They don’t just prepare for adoption.
Most people in cryptocurrencies celebrated that institutions were adding cryptocurrencies to their portfolio. Consequently, demand rose and many more people got into crypto market. But, there’s something bigger on the horizon. Let’s find out what this is.
They Want to Take a Market Share
The competition for market share is what made companies go into cryptocurrencies. And the biggest companies that are creating crypto services will likely to benefit the most. Especially when funds are creating various markets for them to take advantage of. For financial institutions, cryptocurrencies became a field for taking the most commission while having the most users paying by cryptocurrencies. When we look at the reasons, they offer crypto payments, ETFs and future markets to make even more cryptocurrencies on their balance sheet. With commissions for both buying and selling, they will add even more cryptocurrencies on their portfolio.
They Want to Prepare for the Market Crash
Throughout history, massive monetary expansions have resulted in hyperinflation. And this occurrence will repeat again if no measures were taken to prevent it. However, most countries will start monetary tightening to combat hyperinflation. As a result, companies would require emergency liquidity and they would sell their cryptocurrencies instead of company stocks. This would have devastating effect on cryptocurrency market. Moreover, a stock market crash like in 1929 would occur first and moves toward the world causing all the markets to go down in a heartbeat. The end result would be lots of corporations getting out of business due to debt and being strapped from liquidity.
According to you, why companies are getting into cryptocurrencies? Does companies have a sinister agenda behind cryptocurrencies? Share your thoughts in the comments section below.
Why Companies Are Getting Into Cryptocurrencies was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.