Importance of investing in digital assets
Alan Howard is a British billionaire who became a heavy crypto investor in 2020
“You have to be in, and have exposure to, the crypto world to understand what is going on there, to identify the challenges and opportunities you’ll face and to know what infrastructure you will have to build to meet those challenges and opportunities head on,” said Howard
Alan approved that he still “actively participates” different BH Digital initiatives (BH Digital is a division of hedge fund Brevan Howard Asset Management. The structure was launched in September and for now has a capitalization of 1 billion dollars)
“BH Digital reflects my belief in the importance of investing across the entire ecosystem, regardless of instrument (i.e. token, equity, NFT etc.) in a diversified and well risk-managed way. This ensures that your return stream is never dependent on just one strategy, one theme or one risk-taker,” said Alan. Howard named stablecoins, games and metaverses, DeFi, smart contract security, marketplaces and cross-chain tools as target segments for investments. In the future, BH Digital will roll out market-making capabilities to support new tokens by providing “initial liquidity,” he said. Alan noted that in the cryptocurrency market, venture capital investment and liquid trading “should be considered as parts of the same universe.”
Importance of long-term Bitcoin investing
Michael Saylor is a MicroStrategy CEO (MicroStrategy is of the best American company that provides business intelligence, mobile software and cloud services)
In his opinion Bitcoin is not just the main cryptocurrency.
“Bitcoin is the most certain thing in a very uncertain world, it’s more certain than the other 19,000 cryptocurrencies, it’s more certain than any stock, it’s more certain than owning property anywhere in the world,” said Michael. In his opinion, suspicions in cryptocurrencies of people included in the observation group amount to at least $100. Should they occur, ”there’s probably nothing to say about it," Saylor noted.
Commenting on the collapse of Terra and the subsequent market correction, the head of MicroStrategy doubted that what was happening was evidence of a bearish phase: “I don’t know if it’s a bear market or not, but if it is a bear market, then we had three of them in the last 24 months,”
Saylor added that he prefers not to get carried away by short-term prices. According to him, people who pay too much attention to the charts, “guessing on coffee grounds”: “If you’re not planning to hold BTC for four years, you’re not really an investor at all, you’re a trader, and my advice for traders is don’t trade it, invest in it” - pointed Michael.
MicroStrategy was the first public company to invest part of its own capital in digital gold. Since December 2020, the company began to use debt financing to buy bitcoin
So it’s important to be a long-term investor if you’re going to work with Bitcoin. But it’s also important to keep an overall system in mind and do allocate funds to different assets so as not to be dependent on one.