And domestic encryption bigwigs, Mike (Mike Novogratz), Graz’s Jim Braye (Jim Breyer) and Tim Draper (Tim Draper) remain optimistic about these foreign billionaires seem to encryption currency long-term trend, even after the market value has shrunk nearly 85%, these investors still maintain positive growth the encrypted currency industry.
Estimated even Hu Haiquan can not help but ask: why?! Why are they? Why are these encryption investment bigwigs will make such a judgment? Why do they have such confidence in the encryption industry in the future? Why? Why?
Below, let star Jun (WeChat: o-daily) take a simple analysis.
In fact, the answer is actually very simple, everything is karma, crypto currency will also follow the rule of the economic cycle, experience of prosperity, recession, depression and recovery of the four stages.
In most cases, the “high profile” of individual investors and investment big coffee are always seemed able to handle emerging and high-risk assets (such as bitcoin and etheric Fang encryption currency) severe losses — why? Because they’re really rich. Even the eyes of ordinary people is a huge amount of money loss, in their view, but only to their own wealth and portfolio of a small part.
With the real estate and other traditional markets, even in the face of unexpected market crashes, or is there a long-term bear market conditions, the rich investment large coffee also has sufficient capacity to hold assets. But, maybe these people can have a lot of house rent.
But for ordinary retail investors, they need to quickly get the cash to support daily operations, other individual traders also need money to meet the usual expenses, they have no choice, when the bear comes, they can only sell most of their portfolio of risky assets. This is the main reason why in a bear market, retail investors often suffer heavy losses, because they cannot support 80% to 90% of the price decline, and ultimately be forced to liquidate their holdings of assets. In contrast, the billionaire investor and large institutional investors are often able to HOLD your portfolio, and to maintain daily operations.
So, you will have a “illusion”, thought that the historical performance of these high net worth individuals to bitcoin can always maintain a relatively positive attitude, but in fact they are only for more money than you.
In the past nine years period, bitcoin has experienced five “bubble – Reconstruction – rebound”, every time, bitcoin prices fell will reach 85%, and then again to the highest point in history. If according to the highest point of 19500 dollars, the price fell by about 82%, if the decline of 85% is around $2950.
Now look at the investment money market in the encryption of well-known Wall Street investors, most of them have experienced the rise and fall of the traditional stock market, so when faced with encryption currency bubble burst – rebuild – rebound cycle, these investments have a large coffee have more experience, is also much more calm — after all, unlike just admission, “too young too simple” retail investors.
This year, the bear market has proved a point, encryption money is not a “fashion”, it is gradually becoming an asset class, because the major financial institutions have been around crypto currency related business, as well as the encryption type self building infrastructure, such as the New York stock exchange, NASDAQ, and Intercontinental Exchange (ICE).
Billionaire venture capitalist Jim Braye also added that now go and you go to the best computer scientists are flocking to the block chain, so if you are not optimistic about the currency and the encryption block chain, does not seem to be wise, so in the long run, the encryption industry still very bright future. He said:
“So many excellent computer science doctoral, postdoctoral, deep learning in the block chain, they are full of interest in this new technology, you can’t see the prospect of the industry than the world’s best and brightest.”
Of course, we also need to answer some individual investors are most concerned about the issue of encryption currency market what time to recover from a bear market?
In the past five bitcoin major adjustment, the average need 67 weeks to recover, and a record high again. Remember the last time bitcoin prices soared to $19500 is what time? In fact, after a crash, bitcoin also spent about 67 weeks time, is also to the second quarter 2018 years to climb to the high price.
So, we should work together to figure out the next 67 weeks will come at what time?