Crypto-Hoarders - The New Privileged Position
Winds Of Change
For the longest time, Crypto investors were seen as adventurous yet foolish. Very few considered having sizeable Crypto holdings as a wise move. Crypto whales were excluded, as the majority of wealthy individuals considered it a game, with no real long-term value or stability. The arrival of Saylor’s Strategy and BlackRock has undoubtedly adjusted this perspective. It didn’t take nearly as long as many expected.
Experts within the TradFi sector expected an entire decade to recover from the 2018 bear market. Bitcoin has recovered significantly since $20,000, and institutional-grade investment has already been realized. This has, of course, changed the game and caused Bitcoin and Crypto to be seen from a new perspective. Avoidance has since led to a new and growing appetite. It’s funny how things can change in a few years.
Michael Saylor has been a key proponent of this shift. Remaining bullish and continuously advocating for Bitcoin has been an integral aspect of this shift. The question now is: What happens next? Bitcoin has proven itself over the years, so even a strong, prolonged correction is likely to be viewed more favorably than in times past.
Fortune Favors The Brave
The practice of buying the dip is likely to become more of a trend amongst larger investors, as they have now seen Bitcoin recover numerous times. Not only does the asset recover, but it also reaches new highs. Shares, on the other hand, can spend years heading in the wrong direction. Bitcoin’s resilience is paving the way for a new breed of investors. Make way for the Crypto Hoarders!
Those who have been on a steady path of accumulation, especially income-yielding assets, are fast becoming the new privileged class. Having large bags that are simultaneously generating yield is a strong position to be in. This is why building additional portfolios is a great idea. Over time, they can mature into something of substance and reward. However, you have to have a line in the water if you want to catch a fish.
I have always said that those earning a salary outside of Crypto should allocate a modest amount to Crypto. This can be further enhanced by free accumulation. Regardless of corrections and even full-blown bear markets, investors are beginning to allocate more trust to the sector. Holding yield-bearing assets is also likely to grow in popularity.
The inclusion of Crypto and blockchain-based models and ideas says a lot regarding the future. Even if we were to experience another bear market soon, or even a swan event, the long-term picture remains intact. This wasn’t the case regarding previous bear markets. Uncertainty surrounded the sector. BlackRock and Saylor have much to change this perception.
Final Thoughts
Yes, bear markets have not been erased from Crypto’s future. However, the tone is different now. Investors now feel more confident holding Crypto assets. As with any market, one must be prepared to weather the storms that arise, as they always do. There is no market void of complications, as challenges are everywhere. These are merely my thoughts and should not be considered investment advice. See you next time!
Disclaimer
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This article was first published on Sapphire Crypto.
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