Despite the fact that a number of major players have seized Bitcoin (BTC) bets by 2020, many aspects still prevent organizations from investing on a large scale, according to Robert Lee, analyst at Draper Dragon, Draper Venture Network.

“I think there are quite a few issues that still prevent most institutional investors from investing freely in Bitcoin,” Lee said during the Bitcoin Latin America conference segment on Tuesday.

“Number one is the reputation issues associated with Bitcoin’s previous links to organized crime, terrorists and drug traffickers. I think in recent years, many have very quickly rejected Bitcoin as a scam. ”
Silk Road, formerly an online black market, was one of the most important examples of the infamous activity that enabled bitcoin transactions. Li said that, in his opinion, the situation has now changed thanks to government action and assistance from analytical companies.

Bitcoin will become more and more legal for legal use in 2020. PayPal has recently added bitcoin and other cryptocurrencies to the platform, and traditional financial participants such as Microstrategy have started buying large amounts of the coin. The gateway has not yet opened when it comes to major players entering the room, but Bitcoin’s reputation may not be the only aspect that scares ordinary money.

He told me that the rules seem to get in the way too, even though the laws are specific to each region, with certain countries leading the way in space. He noted that “in many ways, cryptocurrency regulation here in the United States is not yet ripe.”

“Cryptocurrency spot exchanges are not regulated in the United States in the same way as national exchanges such as the New York Stock Exchange or the Nasdaq,” he said. “As you can imagine, they are not subject to the same standards of investor protection.”

Lee also mentioned that the major players are concerned about the manipulation of the bitcoin market, which he called rational fear in line with previous price actions as a result of relatively unregulated exchanges. According to Lee, volatility can also alienate new institutional bitcoins, as well as a “significant lack of institutional services and tools” for these players, although this aspect has improved in recent years.

A micro-strategy that pushed the challenge early on when it comes to big money seems to have recently expressed interest in buying more bitcoins than it already has.

Source: CoinTelegraph