“Long-term” investing is necessary for Bitcoin because crypto markets are volatile and it’s hard to predict when the price of BTC will go up or down, said Jordan Belfort, a former Wall Street stockbroker.
Belfort said that Bitcoin investments require a longer strategy than 1 or 2 years, he pointed out while speaking on Yahoo Finance’s The Crypto Mile.
“If one has a three or five year horizon, I would be surprised if they don’t make money because Bitcoin is fundamentally strong.”
Belfort added further to his statement:
“If you plan to hold a stock for at least two years, you’re likely to profit with reasonable luck.”
In a recent interview, Belfort noted that Bitcoin is sure to emerge as a store of value soon. He said that it is because of its fixed supply (only 21 million bitcoins) and inflation.
“The limited supply of bitcoin will prevent bitcoin from trading as a growth stock. As we see inflation rise, there will come a time when Bitcoin will trade more like a tradeable store of value.”
Lots of macroeconomic factors are affecting bitcoin. Recently, the cryptocurrency has been struggling to maintain a certain price; it is way below its record high. Recently, bitcoin’s price has been unstable.
Trading coins and getting the best price is hard, but BTC cryptocurrency is up by 0.56% (according to CoinMarketCap), which shows a possible upswing in the future.
With Bitcoin in its developmental phase, it’s worth noting that there is a correlation between Bitcoin and tech stocks. Belfort himself acknowledged this development.
“It doesn’t surprise me one bit that bitcoin is trading as an inflation hedge. With how recent it is, it would be more of a surprise if we were already seeing it being used for this purpose.”
Recently, analysts noticed trading habits in stocks and cryptocurrencies were similar. The conclusion was that institutional investors were behind this regularity.
