Michael Silver’s advice for investors experiencing their first bear market
If you’re experiencing your first bear market, it’s best to stop checking the Bitcoin price momentarily. It seems that Michael Silver is looking at things from a different angle now that many investors are just looking at their losses and the continued downward trend of the market.
Michael Silver, CEO and founder of MicroStrategy, one of the largest pro-Bitcoin companies in the world, spoke to Cointelegraph during the Pacific Bitcoin Conference in Los Angeles. Conversation the payment.
Above all, Silver told Cointelegraph that when it comes to Bitcoin, you have to take a long-term view.
If you’re buying bitcoin with a time horizon of less than four years, you’re just speculating. Obviously, when your time horizon is longer than four years [استراتژی] Dollar cost averaging is important.
Dollar-Cost Averaging is a way to reduce exposure to volatility in investments. Silver continued:
You buy an asset that you want to invest in for a decade or more; This is a long-term store of value.
With 130,000 bitcoins, MicroStrategy holds 0.62% of the total bitcoin supply since the total number of minable bitcoins is limited to 21 million.
Microstrategy’s paid price is approximately $30,639 per Bitcoin; This means that if the tech company wants to convert its bitcoins into dollars, it will face a significant loss.
Read more: Monthly investment in Bitcoin; What will be the result?
Still, Silver is unfazed by his billion-dollar loss, saying:
caught [این بازی] Don’t follow prices day by day and week by week.
The billionaire compares the valuation of Bitcoin to the valuation of a house. He jokingly gave an example:
If you were buying a house, every time you went to a party, you would get up at 11:00 or midnight and ask, “How much would you pay for my house? I want to sell you my whole house right now.” One might reply, “I’m not really interested in buying a house; But I will give you half of the amount you paid for it. Then you go home disappointed and say, “I lost all my money.”
He advised to avoid this anxiety and if you really need money in the next 12 months, know that this money is not suitable for investment. Silver explained that this is working capital.
Silver explained:
A logical model is to hold pesos for a month or two and dollars for a year or two if you live in Argentina. You [باید] Hold Bitcoin for a decade or two. When you look at it in those periods and time frames, it all makes sense.
Finally, as suggested by Silver and Binance CEO Chang Peng Zhao, keep your bitcoins in your non-escrow wallet.
With yet another digital currency exchange disappearing with customers’ funds, keeping your own Bitcoin is the only way to secure assets that can’t be confiscated.
Read more: Long-term investment in digital currencies; how to hoddle more easily?