffield) January 5, 2020
Cuy, the Head of Crypto at Visa, while taking to Twitter, also argues that the best way of driving Bitcoin retail adoption over the long term is “to build and promote products that allow passive dollar cost averaging through auto buying and auto earning of BTC.”
Bitcoin and cryptocurrencies in general are still held with skepticism partly because of its unregulated nature. It however proves to be an important remedy in remittance and over time, it has metamorphosed to be a reliable store of value despite its fluctuating prices.
While institutional investors-who are under the tight grip of regulators, adopt a wait-and-see approach, even under-estimating the will of retail investors who sense an opportunity, the latter may turn out to be agents that will pump BTC prices to new highs.
Not only that, retail and every day investors will drive Bitcoin adoption.
The Power of Auto-investing Feature
A recent study reveals that majority of Americans, 79%, know of Bitcoin with a third of them believing that Bitcoin and cryptocurrencies will be mainstream in the next decade. Another survey complemented the study and shows that the number of American HODLers nearly doubled in 2018.
Here, Bitcoin’s popularity is increasing but there could be more if Bitcoin as a saving technology is built and investors urged to dollar-cost average through auto-rebuy offered by Coinbase and other platforms.
Introducing auto-investing features make it possible for ordinary folks to invest in the technology—and its promises, since most of them rarely think of saving or investing money every day. Besides this, Cuy says it will “maximize the LTV of a retail Bitcoin buyer and drive loyalty to wallets or exchanges while creating sustained buy pressure.”
Price Bitcoin in Satoshis
Earlier, another argument was floated and its proposal was that exchanges should price Bitcoin in Satoshi, not whole expensive units that discourage would-be admirers of the currency.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich