BTC’s Break Above 2017’s ATH of $20,000 Converts One into a Bitcoiner
Ritholtz Wealth Management COO changes mind about Bitcoin, now advises holding 2% of a portfolio in BTC — so one is unlikely to get rich but unlikely to go bankrupt either.
As we enter into 2021, more and more people are turning into Bitcoiners.
The latest one is Nick Maggiulli, the creator of Of Dollars And Data and the Chief Operating Officer at Ritholtz Wealth Management, which has nearly $2 billion in assets under management.
In his blog post, Maggiulli admitted being “wrong” about Bitcoin as he said,
“There comes a point in every investor’s journey when they must admit that they were wrong about something.”
Titled “Why I’ve Changed My Mind on Bitcoin,” Maggiulli shared that this realization of being wrong about BTC came when the digital asset hit 2017 ATH $20k last month.
Although he didn’t think Bitcoin was ever “going to zero” he didn’t think either that Bitcoin would surpass these highs for many years, if at all.
According to him, more demand from buyers and reduced supply from sellers have helped boost Bitcoin’s price BTC -1.07% Bitcoin / USD BTCUSD $ 63,251.05
-$676.79-1.07% Volume 76.36 b Change -$676.79 Open $63,251.05 Circulating 18.68 m Market Cap 1.18 t 9 h India’s Minister of Finance Says Cryptocurrency Bill is Designed To Protect Investors 10 h CBDC's Unlikely To Threaten Cryptocurrencies, Market Has Evolved: Morgan Stanley Report 11 h Coinbase Is Now Live On Nasdaq, Valuation Soars Past $100 Billion with Shares Trading Above $400 and “cement it as a legitimate asset class within the investment community” which helped Bitcoin “become a form of digital gold,” he said.
He notes how Bitcoins’ floor price continues to go up, “increasing the likelihood of Bitcoin’s future survival.” As for intrinsic value, neither does $10 trillion market cap gold have any, he argues.
It’s all about belief, he said and in the case of Bitcoin, “the cult is becoming a religion.”
Maggiulli further noted that while bullion has been around for millennia, “it wasn’t until August 1974 in the U.S. that it was an investable asset class” which led to its prices to be tripled in the next six years.
Still, he only advises to “hold no more than 2% of your portfolio in it” which means “you’re unlikely to get rich, but you’re unlikely to go bankrupt either.”
But he clarified that his cautiousness towards BTC is not in terms of price but the “possibility of a government ban on ownership.”
Again, he points out how back in April 1933 the U.S. government did just that with yellow metal. And the recent SEC complaint against Ripple, has him not ruling this out completely yet.