The general partner of the cryptocurrency fund compared the main digital coin with vintage Ferrari and told how to earn money on it
Bitcoin is a scarce means of accumulation, from the moment of purchase it must be kept for at least three years, I’m sure the general partner of Blockchain Capital Spencer Bogart. He recommended to allocate no more than 1% for the cryptocurrency in the portfolio and explained the high volatility of the asset in the summer of 2019, writes Forbes .
“This is the natural behavior of any asset class with limited supply and variable demand. This is also true for Bitcoin, especially considering the fact that it is in the early stages of development, ”explained Bogart.
According to him, such fluctuations are peculiar, for example, to gold and other expensive collection items, such as vintage Ferrari or Picasso’s paintings. The general partner of the cryptocurrency fund also spoke about the Vancouver real estate market, where demand comes from foreign buyers who do not live in houses and do not rent them, but resell after a while.
“This is the purchase of a scarce asset, which is used as a means of accumulation for the preservation of capital over time,” said Bogart.
He explained the rise of Bitcoin last week with the announcement of the blockchain project Libra from Facebook. Also, the rise in price of the main cryptocurrency can be associated with global monetary policy or negative interest rates on bonds of various countries, the expert says.