Institutional Investment and Backing the Technology — Is Companies Buying Crypto Enough?

At the start of 2021, we’ve had the opportunity to witness the great expanse of institutional investment in cryptocurrency — Bitcoin, specifically. 

The amount of money companies are spending on Bitcoin can be measured in millions and even billions of dollars. 

Most recently, Tesla, Inc. made headlines by investing $1.5B into Bitcoin and announced to hold or acquire the cryptocurrency from time to time or long-term. Moreover, the company will be one of the first to start accepting payment for its products in Bitcoin in the near future. 

According to Guy Hirsch, US managing director at eToro, this latest example of big companies buying crypto is further proof that smart money is still buying Bitcoin when others have started shedding their $BTC holdings. 

“Musk and Tesla move markets in a way few others can, and this may be the point where we look back and realize Bitcoin went mainstream,” he added. 

Is it enough for large companies to add liquidity to various cryptocurrencies to enable mass adoption of blockchain technology in general? 

While the ongoing wave of institutional investments in Bitcoin seems like a good starting point, this is most certainly just the beginning. 

The advantages of purchasing cryptocurrencies are obvious — greater choice afforded to companies and their consumers, independence, and opportunity in both parties’ finances. 

Blockchain’s open-source nature helps “eliminate the weak points of the modern banking system by bringing access directly to consumers,” states Claire Lovell, Associate Director of Product Management at Gemini. 

As a result, we are seeing a constant price increase in many cryptocurrencies accompanied by milder fluctuations which are encouraging masses to hop on the bandwagon with the hope that the train leads to the “Massive Gains” station. 

Nevertheless, with access to decentralized financial markets, institutional investment banking is reinventing itself. 

In time, this should significantly facilitate the mass adoption of blockchain as a platform where numerous innovative projects live and offer solutions to modern problems, such as securing identity in the digital world. 

After all, there is more to blockchain than just buying and selling cryptocurrencies. The further the blockchain technology is developed as a whole, the more it will become indispensable for both companies and their growing customer bases. 

And establishing crypto assets as a viable institutional investment opportunity is paving the way for accepting blockchain as a platform in general. 

Forward-thinking companies who keep up with the market requirements are dedicated to optimizing their processes by integrating new technologies like blockchain and thus ameliorating customer-facing product/service risks without compromising user experience. This disruptive movement couldn’t have been possible if not for the popularity of blockchain technology contributed to by large purchases of cryptocurrency.

For example, AIKON’s identity management solutions integrated with Algorand technology  — ORE ID and ORE Protocol — offer numerous advantages to companies invested in securing their user base identities:

  1. Backend operation optimization by moving to the blockchain
  2. Safeguarding user digital identity via tokenization
  3. No compromise on user experience.

With ORE ID, users can utilize their existing social logins and email addresses to access the blockchain and authorize transactions without leaving the app. That way, access to blockchain DApps is gained via the most popular OAuth providers — Google, Facebook, GitHub, LinkedIn, Twitch, and Twitter — with minimal information sharing. 

However, blockchain is not just “backup technology” for keeping identities safe — it is the future. And it is here.

By enabling businesses to transfer their infrastructure, assets, and processes to the blockchain on a large scale, we are one step closer to achieving our goal of having 100 million first-time blockchain users by 2025. 

And while it is ambitious, Team AIKON believes that users do not need to have a deep understanding of blockchain to access and use it. 

However, it’s largely recognized that institutional investment in Bitcoin and other blockchain projects is making the space more approachable to all potential future users. 

And we are here for it. 

So, no more waiting — contact AIKON now and catapult your business into the future! 

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About AIKON

AIKON, a San Francisco-based VC-backed firm, was founded in 2017 with the goal of enabling the digital asset economy and empowering users from all over the globe by securing their personal information via blockchain. 

AIKON has developed the Open Rights Exchange (ORE) protocols to manage access to digital rights and access, and has been enabling mainstream blockchain adoption with its ORE ID secure identity service. With ORE ID, AIKON aims to foster a new era of secure identities that protects users and their data, powered by the blockchain. Follow us on Twitter or connect with us on Telegram!

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