Bitcoin Has Been Profitable For 98.66% Of Its History
The prominent cryptocurrency analyst found that bitcoin has been profitable for 3,817 days out of 3,869 days of its existence. That makes 98.66 percent of its history. He added that the only people who lost money in the bitcoin market are the ones who exited during downtrends. On the other hand, the ones who kept holding the cryptocurrency regardless of bias pressure made the maximum profits.
Green shows where buying bitcoin has been profitable | Image Credits: Rhythm Trader
To Hold Bitcoin or Not
The revelation came amidst an ongoing discussion about whether or not bitcoin is an ideal store of value asset. Those who support the narrative believes bitcoin is no less than gold, i.e., it exhibits a similar scarcity as the yellow metal but excels when it comes to storing and transacting it without permission. Those who are against the narrative believes bitcoin’s underlying price volatility makes it a poor store of value asset.
Between the two narratives are traders who treat bitcoin as a pure speculative vehicle. Their day job is to make money off the cryptocurrency’s intraday price fluctuations. If they are whales, they could move the market exponentially to either direction. And if they are small fishes, they could merely tail the bias until it stops making a profit for them.
Hodling Bitcoin has been profitable for 3817 days out of a total of 3869 days. That's 98.66% of bitcoin's history.
Green shows where buying bitcoin has been profitable.
The only people that have actully lost money with bitcoin, have just been impatient. 😉 pic.twitter.com/kq82I6QTtR
— Rhythm (@Rhythmtrader) August 9, 2019
The volatility tends to go down if speculators either turns into a believer, i.e., a holder, or an outright hater who do not want to do anything with bitcoin. With the store of value narrative becoming more popular, thanks to the gloomy macroeconomic outlook that is sending investors looking for non-correlated assets for hedging, bitcoin is promising to bring more speculators to its market. It means they would come under the cryptocurrency’s roof to take shelter from an economic storm, but their decision to stay under the roof entirely depends on whether or not they find bitcoin impressive.
Famous trader and cryptocurrency analyst Tony Vays believes bitcoin has enough use-cases to impress an outsider.
“Bitcoin might be the greatest store of value in the history of the world. Yes, it’s volatile — as it’s only been useful for about seven years — but its ‘un-confiscability’ property is unmatched. That is its true store of value, as gold is confiscatable and all other assets even easier.”
The Case Study called Gold
Supporters also cite Gold for its volatility in the earlier years as a store of value asset. After former US President Richard Nixon switched from the Gold standard to the US dollar standard in 1971, it unhooked the yellow metal from its stability for years.
The comparison puts bitcoin in the category of the potential store of value assets. If the narrative develops any further, the investors under the bitcoin’s roof might turn into long-term holders.
Now that people know that holders have made reasonable profits, the narrative appears to be developing already.
Are you a bitcoin holder or trader? Tell us in the comments below.
Images via Shutterstock, Opengold, Twitter: @Rhythmtrader
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