Nicolas Economou / NurPhoto via Getty Images
According to an early adopter, the ultimate time to buy bitcoin is when no one is talking about it.
“The best time to buy Bitcoin is when there is blood on the streets and everyone is panicking and nobody is talking about it,” the investor, who prefers to remain anonymous, told insiders in a telephone interview from Manila, Philippines.
In 2013, he initially bought 2.5 bitcoins from a seller named “Mang Sweeney” on LocalBitcoins.com when the cryptocurrency was trading at $ 100 per coin. “Mang” means a sign of respect in the local language in the Philippines.
At this point, the platform enabled face-to-face meetings, after which the seller transferred the cryptocurrency on-site using his laptop or mobile phone. Mang Sweeney was already trading in Bitcoin when it was worth $ 10 a coin, as speculative buying and selling was popular even then, according to the anonymous buyer.
Nevertheless, online interest in Bitcoin from 2013 to 2014 was nowhere near the current level. The graph below shows how Google searches for “Bitcoin” in the Philippines has grown steadily since that period, peaking in late 2017 when the price soared to a record high. It went down during the course of 2018 but came back last year.
Continue reading: An engineer who has become a global macro investor breaks down why Bitcoin is so volatile – and shares three reasons she remains bullish about digital wealth
“People forget that this is not the first bubble,” said the investor. “Until people understand the technology, it will always be a speculative advantage.”
The early bitcoin buyer said he does not advise friends and family to trade the token if it is in the bubble area. “If no one wants to touch it, you buy it. Not when people talk about it,” he said.
Bitcoin’s deflationary nature advises it against using it as real currency. He lost 16 bitcoins in the Japanese cryptocurrency exchange. Gox, one of the few exchanges that early adopters could trade on. It was abruptly closed in 2014 after its collapse after hackers apparently raided the stock market. Almost 850,000 bitcoins from investors were lost.
Continue reading: On this day, the trader just made the biggest trade of his career and took advantage of the momentum surrounding Bitcoin. Here’s how he did it – and his 4 step strategy for identifying speculative topics for trading.
“Financiers” who, according to him, are talking about $ 100,000-150,000 are actually discharging their Bitcoin investments bit by bit while saying that they will reach a certain price as some of them have already amassed large amounts.
“The only reason I would tell people to just bother with it is that it is important to understand how it works and how to take care of it. If you are dealing with passwords or a simple two factor – Not familiar with authentication, it’s you. People are going to steal your bitcoin, “he warned.
However, there are voices warning investors that Bitcoin is starting to look like digital gold.
“For Bitcoin to be included in a portfolio and become an investable asset similar to gold, the asset would have to improve the risk-return profile of that portfolio,” said Gerald Moser, chief market strategist at Barclays Private Bank. “That seems like a big job.”
While it is nearly impossible to forecast an expected return on Bitcoin, its volatility makes the asset almost “non-investable” from a portfolio perspective, he said.
Separately, Treasury candidate Janet Yellen suggested on Tuesday that lawmakers should restrict the use of cryptocurrencies as they are used “primarily for illegal funding.”
Continue reading: GOLDMAN SACHS: Those 22 stocks have still not rallied to pre-pandemic levels – and, given higher earnings, will explode in 2021 when the economy recovers