Bitcoin exclusively reserved for the rich? The “bank of banks” (BIS) wants your good

“Leave Bitcoin to the pros! » – If the bankers cordially hate Bitcoin (BTC) and decentralized cryptocurrencies, they love to talk about it, very regularly (and badly, of course). After the European Central Bank (ECB) recently, it is now the “bank of banks” that attacks small crypto investors. Indeed, the Bank for International Settlements (BIS) has just dedicated an entire report to the digital asset market.


BIS discovers that “whales” make the market (and that the water is wet?)

There Bank for International Settlements frequently explains to us that we must give up the vulgar prototypes that are (in his eyes) Bitcoin and cryptocurrencies. On the other hand, it is necessary plunder the technologiesto promote the advent of central bank digital currencies (MNBC).

On February 20, 2023, the BIS devoted its entire last newsletter (N°69) on the crypto-asset market. If we had to sum it up, we could say – almost without exaggeration – that the supranational bank spends 8 pages on mock small crypto-investors, who would be mostly in lossfor not having invested or sold “at the right time”.

“(…) Large investors probably sold to the detriment of small holders. Data Reveals Big Wallet Owners, ‘Whales’, Reduced Their Bitcoin Holdings in the Days After the Shock Episodes [ndlr : Terra (LUNA) et FTX]. (…) Small holders (“krill”), have increased their bitcoin holdings. The price action suggests that the large investors were able to sell their assets to the small ones before the sharp drop in prices. »

A whale swims in a sea of ​​bitcoin while retail investors mourn the loss of their funds, is the picture Bank of Banks portrays in its latest cryptocurrency report.
According to the BIS, Bitcoin (BTC) is only successful for large investors

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If the “revelation” of the Bank for International Settlements about the fact that whales make the market has not already stuck with you (we too can laugh), wait until you see his methodology – with wet finger – to assert that individuals are “mostly at a loss” on their Bitcoin investment.

“In order to determine the performance of retail investors (…) we analyze the number of users downloading apps from crypto exchanges for different bitcoin prices. (…) This data shows that almost three quarters of users downloaded a crypto exchange application when the price of bitcoin was above $20,000. (…) Assuming users invested in Bitcoin the same day they downloaded the app, we assess the size of the loss on their initial investment against a given price level. »

A (biased?) methodological choice which thus makes it possible to say that individuals would have “probably lost money” on their crypto investments, according to BIS. And in addition, it makes it possible to justify “options” for circumscribe the digital asset sector:

  • “Prohibition of specific crypto activities” ;
  • “cryptocurrency containment” to avoid any systemic link with traditional financial markets;
  • “regulation of the sector”.

Or, “a combination” of the measures mentioned above. History that only investors “sophisticated” Or “qualified” (to understand : very rich) can access the crypto-asset market alongside institutions? AT hong kongit’s already the case : $100 million “tokenized green bonds” on blockchain could not be acquired only by banks.

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