According to cryptocurrency pioneer Mark Yusko, the trigger and time horizon for entering Bitcoin (BTC) will ultimately determine whether investors will succeed in this new asset class.
On Friday, Morgan Creek Capital Management’s CEO commented on the recent wave of negative Bitcoin news. In a series of tweets, Yousco said that financial institutions are genuinely concerned about the devastating impact of Bitcoin and will use the means at their disposal to slow down decisions.
Yousco said the natural response to the Bitcoin threat is to “create barriers to adoption and innovation,” adding:
“In the event of a threat, the authorities always turn to the government, trying to gradually introduce new technologies through cumbersome regulations.”
In the end, he said, this strategy was “lost for centuries.”
Meanwhile, speculators looking for short-term exposure will continue to influence Bitcoin’s price by responding to the headlines. They had no shortage of negative news in recent days: China confiscated $ 4.2 billion in cryptocurrencies, and Coinbase’s Brian Armstrong predicts dangerous Bitcoin bases.
However, he believes that investors with a longer time horizon are more likely to succeed as Bitcoin’s core message is reinforced:
“Investors are the holders of long-term contracts with a focus on value, and speculators are the owners of the short term with an emphasis on price.”
Bitcoin holders are known for their low timing, which means they bring instant gratification in the long run. In this case, the “long-term benefit” is a paradigm shift in the way society understands money.
Bitcoin holders, or HODLers as they are called, appear to have cemented their convictions in the midst of the recent market crash. Example: 61% of Bitcoin offers weren’t promoted within a year, despite the fact that Bitcoin has been profitable for more than 99% of history.
In terms of pricing, Bitcoin peaked north at $ 19,200 last week. In the process, BTC balloons increased to $ 352 billion; A new record. The asset is currently trading below $ 17,000 after a strong correction on Thursday.