Mark Yusko sees long-term Bitcoin HODLers clearly at an advantage over short-term speculators.
Intent and time horizon are the two key parameters that determine whether or not investors will succeed in their Bitcoin ( BTC ) investment .
At least that’s what crypto pioneer Mark Yusko thinks
Yusko, who is the executive director of asset management company Morgan Creek Capital Management, made this statement yesterday, Friday, in the context of the recent waves of negative headlines about the cryptocurrency. In several tweets , the investment expert says that the financial industry has good reason to defend itself against the disruptive power of Bitcoin, which is why every means is right to prevent the adoption of the crypto currency.
Accordingly, it would be only natural for the financial industry to “create barriers to adoption and innovation,” says Yusko. And further:
„When the long-time residents are threatened, they try to influence governments to slow down the adoption of new technologies through strict regulation.“
However, this has repeatedly turned out to be a bad strategy throughout history
Speculators who are out for a quick profit and therefore only invest in Bitcoin for a short time can continue to influence the price of the crypto currency by reacting to negative headlines. They have had more than enough of that in the last few days, because while the Chinese government has confiscated US $ 4.2 billion in crypto assets , new regulations are looming in the US that could be very detrimental to the crypto industry.
Nonetheless, Yusko is convinced that investors with long-term intentions will ultimately be the ones who laugh last as the intrinsic value of Bitcoin continues to prevail. This is how the investment expert comes to a clear classification:
„Investors are long-term investors who focus on added value, whereas speculators are short-term investors who orientate themselves on the price.“
Bitcoin investors are notorious for their low time preference , which means they are hoping for long-term value instead of making the quick buck. The „long-term added value“ includes not only a considerable increase in value, but rather a fundamental change in the monetary system.
This affinity of Bitcoin investors for holding is reflected in the term „HODLer“. This is derived from the English verb „to hold“, whereby the wrong spelling of the word is intentional. The sharp decline after the strong climb in recent weeks has apparently only strengthened the Bitcoin HODLers in their conviction, because new data show that 61% of the amount of Bitcoin in circulation has not been moved for more than a year, although the chance of profit is currently is as high as rarely.
In the past week, Bitcoin climbed to a new annual high of over 19,200 US dollars. As a result, market capitalization rose to a new record high of $ 352 billion. After crashing violently on Thursday, the price was able to pull back to $ 17,700 at the time of going to press.