If we are to believe the words of Coinbase’s David Duong, there is still a huge interest in crypto from institutional investors. That interest remains, despite the fact that in 2022 we saw a lot of misery with the implosions of Terra and FTX, among others.
The interest in crypto remains
Duong was a guest on Monday’s “First Mover” broadcast of CoinDesk. Here, he said institutional investors’ interest in crypto hasn’t subsided after the 2022 woes. “The trend for institutional adoption hasn’t changed… it’s still there,” said an optimistic Duong.
Even the collapse of FTX, a stock exchange platform that was seen as a reliable party all over the world, does not change that, according to Duong. This makes it seem as if institutional investors understand what it’s all about.
Bitcoin (BTC) is essentially a form of money that you can manage without financial intermediaries. In principle, you do not need any exchange platforms at all to have bitcoin.
Cyclical development of bitcoin
Furthermore, Duong indicates that it seems that institutional investors, Coinbase’s wealthier clients, also recognize that there is a “cyclical development” for the industry. What you mainly see is that the prices are developing around the four-yearly halving of bitcoin.
Every four years, the reward for bitcoin miners for producing a new block drops by half. They currently receive 6.25 bitcoin per block found and in April 2024 that reward will be halved again. As a result, bitcoin’s inflation is slowly but surely falling towards zero.
Institutional investors are “still here” preparing for the next cycle, Duong speaks on CoinDesk’s program.