John McAfee “Gets Real” About Bitcoin’s Price Decline, Remains Bullish

Francisco Memoria
  • Eccentric cybersecurity pioneer John McAfee "got real" about Bitcoin's price decline
  • Notably he still remains bullish, as he pointed out its still up 120% when compared to last year.

Eccentric cybersecurity pioneer and Bitcoin bull John McAfee recently “got real” about the flagship cryptocurrency’s price decline, by pointing out that one year ago today the cryptocurrency wasn’t trading anywhere close its current near $6,000 price.

On Twitter, the cryptocurrency advocate who recently claimed he was spiked and left for dead, told his over 830,000 followers that one year ago Bitcoin was trading at $2,560, and that at the time of his tweet it was at $6,000.

At press time, the cryptocurrency dropped below its $6,000 support, and is currently trading at $5,870. Taking into account its price from a year ago, it’s still a 120 percent increase. Per McAfee, his followers should “stop the short term thinking.”

It’s worth noting that in May John McAfee boldly predicted Bitcoin would surpass $15,000 this month. Per his words, he used an algorithm he claimed had never been wrong, that also predicted EOS would hit $32 by the end of July. Bitcoin Private (BTCP), a cryptocurrency he promoted on social media, was also set to hit $200 by the end of July.

At press time, EOS is trading at $7.17 after falling nearly 14 percent in the last 24-hour period, partly because of the EOS Core Arbitration Forum’s (ECAF) move to order the network’s 21 block producers to freeze 27 accounts.

Bitcoin Private (BTCP) is trading at $11.76 after barely seeing its price move in the last 24 hours. Hitting $200 by the end of July would mean the cryptocurrency would still surge over 1,600 percent in little over a month.

Notably John McAfee’s boldest price prediction saw him bet Bitcoin will hit $1 million by 2020. According to tracking websites the cryptocurrency was on track until a few months ago, and is now down by 49.72 percent as the price would need to be over $11,700 to be on target.

Recently the cybersecurity pioneer revealed he was going to stop promoting initial coin offerings (ICOs) after the US Securities and Exchange Commission (SEC) allegedly threatened him. Shortly after making this announcement, he partnered up with a relatively unknown company named Bitfi to promote a “truly unhackable” cryptocurrency hardware wallet.

Millennials Prefer to Invest in Bitcoin Over Netflix, Microsoft, or Alibaba: Report

Francisco Memoria

A report published by brokerage giant Charles Schwab has shown that millennials, currently aged 25-39, prefer to invest in products tied to bitcoin over equity in some of the world’s largest companies.

The report, published this week, showed that millennials have a higher holding in Grayscale’s Bitcoin Trust (GBTC) fund than in Netflix, Warren Buffet’s Berkshire Hathaway, Microsoft, and Alibaba. The report includes data collected from roughly 142,000 retirement plan participants with balances between $5,000 and $10 million. Data is extracted quarterly on all accounts.

Among the top 10 equity holdings of millennials, GBTC came in fourth place with 1.84%, falling behind only Amazon’s 7.87%, Apple’s 6.18%, Tesla’s 3.22%, and Facebook’s 3.03%.

Invesment preferences per gennerationSource: Charles Schwab

The GBTC is a product launched in 2013 by Grayscale, a Digital Currency Group subsidiary. It was initially only available as a private placement for accredited investors, but in 2015 it received approval to be offered as publicly traded shares. It lets investors gain exposure to BTC without having to manage private keys.

While GBTC is a popular holding among millennials, the report also showed it didn’t make it in the top 10 equity holdings of Gen X (aged 40-54) and baby boomers (aged 55-75), highlighting generational differences in investment preferences. These two generations’ top three holdings were Apple, Amazon, and Warren Buffet’s Berkshire Hathaway.

The average account balance for all participants in Q3 of this year was over $276,000. While baby boomers’ average balance was $394,000, the average balance of Gen X retirement plan holders was $213,000. Millennials’ average balance was $68,750.

Millennials also allocated a larger percentage of their portfolios to exchange-traded funds (ETFs) at 24%, than did Gen X at 20% and baby boomers at 17%.They also hold more cash than other generations’ investors.

Iso far, every attempt to list and trade shares of a Bitcoin ETF has been rejected by the U.S. Securities and Exchange Commission (SEC), with one of the latest rejections hitting the Bitwise Bitcoin ETF Trust.

The SEC’s disapproval order pointed out the disapproval shouldn’t be taken to mean that Bitcoin or blockchain technology have no merit as “an innovation or an investment.” It noted the SEC disapproved the Bitcoin ETF over concerns regarding fraudulent or manipulative acts in the cryptocurrency market.

It’s worth pointing out previous studies have shown millennials have been investing in cryptocurrencies. An eToro survey from earlier this year showed over 70% of millennials were looking to invest in crypto offered by institutions, while research from British legal firm Michelmores LLP showed 20% of wealthy millennials invested in cryptocurrencies like bitcoin.

Featured image via Unsplash.