Adam Back, the CEO of Blockstream and one of Bitcoin’s earliest adopters, said that selling Bitcoin is like “playing in a really bad house – rate casino”. Here’s the specific explanation:
Origin of the Statement: In a recent interview with the Bitcoin financial services firm Unchained, Back shared this view. He came to this conclusion in the early days of Bitcoin when its price was rising exponentially but was extremely volatile.
Reasons for the Analogy: Back pointed out that if you see something that is rising exponentially but with volatility, and you sell it to time the market to fall, the odds are against you. Because the trend line of Bitcoin is upward and to the right, and it is exponential. So there are extremely bad trading odds associated with selling, as you are really hoping that it will fall. Bitcoin is known for its extreme volatility and significant bull – bear market cycles. It has seen multiple corrections of over 80%, which tests the patience of many investors. However, those who have remained steadfast through the ups and downs have been rewarded. In the last 10 years, BTC has had a total return of over 39,000%.
Outlook on the Bitcoin Market: Back believes that anything with a really rapid growth curve will experience extreme volatility until it approaches full adoption. He also pointed out several factors that could support the upward momentum of Bitcoin’s price, including companies directly acquiring Bitcoin and offering indirect exposure through instruments such as convertible notes, the growing institutional interest in Bitcoin, and the involvement of government entities in the cryptocurrency space.
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