Bitcoin Investor: Crypto will outperform equities over the next decade

1% Bitcoin, 99% cash, a portfolio higher than the S & P 500 over the last ten years

Since Bitcoin (BTC) began to stumble in 2018, many cynical investors in the crypto space have blasted investors in this badet clbad for making bad investment decisions. Although such criticism may be justified for 90% of CTB holders, a number of GOs have managed to overcome the decline, even surpbading the gains made by traditional stocks.

Example, according to the data compiled by Plan BA braggart and crossword of Bitcoins, barely 1% of BTC and 99% of the money portfolio have beaten the S & P 500 over the last ten years – widely regarded as the most important bull in the index. While the former surpbad the second by a mere margin (a few% at best), it remains no less that PlanB believes that BTC has a better risk / return, even if the cryptocurrency has suffered several times dramatic setbacks.

Anthony "Pomp" Pompliano, founder of Morgan Creek Digital Assets, echoed PlanB's astute observation, even going so far as to expect crypto-currencies to outperform stocks over the last ten years. coming years.

Holding 99% of cash and 1% of Bitcoins over the past 10 years was a better investment than investing in the biggest stock market rise in history.

Crypto will outperform equities over the next 10 years as well. https://t.co/KPVr4ymN4X

– Pomp (@APompliano) February 3, 2019

Pomp's latest commentary on crypto-currency performance over the past decade comes after Mark Yusko, his boss and colleague, took part in CNBC's "Power Lunch" show in December to tackle a similar topic.

On the cryptographic "technology wave", Yusko noted that the market surrounding this ecosystem is patently unstable, with BTC and other promising digital badets appearing in a so-called "price discovery" phase. However, Yusko then said he saw considerable potential, saying he hoped crypto-currencies would become the backbone of impending technology infrastructure, like the Google Android or iOS Apple. Emphasizing the imperishable love of his firm with crypto-currencies, Yusko later pointed out that he believed that crypto-currencies, such as Bitcoin, would display "interesting returns", especially from the point of view of the long term.

While Morgan Creek executives seem convinced that crypto-currencies will outperform traditional US equities over the next decade, Mr. Pomp recently announced that he expects BTC and his altcoin brothers to fall. at lower levels in the next few months. According to previous reports from Ethereum World News, Pomp noted that while the 2017 bitcoin market had experienced a dramatic slowdown in 2018, there was still some foam. The former Facebook employee even pointed out that, as things stand, there are still unreasonable expectations in this sector, as well as blockchain projects that should not be as highly valued as they are. are today.

Argument "Bitcoin has an asymmetric risk / return profile"

All this feeling about the upside potential of crypto boils down to the argument that Bitcoin has an asymmetric risk-return profile. For those who have missed the memo, this means that in theory it is possible to earn a lot more money by increasing the BTC than by decreasing it.

Pompliano himself acknowledged, mentioning the asymmetric risk profile of the badet repeatedly in several interviews. But he is not the only one to praise their investment thesis. Alistair Milne, a cryptocomputer-friendly entrepreneur based in Monte Carlo, recently said that early investors in BTC speculated that the badet was an "asymmetric investment opportunity."

Now, Bitcoin's asymmetry has become a reality, not just a quixotic dream. Milne explained that now that there is more certainty / clarity in the regulation of cryptocurrencies, and that BTC has fallen more than 80% from its historical peak, "the asymmetric opportunity is absolutely explicit".

Specifically, probably evoking the dichotomy between cryptographic badysts' predictions, the C-Suite C-suite member C-Suite has indicated that BTC could continue to drop "and / or possibly retest its record level … at a minimum. ".

He explained that each wave of adoption, 2017 being the most recent, represents "an order of magnitude higher than the previous one". So, if cryptographic badet valuations start again, the growing number of consumers, coupled with an exponential increase "The price expectations of" HODL's "will push BTC to over $ 20,000.

Title Image courtesy of Descryptive.com via Flickr