June 19, 2024

Meltem Demirors: Institutions Threaten Bitcoin

Meltem Demirors: Institutions Threaten Bitcoin

CoinShares Chief Strategy Officer Meltem Demirors doesn't think institutional investors are helpfulfor the crypto industry, and Bitcoin ETF – the main instrument of the crypto market.

In an interview with RealVision, Meltem noted:that growing centralization threatens a counter-revolution in the digital asset ecosystem. Concentration of a large number of assets in a small number of firms – centralizes risks.

With traditional finance, this is dangerous, but not fatal. Saving banks remains commonplace in any country in the world. However, with bitcoins, this is both dangerous and potentially deadly, Demirors claims.

Moreover, if cash flows from Wall Streetflow to regulated custodial services, they accumulate most of the available bitcoins on deposits. Then traders will stop trading the asset itself and use the Bitcoin network itself for exchange. A depositary receipt for the bitcoin that is in the vault will be sufficient. Under such conditions, will the network be able to survive and Bitcoin to remain “itself?” – Demirors asks a question. 

According to the cryptostrateg, new business models are notrisk-prone, but create a sharp imbalance between the principles of the Bitcoin community and the reality of most of the industry. The principles of confidentiality and decentralization “dissolve in big money”. Ultimately, power will remain with those who control the coins.