Volatility and "tops" are short-term. Hodling is long-term. I think that the bitcoins you hold now with be worth more in the future regardless of tops and volatility.
To your point, I believe that Bitcoin is heading into another bubble. Who knows where it will land on the other side, but I guarantee that there will be a lot of tears.
Topic: Institutional hodling and BTC being a speculative asset - page 2. (Read 245 times)
Hi.
Nowadays everyone is talking about the institutions getting into the game and how this is going to turn BTC into a serious asset, not a speculative one because they will hold it for a long time thus decreasing volatility.
But hodling is a clearly inferior strategy especially if an asset is volatile. I get that just hodling worked for practitioners and they got stupid returns (I'm a small time investor myself) but it was possible because BTC is a "new paradigm" asset that was worth peanuts in the "early days" (whenever that was for you) and just holding onto coins ignoring ups and downs still gave people fortunes.
Real smart strategy is to buy and low sell high obviously, and if an entity has $50M to dump into BTC, they can afford a guy who will watch the market and sell some if the price goes down to buy later at a lower price. Just because they transferred their chunk from coinbase to an unknown wallet, doesn't mean they can't transfer it back.
At some point this bull market is going to top, and there will be selling. Institutions are more calculated than retail, but no one wants to be last when a selloff happens, no matter if you're big or small. So if we get to let's say $200K and fall from 50% there, BTC will still be a speculative asset, because all those institutions who poured in at $110-200K will not be in profit and if they keep their stash their hope will be price appreciation in the future (speculation).
I guess if some biblical super cycle occurs and BTC eats gold and other "safe" investments in one go it will become the main "store of value" game in town and not a speculative asset anymore. But that seems to be too optimistic for now, although who knows.
Anyway, what do you think about this institutional investor thing?
Nowadays everyone is talking about the institutions getting into the game and how this is going to turn BTC into a serious asset, not a speculative one because they will hold it for a long time thus decreasing volatility.
But hodling is a clearly inferior strategy especially if an asset is volatile. I get that just hodling worked for practitioners and they got stupid returns (I'm a small time investor myself) but it was possible because BTC is a "new paradigm" asset that was worth peanuts in the "early days" (whenever that was for you) and just holding onto coins ignoring ups and downs still gave people fortunes.
Real smart strategy is to buy and low sell high obviously, and if an entity has $50M to dump into BTC, they can afford a guy who will watch the market and sell some if the price goes down to buy later at a lower price. Just because they transferred their chunk from coinbase to an unknown wallet, doesn't mean they can't transfer it back.
At some point this bull market is going to top, and there will be selling. Institutions are more calculated than retail, but no one wants to be last when a selloff happens, no matter if you're big or small. So if we get to let's say $200K and fall from 50% there, BTC will still be a speculative asset, because all those institutions who poured in at $110-200K will not be in profit and if they keep their stash their hope will be price appreciation in the future (speculation).
I guess if some biblical super cycle occurs and BTC eats gold and other "safe" investments in one go it will become the main "store of value" game in town and not a speculative asset anymore. But that seems to be too optimistic for now, although who knows.
Anyway, what do you think about this institutional investor thing?
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