Venture capitalist Fred Wilson suggested that bitcoin investors buy the post-crash dip because there are a lot of exciting developments right now that make the crypto industry worth investing in.
Wilson proffered the advice in a February 28 blog post:
“We are in the post-crash cycle in crypto, and that has made the sector interesting to me again. Prices are way down and there is a lot of great work being done on projects we are invested in and projects we want to invest in.”
That’s hardly controversial or earth-shattering advice: Buy low, sell high is a stock market cliché.
Fred Wilson’s Advice: Buy the Bitcoin Dip
Wilson was reacting to a tweet by Chris Burniske, a partner at New York blockchain startup Placeholder Ventures.
On February 27, Burniske posted a statement Wilson had made during the 2015 bitcoin crash. At the time, Wilson said patient investors could enjoy a handsome windfall if they invested wisely during a down market.
“The lesson I’ve learned in my career is to invest into the post-crash cycle. When you do that, and do it intelligently, you are rewarded greatly” – Fred Wilson said 4 years ago (in the last crypto bear market).”
Wilson responded to Burniske’s tweet by saying: “It requires a lot of patience. We didn’t really get rewarded for it until 2006/2007 in the post-Internet crash.”
Wilson: Trump Will Be Removed This Year
Of course, people should take Wilson’s advice with a grain of salt, because the predictions of any market prognosticator could be on-point or woefully off-target.
One of Wilson’s laughable predictions from January is that “we will have a different President of the United States by the end of 2019.” While that’s amusing, the realistic chances of President Donald Trump being removed are negligible.
Here’s why: Even if the Democrat-led House of Representatives voted to impeached Trump, the Republican-led Senate would have to convict him before he’s impeached. And even if Trump were impeached, that does not automatically lead to his removal.
Why Pelosi is unlikely to try to impeach Trump https://t.co/bU5Q55QgJ7 pic.twitter.com/cAYZoG6vlh
— The Hill (@thehill) February 27, 2019
Just look at former Democrat presidents Bill Clinton and Andrew Johnson, who actually were impeached but weren’t removed from office Why? Because their impeachment trials failed to gain a two-thirds majority vote in the Senate.
In fact, there has never been a US president removed from office using the impeachment process.
Fred Wilson: Bitcoin Bottom Is Near
As for the crypto market, Fred Wilson said last month that he believes the bitcoin slump is nearing a bottom. However, he said the process could take the entire year.
Wilson expects some bull-market rallies but warned that the crypto market will remain under pressure throughout 2019.
“I expect we will see some bullish runs, followed by selling pressures taking us back to retest the lows. I think this bottoming-out process will end sometime in 2019 and we will slowly enter a new bullish phase in crypto.”
Regulators Could Choke Off Innovation
Wilson previously expressed concern that regulators could come down too hard on the cryptocurrency market and stifle innovation. However, he conceded that without appropriate regulation, bitcoin scam artists could run rampant.
“There will also be pressure on the crypto sector in 2019. The area I am most concerned about are actions brought by misguided regulators who will take aim at high-quality projects and harm them.
And we will continue to see all sorts of failures, from scams, hacks, failed projects, and losing investments be a drag on the sector. But that is always the case with a new emerging technology that allows anyone to set up shop and get going.
Permissionless innovation produces the greatest gains over time, but also comes with the inevitable bad actors and actions.”
Click here for a real-time bitcoin price chart.
Article First Published here