Wednesday, December 8

Bitcoin: a lot of rise, little profitability


With bitcoin it can happen as with the mythical fondo Magellan de Fidelity, managed in the 1980s by Peter Lynch, who became a Wall Street legend.

During the more than 13 years he was in charge of the fund, Lynch achieved an annualized return of 30 percent, an impressive percentage, but one that was not enjoyed by a large part of the investors who entered the fund, who ended up with losses.

The reason was that most participants entered when the fund was at a fairly high level. If a correction came, they lost their nerve and did not respect the long-term time horizon that should govern an investment and sold in full decline, without waiting for a recovery that always came.


Few investors acknowledge having won

Something similar is happening with bitcoin. Few investors acknowledge having won, despite the fact that the cryptocurrency has been hovering around the $ 70,000 barrier this week.

Avalanche of investors have entered with the aim of obtaining large profits in a short period of time. Many of them without the necessary knowledge to face an investment of this dimension.

And although it is true that the rise of bitcoin is spectacular, its cuts have also been. For example, those who on October 25 entered the bitcoin at $ 54,000 they found that two days later it fell to $ 50,000. $ 4,000 erased at a stroke.

Nerves of steel and patience with falls

You have to have nerves of steel and a lot of patience to withstand so much pressure, declines as vertical as those that bitcoin has started.

In this scenario, the investor usually gets into the worst, in that he will continue to go down to unbearable limits, and prefers to jump off the ship and save what is left of the shipwreck.

What was initially presented as a very profitable investment, the first setback ended in disappointment.

But what bitcoin has made clear in these years is that in the long term it is reliable. Despite the criticism it has received, the doubts it has generated, it has always taken flight after the crashes.

The hardest may have been through and is close to $ 70,000. Those who recently announced that it was very possible that will reach $ 100,000 they were not wrong.

Tim Cook also invests in cryptocurrencies

And now you just got the backing of Tim Cook, the CEO of Apple, which has acknowledged that it invests in cryptocurrencies, albeit in a personal capacity. And he argues that it is reasonable to have these assets in a diversified portfolio.

After the approval of the ETF on bitcoin, if the big CEOs of Wall Street admit, little by little, to be invested in crypto assets, the path towards $ 100,000 can be cleared.



www.finanzas.com

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