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Investor Who Predicted Black Monday Buys His Bitcoin

bitcoin

At this time, many have already sold their cryptocurrency such as Bitcoin especially after the cryptocurrency plummeted from its near $20K peak. Bitcoin lost 80% of its value since reaching its peak. And now, there are still a lot of issues surrounding the crypto market. For instance, you still have regulators not having a general consensus on how to treat cryptocurrencies. And for this reason, it still leaves a lot of doubt whether or not it is going to be adopted any time soon.

However, if you’ve been looking for a positive sign whether or not you should buy shares, then you want to take a closer look at Marc Faber who is was a Bitcoin skeptic for some time. He is a legendary investor in the stock market. Faber has been known as the one who predicted the stock market crash in 1987.

But now, he is exploring cryptocurrencies. He started buying in February. He mentioned that the $3,000 rate looks so much better compared to when it reached its peak near $20K.

Faber mentioned in the interview that “I was tempted to purchase Bitcoin when it was available for $200. But I held myself from purchasing something that I didn’t fully understand”. Faber mentioned that “in the last three months, Bitcoin has surged 15 percent”.

Standard for Money Transactions?

He believes that followers shouldn’t view this as a sign to buy cryptocurrencies. He clarified that this isn’t an endorsement for BTC. He clarified that though he is still unconvinced about cryptocurrencies, he thinks that Bitcoin could one day become “the standard for money transactions”.

Known to be the one who predicted the 1987 stock market crash that was dubbed as “Black Monday”, it is hard to ignore his decision to go for cryptocurrencies. However, when asked how much crypto should his followers go after, he simply thinks that “I would suggest to my followers that they invest such an amount in BTC that they can afford to lose”.

He is known for his style when it comes to investing. He has recommended people to invest outside the banking system. He even invested in physical gold to broaden his portfolio. He also used this to protect his portfolio from the economic crisis. He even thinks that holding cash is not a good idea.

He mentioned that “Compared to other assets, money has lost a tremendous amount of purchasing power. It’s good to have diversified asset outside of the banking system”.

Regulatory Clarity

The bearish market is mainly due to the lack of regulatory clarity within the market. The good news is that Bitcoin and Ethereum are considered by the US Securities and Exchange Commission, not as securities. Recently, a correspondence between Coincenter and the SEC chairman Jay Clayton and representative Ted Budd was able to clarify the position of the agency when it comes to Bitcoin and Ethereum.

Though this is the case, there are thousands of other cryptocurrencies that are in limbo. And also, the agency went after companies that were able to raise funds via ICO. It even went after celebrities such as Floyd Mayweather.

Should you start investing in Bitcoin while it is still considered low? Or should you wait a bit?

Lee Jenkins

Lee is our resident cryptocurrency expert who knows the ins and outs of each coin and the blockchain technology behind them. You’ll find that most of our technical guides are written or overseen by Lee and they are all easily digestible by the new and experienced alike, so there is no better place to learn blockchain 101 than here. Occasionally you may see a news article from him if it’s tech related!

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