So much for the people's money.

Bitcoin is now in the hands of Wall Street. There is a saying, "fixed money always pools". Once again, we see this happening in real time.

Michael Saylor continues his buying spree. He is a well known Bitcoin advocate. MIcrostrategy is a large holder of BTC, having one of the largest wallets.

Many applauded the move by Saylor to become a major advocate. There is no doubt that his long term advocation brought a lot of attention to cryptocurrency in general. He has spoken on countless occasions along with lobbying for reform that would help Bitcoin.

That said, we are seeing the tenets of Satoshi obliterated. Ironically, Saylor isn't the biggest culprit.

Wall Street Owns And Controls Bitcoin

What comes to mind when we think of Wall Street. For many, it is the stock exchange. Unfortunately, not far removed from this are investment banks and other financial firms.

Lehman Brothers. JP Morgan. Goldman Sachs. Salomon Brothers.

The list goes on.

Wall Street is very good at what they do. Over the last couple years, digital assets appeared on their radar. This was something that was strangely applauded by the crypto community. Of course, as we will see, it shows where the focus is.

Bitcoin still gets most of the attention. It is the brand that people associate with crypto-assets. Like Coke for soda or Kleenex for tissue, many say "Bitcoin" when they mean "cryptocurrency". This could be part of what drives the overwhelming market cap compared to the rest of the coins and tokens.

Of course, Wall Street is helping this one along which is pushing the tenets of crypto even further underground.

While many are for Michael Saylor, I am not sure there is the same feelings towards Larry Fink.

Wall Street Hijacking

The headline is from an article that appeared on U.today.

Accordingly, it stated that Blackrock now controls 2.7% of the entire Bitcoin supply. This is a figure that is likely higher when we consider the fact that many coins were lost. Some estimate this number to be 4-5 million.

Even if we use the 2.7%, this is a substantial amount of the entire float. One benefit of this situation is the holdings do not influence the network. Bitcoin using the proof-of-work consensus mechanism which means the miners run the network.

That said, the idea of Bitcoin as people's money is dead. This is institutional takeover by Wall Street, something they excel at.

It should be pointed out that the holdings are not by Blackrock with regards to its corporate balance sheet. These were purchases on behalf of their clients. This is tied to the Bitcoin Spot ETF which was approved in January 2024. Blackrock offeres the largest ETF based upon assets under management.

The Tenets Of Satoshi

The good news is that Bitcoin is not the only game in town. In fact, for monetary properties, it is basically done.

Bitcoin does hold great value. Wall Street has a new toy and it will use it completely. We can expect layer after layer of derivative tied to BTC over the next few years. These firms will figure out ways to leverage this asset, providing more products to sell.

For those holding BTC, this is likely a very promising outcome. It will probably drive prices higher, enriching those with even a small position in the asset.

As for the values and tenets behind the early adopters, crypto still fulfills this. Bitcoin, albeit the largest, is not the only game in town. Perhaps no single coin or token fulfills the vision of Satoshi but, collectively, it is emerging.

DAO. DEX. Distribution. Decentralzation. Self-custody.

These are all elements of the crypto world which we can find. In fact, they are expanding. So while the centralized entities get more powerful, the rest of the industry is making progress.

We can expect Wall Street to repeat this process with many other coins. The difference is, for the most part, there is no cap on the number of units. Also, even if Wall Street takes certain networks over, others are constantly being created.

So why the applause for Wall Streets entry if they kill the tenets upon which crypto is supposedly based upon?

It shows, the main focus is only green candles. As we can see, Wall Street is good for this over the long term.

Posted Using INLEO