Bitcoin Investor Tim Draper Has Made $89.1 Million in Investment in Less Than Five Years
The US authorities sold a large part of 30,000 BTC to Tim Draper in 2014 in an auction. With a payment of $632 per Bitcoin and a small premium, he outbid all investors involved.
The $18.96 million investment in 2014 is now worth $108 million. The dominant cryptocurrency has corrected by 80 percent in the last 12 months.
As CCN reported, a South African Shark Tank host and Civic CEO Vinny Lingham suggested that the cryptocurrency market may take a long time to recover from its correction.
The rally of digital assets in 2017 was primarily triggered by retailers and retail investors. The vast majority of investors lost a significant portion of their capital at the last correction, Lingham explains.
He noted in psychological and financial terms that most investors who lost massively in the bear market situation could take years to recover.
“The crypto market will rise again, but most likely only when the pain of the recent fall becomes a distant memory. Do not underestimate the power of psychology in free markets. “
But investors like Draper, who have invested a small portion of their net assets without significant impact on their portfolios, have survived numerous bear markets and long-term corrections.
Investing in an emerging market like crypto is very risky. The cryptocurrencies can grow within a year by 300 to 500 percent. But in the following year, the value of the cryptocurrencies is expected to fall by 80 to 90 percent within several months.
Investors believe in Bitcoin
The investors, who firmly believe in the potential of technology and the ability of an uncritical form of money to give billions of people the financial freedom worldwide. These include Tim Draper, Mike Novogratz, and Peter Thiel, who stick to their investment year after year and recognize the high risk.
So Tim Draper wrote:
“Bitcoin’s long-term vision is to enable the world economy to emancipate. The potential of Bitcoin is limited only by the imagination of entrepreneurs working to drive this new virtual economy. To monitor and keep it honest, I believe that the community of users will ultimately self-regulate by possibly overriding or avoiding the need for different governments to regulate the crypto world. I have experienced the ups and downs with Bitcoin and I am as sure as ever that the Bitcoin revolution is coming.“
For investors who have retained the dominant cryptocurrency as a long-term investment, they expect the asset to eventually compete with gold or other types of secure assets to become a multi-trillion dollar asset.
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Author: Marko Vidrih
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