“I sold half my Bitcoin holdings over Christmas”
As Bitcoin nearly hit $25,000 over Christmas, I sold half of my holdings in the cryptocurrency.
Reaching yet another record high on Christmas Day, as I told Forbes, amongst other outlets, I made the decision to sell half of my Bitcoin holdings as it should now be treated as any other investment – sell high and re-purchase in the dips.
Bitcoin’s steady price gains throughout this year have made the cryptocurrency the top performing asset of 2020, up over 200%.
As such, I deemed it was the right time for profit taking.
However, let me be clear. There should be no misunderstanding about my move to sell half my Bitcoin. It’s certainly not down to a lack of belief in the digital currency. It’s about profit-taking now to buy more later.
Indeed, now more than ever before, I believe that cryptocurrencies are the future of money.
Before Christmas, Bitcoin surged past $20,000 for the first time ever, with some of the world’s biggest institutions – amongst them multinational payment companies and Wall Street giants – piling into cryptocurrencies and bringing their vast expertise and capital with them. This, naturally, boosts consumer interest.
In addition, as governments continue to support economies and hike spending due to the coronavirus crisis, investors will increasingly look to Bitcoin as a hedge against the legitimate inflation concern.
Indeed, the inherent characteristics of digital currencies are making them ever more attractive.
These include that they’re borderless, making them ideally suited to a globalised world of commerce, trade, and people; they’re digital, making them an ideal match to the increasing digitalization of our world; and demographics are on the side of cryptocurrencies as younger people are more likely to get behind them than older generations.
Furthermore, looking back to a survey deVere carried out recently, the results showed nearly three quarters of high-net-worth individuals will be invested in cryptocurrencies before the end of 2022.
Like myself, many traders will see the all-time high prices as an opportunity to sell, so in the near-term we can expect some pullback.
However, I believe Bitcoin’s longer-term price trajectory is undeniably upwards.