Mike Novogratz (hedge fund legend), Jim (Breyer Facebook Tim Draper (early investors) and Dfj (DFJ) founder of Silicon Valley venture capital investment fund, the godfather) is the traditional financial market at the same time, the billionaire investor, or long-term investors encryption famous money, they have been optimistic about the long-term trend of encryption currency the.
These investors can continue to maintain a positive attitude on the growth of the industry after industry value fell 85% crypto currency?
On the market cycle
To a great extent, well-known individual investors can handle the serious loss of emerging asset classes and risky assets, such as bitcoin, Ethernet square and other encryption currency, because they account for only a small part of its wealth and investment portfolio.
With the real estate and other traditional markets, wealthy investors have the ability to hold assets and real estate, even in a market crash or accident appeared in the case of the bear market.
However, ordinary investors and individual traders need fast cash to pay for daily operations and spending the majority held in addition to the sale of its portfolio of risky assets, but.
In the bear market, retail traders usually suffer great losses, because they cannot afford the money price fell 80% to 90% of the situation, therefore forced to liquidate. In contrast, the billionaire investor and large institutions can hold and maintain their own luxury portfolio.
Perhaps, the history of bitcoin is a bigger factor for high net worth individuals for long-term growth in money markets remained relatively encrypted positive attitude.
In the past 9 years, bitcoin has experienced 5 times after the bubble rebound cycle, the dominant currency in the encryption slump fell by an average of about 85%, after the rebound to an all-time high.
The value of bitcoin fell from $19 thousand and 500 to about 82%, and if the fall 85%, then bitcoin will be in about $2950.
In Wall Street, the most famous investors currently involved in encryption currency markets have experienced many cycles, such as encryption currency bubble collapse – rebound mode, in which a large part of investors, this period doesn’t seem typical.
This year the market will prove to investors that the encryption currency as an asset class is not a fad, because related crypto currency enterprises and major financial institutions are continuing to build and strengthen the infrastructure around the asset class, the New York stock exchange, the NASDAQ and the Intercontinental Exchange efforts is one example.
Billionaire venture capitalist Jim Braye (Jim Breyer) added that the world’s best computer scientists are flocking to the block chain, short the industry is not wise: “many of the best computer scientists, deep learning doctoral and PhD in the study after the blockchain, because they block chain what it means very interested in. You don’t want to be the world’s best and brightest people to gamble.
The question is, what time will the market recovery?
On average, bitcoin took 67 weeks to recover from the past 5 major adjustments, and a record high. 19 thousand and 500 dollars for sixty-seventh weeks to reach from bitcoin, will be the second quarter of 2018.
The past is no guarantee of future performance of encryption currency, but it provides a clue that the market is how to behave, and how to experience the intense selling cycle and survive.