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Wences Casares, CEO of Xapo, believes that it would be "irresponsible" for any investor not to hold a position of at least one percent in bitcoin, as this could have a greater impact on the world as the internet.
Minimum Bitcoin Exposure, Maximum Earnings
In an essay published by Kana and Katana In March 2019, the head of Xapo pleaded for Bitcoin to occupy 1% of each investment portfolio. According to Casares, $ 10 million allocated to BTC with one percent could bring in nearly $ 25 million in seven to ten years.
Casares based its analysis on its predictions that BTC could exceed $ 1 million in a timely manner. Conversely, in case of Bitcoin failure, the wallet would have lost only the original 1% – $ 100,000.
According to Casares:
Bitcoin offers a unique opportunity for non-material exposure to produce a meaningful result. It would be irresponsible to have an exposure to Bitcoin that we can not afford to lose because the risk of losing capital is real. But it would be almost as irresponsible not to be exposed at all.
Legend of the investment, Biller Miller is a popular example of the logic of Casares. In July 2017, Miller took a 1% position on BTC. As of mid-December 2017, BTC accounted for 50% of Miller's total assets under management, simply because the BTC / USD value had gained approximately 700% in value during this period.
An investment legend dies after putting 1% of its net worth in bitcoin https://t.co/wz7rUqPIBe via @themoneygame
– Wences Casares (@wences) July 20, 2017
The bear market of 2018 has probably reduced the proportion of Bitcoin compared to the rest of Miller's portfolio. However, as the price of BTC has always doubled compared to July 2017, Miller's Bitcoin bag is still in the green.
Bitcoin looks at the beginning of the Internet
For Casares, whose company stores more than $ 10 billion in BTC for Swiss bunker customers, signs of Bitcoin's long-term success continue to emerge over time. On the one hand, the leader of Xapo says that Bitcoin looks at the beginning of the internet in many ways.
Casares pointed out that since the creation of the Internet, the world has hardly experienced any protocol development and that it is putting more emphasis on business creation. . Bitcoin, according to the CEO of Xapo, represents a new paradigm shift protocol that could have even bigger ramifications than the Internet.
Acting from a purely technical point of view, Casares agrees that there is a possibility that Bitcoin does not necessarily fail, but becomes obsolete. According to him, companies could create solutions at a protocol level more attractive to users than the current state of Bitcoin.
Casares has already expressed similar feelings, describing Bitcoin as an intellectual experiment that could still fail.
However, Bitcoin's open source and borderless approach to both technology and economics reduces this possibility, along with its ever-growing network effect and first-mover advantage.
At the same time, government and central bank policies have made BTC an even more attractive proposition for investors.
Forget Altcoins, the BTC is the real deal
Casares adds that more than 2,000 other altcoins have no chance. The CEO of Xapo said that Bitcoin was a protocol on the way to succeed, as the altcoins can not.
Squeezing the gap between utility and adoption, Casares noted:
More than 60 million people own Bitcoin and more than a million new owners each month. The other 1,000 cryptocurrencies [that process at least one transaction per day] If you have less than 5 million home owners combined, Bitcoin will add more users over the next 5 months than the 1,000 crypto-currencies added in their combined history.
In August 2018, Casares had declared that altcoins would eventually face a "massive extinction event". Commentators such as Matt Hougan of Bitwise and Barry Silbert of the Digital Currency Group also believe that most of the altcoins will not survive the encrypted version of the bursting of the Internet bubble. . After that, most altcoins will go to zero.
The superiority of Bitcoin becomes even more obvious as its value transfer surpasses all crypto-currencies despite the lower number of BTC transactions per day than some altcoins.
Should investment portfolios consider taking a 1% position on Bitcoin? Share your thoughts with us in the comments below.
Image via Twitter (@wences), realidadeconomica.com.ar
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