Many long-time holders (or HODLers) of Bitcoin often say that the daily price of Bitcoin does not matter, but is this claim just based on blind faith in the potential for this asset to change the world or is there any actual data backing it up?
Below is the all-time BTC-USD price chart from CryptoCompare:
On 26 September 2019, when Bitcoin was trading at around $8,100, Mark Yusko, the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management, was a guest on CNBC’s post-market show “Fast Money”.
In a segment titled “Bet on Bitcoin?”, Yusko was told by host Melissa Lee about the recent drop in the price of Bitcoin to almost the $8,000 level.
“Buy it. Buy it every day.”
Lee was not happy with this response:
“Regardless of the drop, if I said to you bitcoin had drop to $5,000, you’d say ‘buy it’.”
“Buy it. Because — here’s the thing — the daily price of Bitcoin doesn’t matter.
“It’s been alive for 10 years. In every year, other than one 2015, it’s made a higher low. The market cap has grown every single year. Every fundamental indicator of Bitcoin — usage, wallets, block size, transaction size, number of transactions,… hash rate — [is] making new highs.
“All of the indicators of the network and the network value are rising.
“The price of any asset fluctuates.
“Let’s take Amazon. Amazon has been a public company for 20 years. In every year, including this year… the average peak to trough [is] -31%, twice -90%. What was the right time to sell? Never! Who’s owned it since the IPO to today? Jeff and his mom and dad.”
On Friday (May 1), crypto influencer Heido Chakos, who is the host of the “Crypto Tips” YouTube channel, expressed how she felt about Yusko’s advice on when to buy Bitcoin:
— Dancrypted (@dancrypted) May 1, 2020
When Yusko was interviewed on Fast Money on 19 February 2020, he talked about why Bitcoin was performing so well and why it should continue to do well in the future. As part of a segment titled “Crypto Craze”, Yusko talked to anchor Brian Sullivan and the Fast Money traders (Tim Seymour, Karen Finerman, Dan Nathan, and Guy Adami).
Sullivan asked Yusko what makes him so sure that the Bitcoin price will be able to continue to go up “in an extremely volatile market.”
Yusko explained that Bitcoin’s fundamentals continue to improve and that the next Bitcoin halving on May 12 should also help to push the price of Bitcoin higher:
“I think the best thing about the Bitcoin market today is the fundamentals. The fundamentals continue to increase and improve…
“All the trends — all the fundamentals really — continue to get stronger, and we’ve also got the halving event that’s coming up in May, and one of things that [this] does [is] that [it] compresses supply — there won’t be as many rewards every 10 minutes [for] every [mined] block, and so that’ll… decrease pressure on the sales from the miners, and prices usually adjust around those events.
“So, we see a lot of upward momentum through the mid half of this year and into the second half you’ll probably get to see a lot of the chasing that we saw back in 2017, just like we’re seeing the chasing of the stock market today.”
Fast Money trader Guy Adami asked Yusko if interest rates “going lower across the globe is bullish for Bitcoin or crypto in general.”
“I quoted you, and I keep quoting you: ‘in the world of rogue central bankers, Bitcoin is king’.
“Look, interest rates around the world are all going to zero — all of them. US rates are going to zero, Chinese rates are going to zero, they’re all going to zero.
“It’s all because of demographics and deflation and too much debt, and in a world where your only choice — you can’t pay back the debt, you can’t default on the debt — [is] to inflate it away by devaluing your currency.
“The central bankers are going to print. That is massively bullish for Bitcoin, and Bitcoin is your opportunity to opt out of the fiat fiasco that’s going on right now.”
Most recently (last month), Yusko was interviewed by CNBC Global Markets Reporter Seema Mody, who is the host of the CNBC show “Trading Nation” about the potential economic impact of the COVID-19 pandemic.
“The economic shock wave that’s coming is going to be like nothing that any of us has ever experienced because it’s going to be very similar to the 1930s.”
He later went on to explain why he remained bullish on Bitcoin:
“It’s an insurance against the collapse of the financial system… what I am saying is that the [stimulus] response from the government… is going to have a negative impact on currencies globally, particularly western currencies. So, you want to have something that appreciates in value. Bitcoin is going to do that.”