I think a lot of people need to change their perspective when it comes to watching this Bitcoin drop.
First of all, Bitcoin has never been a safer investment in its entire history. There was 70 billion in institutional investment last year. You’re not going to get 100x returns anymore but it isn’t going to zero like everyone thought a decade ago. That’s the trade off. So that brings me to the next point.
If in the next year or two Bitcoin went from 72k back to 120k, that’s about a 67% increase. For Bitcoin, that is almost expected by most people. More importantly is that you then compare that number to traditional markets. The S&P 500 averages around 10% annual returns long term, and historically it takes roughly 5 years to gain about that same 66% range. That’s considered steady, healthy growth that people trust and build retirement around.
When people say that volatility is an asset they mean in these times you get an opportunity to have 5 year gains in just 2 or 3. That is the cheat code. If that’s not enough you will likely get recked in the market. The smart money is buying now.
Posted by thebestname1234
4 Comments
I think you’re right
Bitcoin is still number one cryptocurrency on the market.
Temporary price drops wont affect anything.
That’s the technology of future.
Most of us know and agree with this. The non crypto/investing people will not buy now seeing it drop from $120k to 72k and lower.
But we all know this is a great buying opportunity
The only area I disagree, is when you said “you won’t get 100x”. It’s absolutely possible that you will get 100x. On a long enough timeframe, a $10 Milly BTC isn’t difficult to achieve. They’re going to print *a lot* of money. Bitcoin is still only held by a handful of institutions and maybe 1-2% of people hold a meaningful amount. As it gets more and more adopted, the price can go very high. Remember, fucking Fidelity has a price projection of a $1 Billion.
People have this idea that assets have caps. They just don’t. Repeat: assets do not have price caps.
Buy low sell high is a simple enough concept.. not sure why most people usually do the opposite.