Home Sports I already earned 158% on bitcoins. That’s why I keep holding

I already earned 158% on bitcoins. That’s why I keep holding


Image source: Getty Images

This article was originally published on Fool.com. All figures are given in US dollars unless otherwise specified.

I bought the first one Bitcoin (CRYPTO: BTC) On April 24, 2020, when the price of one token was approximately $7,509. This means that my position brought a profitability of 158% (as of October 13) for about two and a half years. That’s impressive from any angle, and this number far outstrips popular promotions like an apple and Costco Wholesale.

Even with such a great investment return, especially compared to S&P 500a total return of 34% over the same period, I have no intention of selling mine Bitcoin holdings in the near future. That’s why.

Bad times for risky assets

After reaching the historic high of almost $ 69,000 per token last November, Bitcoin fell 72%. This follows the overall negative trajectory of the overall stock market.

Inflation began to grow more than a year ago, and it does not stop. This forced the Federal Reserve to raise interest rates to slow price growth throughout the US economy. Investors have abandoned risky assets in favor of safer, and this shift caused damage to bitcoins and them cryptocurrency the market as a whole.

Tightening liquidityCombined with the mitigation of the economic environment, can pave the way for A recession in the near future. So this could mean even more pressure on Bitcoin for the foreseeable future.

Perhaps in hindsight I would have looked smart if I had left my position in Bitcoin at the peak last November, but it’s hard to time the market correctly on a consistent basis or pinpoint an exact top. And the 158% profit on paper right now can encourage you to sell and take a profit. But this is not my approach.

Maintain a long-term mindset

Despite the falling price, Bitcoin was still generating incredible returns of almost 14,000% since spring 2013. And to be clear, I’m still very bullish on the world’s most valuable cryptocurrency for the next decade. This is why I remain a holder.

A growing number of market participants view Bitcoin as a legitimate store of value, the equivalent of digital gold. But Bitcoin is more divisible, useful and portable than gold. And these key characteristics can push cryptocurrency development market capitalization It is $ 371 billion, which brings it closer to the total value of gold in $ 12.5 trillion. My argument is supported by the growing familiarity and appreciation of the younger generation for all things digital, and this trend will only increase.

Large corporations like Block and Micro strategyallocated parts of their own balances in bitcoins. And big institutional investors are getting in, too. Ark Invest, an investment company headed by Cathy Wood, is very bullish on Bitcoin. In addition, Coinbase recently signed a partnership with BlackRock, providing customers with huge asset managers easy access to bitcoins. A growing investor demandEspecially for a digital scarce asset, like bitcoin, helps maintain a higher price over time.

I know the way to the broader adoption of bitcoins will be full of extreme action volatility, as it was in the past. But as long as I maintain a very long-term time horizon, as I do with my entire portfolio, I have no doubt that I will be able to maintain my conviction and remain a bitcoin holder.

This article was originally published on Fool.com. All figures are given in US dollars unless otherwise specified.


Previous articleAnthony Albanese says ‘no question’ flood damage to farms means higher food prices | Australia’s economy
Next articleDiamonds struck by Netball Australia amid Hancock Prospecting sponsor saga | Netball