With the rise of bitcoin, more and more investors are calling to acquire bitcoin (BTC). One of the arguments they make is that BTC is great at reserving value in the face of runaway inflation. For some analysts, this is the whole problem with current bitcoin investments.
The profitability of investments in bitcoin, compromised?
Bitcoin continues to rise in value and is subject to a plethora of sometimes contradictory analysis. Recently, crypto-enthusiast Tim Draper called on companies to offer themselves BTC.
Without castigating this approach, the economist Alex Krüger spoke on the subject. And his opinion seems to throw a stone in the pond. According to him, investments in bitcoin are no longer as profitable or at the very least, do not make it possible to become rich as in the past.
According to Krüger, this is related to the fact that the mindset of bitcoin investors has changed. They no longer invest hoping to make significant margins and thus get rich. By opting for bitcoin, they indirectly make the choice to secure their wealth.
A way for them to be less exposed to systemic threats, via an asset whose returns they consider proportional to the risk. In this context, the opinion of Alex Krüger is clear: we should no longer afford BTC in the hope of becoming rich. Only volatile assets could, in his view, allow this.
“People should no longer buy bitcoin to get rich. This boat is gone. Bitcoin is now for wealth preservation, attractive risk-adjusted returns, trading, and hedging against the fiat system,” dropped the specialist. Noting in passing that the only way to really profit from BTC is to provide services associated with the asset.
On a completely different note, the economist spoke out on speculation relating to the growth prospects of the flagship crypto. The expert joins the wave of those who, like Anthony Scaramucci, believe in the massive valuation of bitcoin. However, his position remains circumspect. “I am openly very bullish on bitcoin. A multiplication of the BTC by 5 is possible. But multiplying it by 10 is too high in my opinion,” he said.
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