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Elaine Ou

Bitcoin Whales Are a Mixed Blessing

Institutional investors will help stabilize the price, but also remove the protective benefits of decentralization.

It only looks simple.

It only looks simple.

Photographer: Michael M. Santiago/Getty Images

No sooner did Treasury Secretary Janet Yellen warn about Bitcoin’s inefficiency early last week than the cryptocurrency prices tanked. They were already falling, yet, for some, the price movement was a demonstration of the exact volatility Yellen was criticizing.

For others, like Square and MicroStrategy Inc., it was an opportunity to buy the dip, with words of encouragement from Ark Investment Fund’s Cathie Wood, a Bitcoin bull.