Morgan Creek Capital CEO Mark Yusko had a very short answer when CNBC’s Melissa Lee asked him about the 15 percent Bitcoin price drop: “Buy it.” He further compared Bitcoin to tech giant Amazon.
Avoiding all the noise
Bitcoin, according to Yusko, would still be a great buying opportunity even if its price dropped to $5,000. The hedge fund manager explained that investors shouldn’t be distracted by daily price moves.
The daily price of Bitcoin doesn’t matter. It’s been alive for ten years. In every year (other than one – 2015), it made a higher low. The market cap has grown every single year.
Yusko points to the fact that every fundamental indicator of Bitcoin (usage, wallets, block size, transaction size, etc.) are reaching new highs. Hence, it shows that the network is getting more robust, and its value is rising.
The Amazon comparison
There seems to be a new narrative that Bitcoin will manage to replicate the success of the dot-com bubble darlings, such as Amazon.
Yusko uses the company’s shares as an example that the road to new highs is always bumpy. Amazon, which went public two decades ago, has had double-digit drawdowns every single year (including 2019).
What was the right time to sell it? Never. Who has owned it since the IPO till today? Jeff and his mom and dad.
As reported by U.Today, CNBC’s Joe Kernen also puts Bitcoin on the same pedestal with Amazon.