'Buy Bitcoin While Nobody Cares’ Says Chinese Crypto Billionaire

Omar Faridi

Zhao Dong, a Chinese crypto and blockchain influencer and prominent bitcoin (BTC) over-the-counter (OTC) trader, has said that it’s currently a good time to buy bitcoin because “nobody cares.”

Dong’s encouraging statements regarding bitcoin, the flagship cryptocurrency, were posted to a WeChat group, a very popular and widely-used social media platform in China. The Chinese billionaire noted (on February 11th, 2019):

The people who [are currently] paying attention to bitcoin are obviously [a lot fewer] than the [number of interested investors during the] bull market, and ... naturally … the prices [are] low right now.

He added that it would be wise to acquire and “hold as much [bitcoin] as possible [while] nobody cares.” When questioned about what he thinks regarding the various trends and developments in the crypto industry, Dong remarked: 

For 2018, everyone should just try to have a good winter. 2020 [will] bring the [crypto] spring … with ‘summer’ [or the digital asset bull market] not expected until 2021.

Tim Draper Predicts $250,000 Bitcoin Price, $80 Trillion Crypto Market Cap

In November 2018, Dong had predicted that the bitcoin price will surge to $50,000 by 2021 (on microblogging social media platform, Weibo). Last year in November, Tim Draper, another prominent billionaire crypto investor and venture capitalist, also shared his bullish views about bitcoin. Draper had predicted that (during 2018) that the bitcoin price would skyrocket to $250,000 by 2022.

Draper’s comments came during a panel discussion hosted by Fortune’s senior writer, Jen Wieczner. At that time, Draper had been asked to confirm whether he was serious about his bitcoin price prediction. The Harvard and Stanford graduate confidently stated:

Believe it, it’s going to happen – they’re going to think you’re crazy but believe it, it’s happening, it’s going to be awesome!

In previous interviews, Draper has said that the market capitalization of all cryptocurrencies will hit $80 trillion. Similar to the way in which other crypto analysts have compared the rise of the internet to the growth and adoption of digital assets, Draper believes the market value of cryptocurrencies will be in the trillions of dollars within the next 10 to 15 years.

Institutions Not Confident About Cryptocurrencies

Notably, individual investors appear to be more confident than institutions when investing in bitcoin and other cryptocurrencies. Giant Wall Street investment bank, Goldman Sachs, which manages over $900 billion in total assets, had warned last year that cryptoassets would “not retain” their value. The New York-based financial institution had argued in an extensive report that cryptocurrencies could not function effectively as money.

More recently, JPMorgan Chase, the largest bank in the US and the sixth largest overall (in the world), had released a report in which it claimed that cryptocurrencies were not being accepted as payment by major retailers. Analysts at JPMorgan had also cautioned that the bitcoin price was unstable and could potentially drop further to around $1,260.

JPMorgan had argued that even during times of economic uncertainty, there were far better investment options than cryptoassets. Analysts at JPMorgan wrote: 

Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging.

Morgan Creek Digital's Anthony Pompliano Explains Why He Is So Bullish on Bitcoin

Siamak Masnavi

On Tuesday (February 25), Anthony Pompliano (aka "Pomp"), a co-founder of crypto-focused asset management firm Morgan Creek Digital Assets, gave an interview -- to CNN's Julia Chatterley -- during which he extolled the virtues of Bitcoin.

Pomp focused on two main aspects of Bitcoin:

1. Bitcoin's Proof-of-Work (PoW) Consensus Mechanism and Its Energy Costs

He told Chatterley that Bitcoin is "the most seure computing network" in the world, and "it is going to take electricity or power consumption in order to power that security."

However, he said we don't need to get too alarmed by this since Bitcoin miners are "financially incentivized" to "find the cheapest power sources" because "that's how they make money."

Then, he pointed out that the cheapest form of energy is renewable energy, and so that is what they will try to use to power their mining hardware. In fact, he said that based on the studies he has seen, 60 to 80 percent of the energy being used is renewable.

2. Bitcoin's Store of Value Use Case 

"I think that store of value is really important. You have to have store value before you can have medium of exchange. 

"The store of value comes down to two things. One is security -- it can't disappear, it can't be hacked, etc.; and Bitcoin being the most secure computing network in the world, it is very secure...

"When it comes to price, what you want to see is, over long periods of time, either you're preserving your wealth, so the price stays flat, or it continues to increase.

"The monetary policy of Bitcoin relies on one thing: supply and demand economics -- artificially capped supply, demand increases, price will go up in U.S. dollar terms. And so, again, if you zoom out, over last decade, it's the best performing asset, over the last 12 months, up 150%, in the last you know what six weeks or so, it's up 30% or so.

"It's continuing to do exactly what it's kind of built to do. Now, there's high volatility on an intraday basis... but again people who put their wealth... in Bitcoin have been rewarded very well with this store of wealth thesis. And so we tend to think that the non-correlation with traditional assets will continue to be a valuable kind of aspect of Bitcoin."

Other Bitcoin-Related Topics

Pomp also responded to legendary billionaire investor Warren Buffett's most recent criticisms of Bitcoin by saying that although Buffett is "one of the best investors of all time," when it comes to technology, there are "better people to listen to." 

Finally, with regard to central bank digital currencies (CBDCs), here is what he had to say:

"These central back digital currencies are all coming, and really what I think people need to understand is all of the central back digital currencies are simply taking the existing monetary policy and changing the technology form factor.

"What Bitcoin does is it actually is a different monetary policy. It's not a fiat inflationary type model, and so ultimately we're going to have as a competition of currencies, but it's not going to be a competition on technology...

"We're going to have a competition of monetary policy... We believe that the Bitcoin monetary policy is superior to central bank monetary policies, and ultimately Bitcoin will be the winner, and will be the next global reserve currency."