by Trish Harris the original post was published on https://growyourbitcoin.co.uk/f/banks-can-now-hold-crypto-%E2%80%93-this-is-the-tipping-point
In the year 2000, Malcolm Gladwell wrote the now world-famous book ‘The Tipping Point: How Little Things Can Make a Big Difference.’
In it, he used a series of interesting stories to show how ideas and behaviours spread.
If you’re not familiar with the book, here’s its blurb:
“In this brilliant and original book, Malcolm Gladwell explains and analyses the ‘tipping point’, that magic moment when ideas, trends and social behaviour cross a threshold, tip and spread like wildfire. Taking a look behind the surface of many familiar occurrences in our everyday world, Gladwell explains the fascinating social dynamics that cause rapid change.”
So the “tipping point” is basically when an idea suddenly goes mainstream; or “goes viral”, as we’d say today. We have just hit the tipping point of mainstream cryptocurrency adoption.
This week, everything changed for crypto, and there is no doubt that this is the tipping point. This is the moment where investing in crypto will become as common as investing in stocks, shares and savings accounts.
The US government just declared that national banks can offer crypto custody services to their clients. So basically, it’s now legal for US banks to provide crypto custody services to the public.
You may be wondering why this is such a big deal. Well, it’s this event that’s just turned crypto into a mainstream investment that is as safe and easy to store as stocks and cash. What this means is, anyone will be able to walk into their bank and buy, sell, store and trade crypto. This is huge.
One of the stumbling blocks for BTC – and crypto in general – is that it is very technological, and therefore quite daunting for most people. If crypto is ever to reach true mainstream adoption, it needs to be as easy to invest in and as safe to store as stocks are today.
This is going to make crypto as easy to invest in as stocks
Most mainstream investors don’t have a clue about how the companies they invest in actually work, how their investment is put to use or what – if any – safeguards are in place to protect their investment. And they don’t need to.
Ask the average Amazon investor what percentage of Amazon’s revenue it spends on logistics and warehousing… or which computer system it uses to keep track of its orders… or what the total compensation of its directors is, and you’ll draw a blank.
They don’t need to know that. All they need to know is that it’s making money, is managed well, and is wiping the floor with its competitors… and that its share price has been on a tear recently.
If they want to invest in it, they just call up their broker, or log into their brokerage account, and buy Amazon shares. Their broker takes care of the rest.
Once banks begin offering crypto custody services, the same will be true of investing in crypto.
Anyone will be able to call up their bank, or log into their online account, and buy £500 of bitcoin. It will then just appear on their account, along with their other investments.
Once big traditional banks start offering their own custody services, we could see a rush to capture the market. That’s going to mean a lot of crypto trading going on behind the scenes, and likely some big price movements, too.
You might ask why would the banks provide a service and a product which, actually, goes against everything they stand for? Well, they know that BTC is here to stay and it is going to be big. The services they would offer will of course be provided for a (most likely) hefty fee, and if the banks are profiting by their customers holding crypto, it will be in their interests to promote it. And banks are experts when it comes to marketing new money products.
So, if this really does prove to be the tipping point, it’s going to be a very interesting few years for all of crypto.