He who laughs last laughs best – investment expert advises Bitcoin investors to be patient
Mark Yusko sees long-term Bitcoin HODLers as having a clear advantage over short-term speculators.
Intent and time horizon are the two key parameters that determine whether investors are successful or not in investing in Bitcoin (BTC). At least that is the opinion of crypto-pioneer Mark Yusko.
Yusko, who is the CEO of Morgan Creek Capital Management, made this statement yesterday, Friday, in connection with the recent waves of negative headlines about the crypto currency. In several tweets, the investment expert said that the Bitcoin Aussey System financial industry has good reason to resist the disruptive power of Bitcoin, so any means possible to prevent the adoption of the crypto currency would be welcome.
Accordingly, it would be only natural that the financial industry “creates hurdles for adoption and innovation,” Yusko said. And so on:
“When the old-established are threatened, they try to influence governments to slow down the adoption of new technologies through strict regulation.
However, this “would have turned out to be a bad strategy over and over again in the course of history”.
Speculators looking for quick profits and therefore investing in Bitcoin only for the short term can continue to influence the price of the crypto currency by reacting to negative headlines. They have had more than enough of that in the last few days, because while the Chinese government has confiscated $4.2 billion in crypto assets, the US threatens to introduce new regulations that could be very detrimental to the crypto industry.
Nonetheless, Yusko is convinced that investors with long-term intentions will ultimately be the ones who laugh last as Bitcoin’s intrinsic value-added becomes more and more prevalent. So the investment expert comes to a clear conclusion:
“Investors are long-term investors who bet on the added value, whereas speculators are short-term investors who focus on the price”.
Bitcoin investors are notorious for their low time preference, which means that they hope for long-term added value rather than making the fast mark. The “long-term added value” involves not only a significant increase in value, but rather a fundamental change in the monetary system.
This affinity of Bitcoin investors for holding is reflected in the name “HODLer”
This is derived from the English verb “to hold”, the misspelled word being intended. The sharp decline after the strong climb of the last few weeks has apparently only strengthened the Bitcoin HODLers’ conviction, as new data show that 61% of the amount of Bitcoin in circulation has not been moved for more than a year, although the chance of profit is currently higher than ever.
Last week Bitcoin was able to climb to a new annual high of over $19,200. As a result, the market capitalisation rose again to a new record high of 352 billion US dollars. After a sharp fall on Thursday, the share price was able to pull back to USD 17,700 at the time of going to press.