?Be fearful when others are greedy and greedy only when others are fearful? is without a doubt one of the greatest investment philosophy. Put out by, Warren Buffett, one of the greatest investors of all time, the statement could as well provide insights on how to approach Bitcoin investments at a time of great uncertainty, marred with a lot of fear in the market.
?Be Fearful When Others Are Greedy?
Early in the year, Billionaire investor Buffett, warned that cryptocurrency investments wouldn?t end well for investors. At the time, Bitcoin was riding up the charts clocking record highs and it looked like nothing would stop the breathtaking rally.
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” the chairman and CEO of Berkshire Hathaway said.
In a matter of weeks after Buffett made the statement, the popular cryptocurrency came down tumbling. True to his stance, a good number of investors lost a sizeable amount of their investments as the virtual cryptocurrency imploded.
Investors who heed the billionaire advice of being ?fearful when others are greedy? might as well have salvaged a good chunk of their capital.
Be Greedy When Others are Fearful
Fast forward, investor sentiments in the cryptocurrency space is now at all-time lows. Bitcoin having imploded from record highs of $20,000 to below the $10,000 mark, has left a good number of investors worried of what the future holds with regards to the young, lucrative yet highly volatile sector.
However, if Buffett?s statement, ?Be Greedy When Others are Fearful? is to be given some thought, then it might be time to maintain a close watch on Bitcoin investments. Bitcoin perfectly fits the bill on what Buffett meant. A steep decline in the price of the cryptocurrency from record highs of $20,000 to the sub $6,000 could as well have presented a perfect buy opportunity
The plunge came on growing ?bubble burst? fears in the cryptocurrency market. However, the Bitcoin price has shown resilience in recent weeks on stabilizing above the $6000 mark. Given the amount of fear in the market, investors with the affinity of taking big risks could as well view this as a perfect buying opportunity.
Institutional Investors Activity
There is already talk in the markets that Bitcoin could bottom out as the outlook in the cryptocurrency market show signs of improving. A change of heart by institutional investors who for the better part of last year were against bitcoin investments, continues to affirm suggestions that the worst is finally over.
Reports indicate that George Soros could become the latest high profile investor to bet on cryptocurrencies. The Rothschild and Rockefellers families are the other institutional investors believed to be preparing to make substantial investments on cryptocurrencies.
It does not come as a surprise that institutional investors are having a change of heart about investing on cryptocurrencies. In fact, it appears that most of them are living up to Buffett?s advice of being greedy when others are fearful.
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