Where bitcoin goes: forecasts and opinions of professional investors who have invested in it long before the boom

The new boom of interest in cryptocurrencies, caused by the explosive growth of Bitcoin and the ether, gives the impression that only now the crypt is attracting the interest of whales investment. In fact, the most experienced and shrewd sharks of the financial world became interested and bought Bitcoin as early as 2012-2013, when it was more like a toy for geeks than a tool for earning - however, for the time being, these investments were not told to the general public.


For example, Steve Wozniak, co-founder of Apple, recently shared with CNBC channel information about what he invested in Bitcoin, for the purpose of the experiment, in those days, when one coin cost $ 700. He was interested in the technical ability to pay Bitcoin bills in restaurants and hotels, however, since then his investments have managed to significantly increase in price, thereby revealing also investment attractiveness.


I became interested in Bitcoin for the first time, when it cost $ 70, imagine, I climbed the Internet, but it turned out that in order to buy them you need a special account in a special bank, so I couldn’t buy any Bitcoins and left that idea. In the end, I bought a certain amount of coins when they cost $ 700, after which the price fell to $ 350. For me it was not an investment, I wanted to experiment.

American billionaire Mark Kyuban, who owns the NBA Dallas Mavericks team, has invested in many popular companies, such as Magnolia Pictures, Dropbox and AXS Television, as well as the owner of his own show on NBC recently advised news.bitcoin.com/billionaire-investor-and-shark -tank-star-mark-cuban-changes-mind-and-fans-to-watch-bitcoin 7 million follow Bitcoin twitter followers .


A few years ago, in 2014, Cuban adhered to another point on this subject, arguing that Bitcoin is great as a technology, but it has no future, since central banks will not allow Bitcoin to develop as a currency.

However, Kuban later changed his mind about cryptocurrencies, and on June 6, when the price of BTC surpassed $ 2,900 on world exchanges, Kuban tweeted: "I have just subscribed to Inside Bitcoin, which I advise you to do."

Later Kuban explained that with Bitcoin, in his opinion, caution should be exercised:

I believe that this bubble is just incomprehensible for now, when and how much it will be corrected, but I think that the blockchain technology is of great value and will be the basis of most operations in the future. Health, Finance, etc. - all will use the blockchain.

Now, a month later, it seems that Mark Kuban decided to completely forget about caution and move all-in, announcing on June 30 that he would participate in the first ICO in his life and invest $ 7 million in the crowdfunding campaign of the Australian online bookmaker Unikrn .
Kuban commented on this news as follows: “High risks, great profit”.

Mark believes that the tokens for the online gambling industry fit perfectly into the cryptocurrency trend. Founded in 2014, Seattle-based Unikrn has already attracted 10 million venture capital from such investors as Ashton Kucher, Elizabeth Murdoch and the company 500 startups.

Another well-known hedge investor, who was included in the Forbes billionaire list in 2008, Michael Novogratz predicts that cryptocurrency capitalization can reach $ 5 trillion in five years if the industry can get out of the shadows.


“In 1999, the Nasdaq capitalization reached $ 5.4 trillion, so why shouldn't cryptocurrency grow just as much?” Novogratz said, referring to the Nasdaq Composite Index.

"In this area, a lot of capital is involved, and real money is flowing into cryptospace, so I think it is now at the point of take-off. To reach the top, cryptocurrency companies need to develop sound business principles that would satisfy regulators and give legitimacy to the emerging industry “, Novogratz said on June 27 at the CB Insights Future of Fintech conference in New York.

Novogratts said that as prices rose, he got some profit from his deposits in bitcoins and ethers, but still holds only 10% of the capital in cryptocurrency, including cryptoactives, which he bought during the ICO. He said that he would like to buy more bitcoins, if the value of the coin falls to $ 2,000, and esters, if their price drops to $ 150-200.

He acquired the first bitcoins in 2013, when the value of digital currency was $ 50. During 2013, the value of Bitcoin continued to decline due to the Mt. Gox, which led to the loss of hundreds of millions of dollars. Early investors in cryptocurrencies are respected among participants of the crypto community, in view of the foresight and credibility shown in relation to the cryptocurrencies in the early stages, and Novratz is certainly one of them. For example, in 2013, the cost of Bitcoin has long kept record-low positions for 11 months, which is not very conducive to the inflow of investments. Novogratts, who spoke about the attractiveness of investing in Bitcoin in 2013 and earlier, was for a long time one of the most famous supporters of cryptocurrency on Wall Street.

Since Novogratts acquired its first bitcoins, the value of a digital coin has grown from $ 50 to $ 2500 and continues to grow. During the New York blockchain conference held at the Harvard Business School, Novogratz said that investing 10% of assets in cryptocurrency was the best investment decision in his life.

In addition to bitcoins, Novogratts also acquired esters at the ICO stage, when the cost of the token was $ 1. At the moment, the cost of ethereum has exceeded $ 300, respectively, coins acquired by Novogratz have increased in value by 300 times. Novogratts said that in his time, a personal meeting with Vitalik Buterin helped him to realize the true potential of Ethereum.

"Bitcoin can become a viable means of storing savings like gold, while Ethereum can become a platform underlying the future of Google and Facebook, and all money transfers and securities settlements are likely to be carried out using blockchain technology," he said.

To give legitimacy to the industry, it needs to fully integrate into civil society with its rules, Novogratts said:

“Pay taxes. After all, no one in this space pays taxes. For now, it's just a bunch of libertarians, ”he says, adding that the core development team is unconditionally guided by the best of intentions. “The guys who build this system are led by a truly revolutionary spirit.”


Bill Miller is a portfolio manager for the Legg Mason Value Trust (LMVTX), which, under his leadership, recorded one of the longest “win-win series” in the history of mutual funds. From 1991 to 2005, the total fund return exceeded the S & P 500 Index for 15 years in a row.

The Miller Foundation has grown from $ 750 million in 1990 to more than $ 20 billion in 2006.

Recently, Miller confessed to www.cnbc.com/2017/06/16/bill-miller-likes-whole-foods-deal-plus-valeant-and-bitcoin.html in an interview with CNBC television channel that he and his son are strong supporters of Bitcoin .

In November 2006, Fortune’s editor-in-chief described Bill Miller’s investment style as follows: “Miller spent decades studying free thinkers in the world of finance, and eventually became one of them.”

Miller said that Bitcoin revolutionizes the world of finance:

This is a real revolution and innovation in the world of money, nothing like this has happened in the last thousand years.

Mike Maloney, a well-known broker, author of books and founder of the investment fund for precious metals GoldSilver.com, said that the purchase of cryptocurrencies, such as Bitcoin, is one of the possible ways to protect yourself from the tremors of the global monetary system. According to his forecasts, “something big and very dangerous is coming very quickly and everyone should get ready for this.”


Mike Maloney, who wrote a book about investing in precious metals, predicts in his video presentation that the impending market crisis will be a crisis of widespread bubbles:

In 2000 it was a stock. In 2008, these were stocks and real estate. This time, these are stocks, real estate and bonds and this is the largest bubble of all time. When it bursts, it will be a devastating collapse for most people, but it doesn’t have to be a crushing blow to you.

Answering the question of how to prepare for this roller coaster and form a new monetary system (according to his observations, new forms of the system appear every 30 years), Maloney noted that the methods of preserving capital have become somewhat more complicated than just investing in gold and silver.

Mike argues that despite the fact that cryptocurrency cannot be fully relied on, because without the Internet, they are worthless, yet alternative money systems are extremely important:

Everyone needs an alternative monetary system that works well and these already exist today. They are called cryptocurrencies. It all started with bitcoin. Then there were a few others. I have some. I do not have a lot of cryptocurrency, but I believe that it is necessary to have it, in case of the collapse of the monetary system, in this case, you can exchange money directly, even over long distances.

It is noteworthy that, while many investors in precious metals perceived Bitcoin as a competitor in the market or a risky investment, Maloney recommends investing in Bitcoins to secure a method of calculation in the event of a fiasco of traditional assets.

Snapchat pioneer Jeremy Lew said recently that cryptocurrency is “the asset that today's investor should strive for.”


Speaking to a CNBC audience, Lew, who predicted in April that the price of bitcoin would rise to $ 500,000 by 2030, suggested that the recent highs were only the beginning of a turn of the price of virtual currency.

“If you consider yourself an investor, you want to be where the largest volume of trade takes place, and now it is happening in Bitcoin,” he explained.

According to Lew's forecast, given the political climate of 2017, the prices we have been seeing lately are only the beginning, not the end of the upward movement.

“Bitcoin and other digital currencies are particularly beneficial in periods of political and economic instability,” says Lew. "In principle, when a citizen does not believe in the currency of his country, he is looking for alternatives, and a digital alternative, such as Bitcoin, becomes much more attractive in the current circumstances."

Venture investor, co-founder of the Union Square Ventures investment fund located in New York, Fred Wilson at the end of June shared tips on investing in Bitcoin and Ethereum with subscribers of his blog, in an article titled “Everything Is Sold”.


In this article, Wilson said that for the first time he had invested in baton and ethereum on the advice of his daughter, who is also one of the early investors in cryptocurrency. Now he also recommends that traders and investors invest in cryptocurrencies, given the projected increase in their value over the next 10 years, but not in the short term.

He notes that most traders in the cryptocurrency market tend to capitalize on short-term fluctuations, and when currencies reach heights or are in a position that is good for taking profits, cryptoactive owners sell their investments, thereby triggering a correction.

Meanwhile, early investors, like Wilson, who invested in Bitcoin in 2013, believe that the majority of short-term corrections do not affect the value of their portfolios in the long run. Wilson writes the following:

I tried to invest in Bitcoin in early 2013, and in Ethereum last year. I continue to invest, but not so significant amounts. Little by little every week. In this way, you can form a significant portfolio, but you need to maintain patience and not sell investments.

Wilson notes that he will not try to predict course corrections and resistance points, despite the fact that his predictions often come true. Since Wilson regards a cryptocurrency port as a long-term investment, he does not focus on short-term fluctuations in exchange rate.

In particular, he writes:

I do not strive to predict falls and highs, despite the fact that I often foresee when they happen. I am not going to predict the coming movements of these assets, I just believe that in time, in 5-10 years, they will cost much more than they do now.

Wilson summarized his thesis as follows:

Perhaps I am mistaken in something. but to be honest, I don’t care. I will buy both during the correction and take-off period, whatever it is. Because, more importantly, how much these assets will cost in five or ten years.

PS The general enthusiasm with which the sharks of traditional finance advise buying cryptocurrencies can not but rejoice. However, we all know that you can not only buy a cryptocurrency - you can still mine it for now:

Source: https://habr.com/ru/post/405135/

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