Prominent Bitcoin Investors Exits Market
Having spent 17 years as a public figure in the “blogosphere” - via GATA (a highly subscribed finance-related blog) and Torrey Hills Capital’s Bull Tweets (a blog for a leading investment relations firm), Hoffman remarked:
I’m WAY too old to continue engaging with bad actors within my own community – like Rickards and Armstrong within the ‘gold community,’ and Tone Vays and others in Bitcoin. Not only don’t I WISH to fight such wars anymore – which bring me no profits, but plenty of angst; but NEED to anymore, either…and at 48 years old with a family to support, I don’t see the upside to ‘fighting to the death’ for gold, Bitcoin, or any sound money cause.
Thus, when the Hoffman Line broke last week, I sold the vast majority of my Bitcoin. I have no idea if this will turn out to be a brilliant maneuver or a horrible mistake – but given the risk to the financial security I had worked so hard for; for a cause that may or may not pay out - late in my investment career, when the stakes are highest; it was the obvious choice to make. I have no regrets at all – and for the first time in years, am not living in fear of what Bitcoin – and before it, Precious Metals – will do at any given moment.
Revising End-Of-Year Bitcoin Price Prediction
Indeed, the digital currency market has proven to be completely unpredictable. As CryptoGlobe reported recently, prominent bitcoin bull, Thomas Lee, who is the founder of Fundstrat Global Advisors, has now cut his year-end BTC price prediction to $15,000.
Lee had notably maintained his $25,000 end-of-2018 bitcoin price prediction throughout the extended bear market this year. However, Lee explained that his revised estimate for BTC price is based on the flagship cryptocurrency’s “break-even” point. He noted that Fundstrat’s research team used data from Bitmain’s S9 mining machine, which indicated that bitcoin’s break-even point is around $7,000. This is down from the previous $8,000.
Lee’s research team then used the $7,000 figure and calculated that $15,000 is bitcoin’s “fair value” - which is approximately 2.2 times its break-even price. Although Lee is an experienced financial markets analyst, his predictions regarding bitcoin’s future price have often been wrong. Moreover, many other crypto industry participants have made bad calls.
Only Invest What "You Can Afford To Lose"
As covered, Meltem Demirors, the chief strategy officer at CoinShares, a crypto treasury management firm, had recommended that people should continue to invest in bitcoin and other major cryptocurrencies - when cryptoasset prices were at their all-time highs (in December of 2017).
Demirors has now been accused of ignoring the advice of legendary Yale economist and Nobel Laureate, Robert Schiller, who had warned at that time that the crypto market was in a huge bubble that was ready to burst.
As CryptoGlobe reported, Kendrick Nguyen, the founder of crowdfunding platform, Republic, has recommended investing only small amounts, or only as much as people “can afford to lose.” Moreover, early bitcoin adopter, Charlie Shrem, has suggested the same as he said crypto-related technology is in its early stages of development and the focus at this point should be on learning and experimenting with digital currencies, not so much on how to profit from investing in them.