Three reasons for the dominance of Bitcoin whales will soon come to an end

Three reasons for the dominance of Bitcoin whales will soon come to an end

Anyone who is in any way associated with cryptocurrencies, you probably have heard about whales, about those who have a huge impact on the market of Bitcoin. Because of their presence, many potential investors are afraid to buy, because whales are able to manipulate the price of the cryptocurrency. However, Chris Klein, co-founder and COO of Bitcoin IRA, do not agree with these beliefs.

According to a recent study by Chainalysis related bloccano, a group of whales to be approximately 1,600 investors, who collectively own the bitcoins in the amount of USD 37.5 billion. USA — about one third of the total available. It is not surprising that many potential investors to enter the space, given the potential for market manipulation.

Chris Klein understands their concerns, but believes that the days of ruling this group are numbered, and below gave three reasons why bitcoin whales lose their influence in space.

The first reason: Emphasis in education in the field of cryptocurrency and blockchain

The saying “knowledge is power” certainly applies to technology. Blockchain was once covered by a veil of secrecy; no one knew exactly how it works, or how to explain it. However, 2018 was a year full of great breakthroughs in the application of this technology.

For example, this year the conference Consensus economic development Corporation of new York (NYCEDC) announced plans to launch blockchain-based resources in new York, which aims to raise awareness about the technology through educational programs.

Although many doubted the assertion that the blockchain has entered our life to stay forever, as people are becoming more aware of decentralized technologies, increases the possibility that soon they will be able to identify the fraud and to correctly interpret unusual activity in the sector of cryptocurrency.

The second reason: Regulation

2018 was also a key year in the regulation of the cryptocurrency space. In addition, the SEC is beginning to bring proceedings against the dark horses and unscrupulous ICO, regulators and the justice Department are also involved in dealing with any threat manipulations in the market. It definitely will force whales to calm down and stop “stirring the shit water.”

In addition, companies such as Chainalysis collect large sums of capital to help companies that support Bitcoin to detect fraud. Such actions will eventually help to overcome the barrier between institutional investors and sector of cryptocurrency.

The third reason: the Growth of the institutional presence

Currently, the whales continue to affect investment but in the long run and with the maturation of the cryptocurrency market, their ability to influence prices will be reduced significantly. First, the larger the cryptocurrency market, the less the chances of whales. Over the last few months of the cryptocurrency sector has experienced a wave of the parish of institutional interests, including JP Morgan, declared in March about starting their own blockchain network. Nasdaq and cryptocurrency exchange Gemini in April announced a partnership, and Goldman Sachs discussed the beginning of the trade Bitcoins.

As companies from wall street are seriously interested in the cryptocurrency space, the impact that was provided by the whales is significantly reduced.

Today, the whales continue to be major players in the ocean cryptosystem, but more regulation, the widespread adoption and focus on Blockchain technology will gradually negate their dominion and influence.

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