Bitcoin

Negative Bitcoin headlines concern speculators, not HODLers

The motivation and time horizon for getting started with Bitcoin (BTC) will ultimately determine whether investors are successful in this new asset class, according to cryptocurrency pioneer Mark Yusko.

On Friday, the CEO of Morgan Creek Capital Management commented on the recent wave of negative headlines on Bitcoin. In a number of Tweets, Yusko said financial institutions are concerned about the disruptive effects of bitcoin and will use all means to slow bitcoin’s adoption.

The normal reaction to the Bitcoin threat is “Building barriers to acceptance and innovation”, Yusko said, adding:

“When threatened, incumbents always turn to government to try and regulate new technologies to stop them.”

Negative Bitcoin headlines concern speculators, not HODLers
Negative Bitcoin headlines concern speculators, not HODLers

This has been the case lately “a losing strategy for centuries”, said.

In the meantime, speculators seeking short-term exposure will continue to influence the price of Bitcoin by reacting to the headlines. There has been no shortage of negative news for them in the past few days China Seizes $ 4.2 billion in Crypto Assets and Coinbase’s Brian Armstrong Predicts Potentially Harmful Regulations for Bitcoin.

However, he thinks so Investors with a long-term strategy are more likely to succeed as the basic bitcoin narrative reinforces:

“Investors are long-term value-minded owners and speculators are short-term price-minded owners.”

Bitcoin holders are known for their low time preference, which means they postpone instant gratification for long-term profit. In this case, “long-term profit” is a paradigm shift in society’s understanding of money.

Bitcoin holder or HODLers As they are popularly known, they seem to have strengthened their belief in the face of the recent uptrend in the market. An example: 61% of Bitcoin supply hasn’t moved in for over a year, despite BTC being profitable in over 99% of its history.

In terms of price, Bitcoin hit a high of $ 19,200 last week. There BTC’s market cap rose to $ 352 billion. a new all time high. The price of the asset is currently below $ 17,000 after a sharp correction on Thursday.

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