When should you sell Bitcoin? "Never"steemCreated with Sketch.

in bitcoin •  5 years ago 

Mark Yusko says the best time to sell bitcoin is never...

There are some caveats to that of course, because if you could time the markets you would obviously end up with more bitcoin in the long run by selling rips and buying dips.

However, there are very few people on the planet that can successfully time markets in the long run, it's virtually impossible to do it over a long period of time.

Many can do it for a short period of time, but eventually the market's randomness catches up with them.

Which is exactly Yusko's point.

(Source: https://medium.com/@omgfin/when-to-sell-bitcoin-never-mark-yusko-says-btc-like-amazon-stock-326aceea39d9)

Who is Mark Yusko?

Mark Yusko is the CEO of Morgan Creek Capital, an advisory firm that has a strong interest in bitcoin for its diversification abilities.

https://www.morgancreekcap.com/

He has been championing the idea that just about every portfolio should have at least some exposure to bitcoin.

According to Yusko, Bitcoin should be bought on dips (like we saw last week) and held, well, forever.

Why does Yusko say not to sell bitcoin?

According to Yusko, all the fundamentals just keep improving over time, something that means prices should also improve over time:

"All the indicators of the network and the network value are rising; the price of any asset fluctuates.”

Examples include the network hash rate, transaction volume and wallet numbers, all of which have continued their upward trajectory this year.

He went on to compare it to the stock of Amazon, something that anyone who tried to time Amazon stock sales would have likely missed out on the biggest gains as the price continues to make new highs.

He fully expects the value of bitcoin to continue to rise and rise as time goes on as well. Hopefully he is right!

Stay informed my friends.

-Doc

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thats funny i just messages you about the market is hard to predict and it will screw everyone over eventually and people with fear and greed most of the time
good post JR

Yep. Sooner or later the randomness of the market prevails.

waiting on that bull run..

Hopefully it's just a matter of when...

Does the weekly BTC chart look like an inverted head and shoulders to you now?

Honestly, not really. That's a pretty bullish pattern though if one forms.

Only reason why anyone should start selling any crypto currency is when the coin reaches the maximum emission, which means mining can no longer be profitable, as there will never be enough transactions to give same rewards as fee per transaction would need to increase above critical level.

Mining is what keeps transaction fees low enough for anyone to want to transfer funds from one wallet to another.

What about coins that never reach a maximum emission, a la steem?

There is always a maximum emission due to how the number of atomic units are stored in blockchain and the daemons. Atomic unit is essentially smallest unit of currency that can be stored without rounding. For some coins it will take decades to reach the maximum, but for others it will take just few years.

The reason behind using integer atomic units instead of storing the actual coin balance is simple, because not all numbers can be stored as floating point value without precision loss. The coins that use JSON are limited to 31 bits precision even though the processor and compiler could handle 64 or more bits due to default variable type being signed 32-bit integer. Some coins store larger numbers as strings to avoid wrap-around, but constant converting between numeric variable and string variable is performance bottleneck.

In the white paper it states that steem's inflation will continue at .95% indefinitely...

2^31 = 2 147 483 648‬ ... you need to divide the total number of atomic units by 10^N where N is number of decimals the coin use... Even if the coin uses more than 31-bit precision, it takes quite a long time to reach that many atomic units, because most of the new coins are mined or otherwise generated during first few years of coin's lifetime. Inflation does not have any correllated relation to emission as inflation is just how much the real value of the currency, coin or token drops during a single year.

For Steem, I think the current emission is about 346 million, and assuming N is 3, it would mean 346 billion out of 2 billion possible for 31-bit precision is already generated, which means Steem has to be using 63-bit precision instead. 1 bit of precision is always lost as it is required for handling negative numbers.

Love it when some one new from the big corporations echoes how good bitcoin is! I’ve not heard of this chap before but I think I’ve heard of Morgan Creek Capital.
I’m pretty sure they are big into real estate as I used to live in the USA 🇺🇸 a while back and I’ve seen their investors newsletter. So good to see property investors looking beyond their blinkered horizons.

Nice one JC 👍🏼

Lotto.donocle.io
Http://mibcoin.io

What is this?

I have nooooooo idea! He better not do it again 🤔☝🏼 One strike and after that your out! 👊🏼

Yes, they are definitely not just a bitcoin shill.

But if you never sell, then it doesn't matter how valuable it is because you'll never realise that value.

Cg

Haha yep. I believe his point was that the longer you hold it, likely the more value it may have, at least that is his hope/expectation. So, if you hold it 'forever' it will have more value than selling it at any prior time. :)