[Ko Ran] Can you keep Bitcoin for 10 years?
[Ko Ran] Bitcoin prices hit $9,400 at one point on April 30. Industry experts said this may be the price rise everyone has been waiting to come ahead of the next bitcoin halving on May 12. Positive forecasts have been flooding in, but some investors pose questions on the credibility of forecasts that so-called “bitcoin experts” are pumping out. Amid this overflow of information, how can one set a successful investment plan for bitcoin? One way is looking into tactics of an old winner in the investment game: Warren Buffett, chairman and CEO of Berkshire Hathaway. He is a man that made his way to become the world’s third richest man mainly through stock investment. #Buffett is sitting on 167 trillion won … because there’s nothing to invest in Berkshire Hathaway’s shareholders meeting--known as the “Woodstock for capitalists,” as Buffett himself likes to put it—was held on May 2. The event this year was held online due to the coronavirus outbreak. Ahead of the actual meeting, the company disclosed shocking figures for its quarterly performance: a net loss of $49.7 billion in the January to March period. The blow had come from struggles in its energy, finance and aerospace portfolio companies. Even a monkey falls out of a tree. Does this mean Buffett has lost his magic? “We believe that investment and derivative gains/losses, whether realized from dispositions or unrealized from changes in market prices of equity securities, are generally meaningless in understanding our reported results or evaluating the economic performance of our businesses,” Berkshire Hathaway said in its report. In other words, assessing investments should be done over the long term. Buffett himself however admitted that first quarter net loss was the result of investment failure. He had pledged to continue long-term investment on airlines right after the Covid-19 outbreak but bailed out last week selling off all his stock in airlines. “The airline business, and I may be wrong, and I hope I’m wrong, changed in a major way,” Buffett said at the annual shareholder meeting. Then what is Buffett investing in? As the U.S. stock market crashed and rapidly rebounded in April, Buffett did not purchase stock and instead increased cash holdings. As of late March, Berkshire Hathaway had record high cash of $137 billion, a $10 billion increase from late 2019. On why he’s not making any investment moves, he said he’s still looking for good deals. As his famous quote: "If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” #Is bitcoin worth keeping for 10 years? Then, one can ask: is bitcoin an investment worth owing for 10 years? Here are three recent trends that might suggest an answer: The perception change among millennials on “digital assets” is a notable one. The core of the future asset market, millennials are more used to digital wallets than they are to gold bars. According to crypto exchange Kraken, millennials have trust in bitcoin and high interests to invest in them. Covid-19 has accelerated the advent of the central bank digital currency (CBDC)—especially China’s. Its Digital Currency Electronic Payment, or the so-called digital yuan, is currently undergoing pilot tests at McDonald’s and Starbucks in Xiongan New Area. Once the CBDC is out there, the public’s adoption of digital assets will change. Libra White Book 2.0 was recently published. A core notion of it is that its structure was changed in a way that ultimately aims for an inclusive, innovative global finance network. In other words, Libra transformed in a way that accepted regulator concerns in order to launch the service. The launch of Libra will increase the level of public’s understanding of digital assets.