"The reason 'buy and hold' (or HODL) makes sense for BTC is that a handful of days each year account for the bulk of gains for BTC. For instance, in 2017, a total of 12 days represent the full-year return of BTC."That means that if you're looking to make a profit on Bitcoin, you need to HODL, through the good and the bad, to capture those days. However, can a stock investing approach really be applied to Bitcoin, when it's been around for far less time than the decades-old stock market and is way more volatile? With less data to work from, it's harder to generalize results. Be that as it may, Lee's reasoning is something to keep in mind for those inclined to panic when Bitcoin drops. Lee's argument essentially comes down to this: be patient and HODL through to the good days. >> Ripple (XRP) joins forces with blockchain consortium Hyperledger Those good days may be approaching fast, according to Abra CEO Bill Barhydt. Abra runs a global digital wallet app where you can buy, store, and invest in up to 20 cryptocurrencies, including Bitcoin, Ethereum, and Ripple. In an interview with Business Insider, Barhydt claims that Bitcoin is in store for another price rally - and soon. He believes that once institutional investors, like hedge funds and asset managers, start exploring cryptocurrency, Bitcoin prices, along with the rest of the crypto market, will recover. "That's going to happen this year I think," said Barhydt. He explained his reasoning:
"I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose. Once the floodgates are opened, they're opened.">> Coinbase adds ERC20 support - altcoins to come? Barhydt pointed out that the December crypto price rally of last year corresponded with Japanese financial institutions investing in cryptocurrencies. He believes this will happen again once the West gets going.
"There really is zero large-scale institutional money from the west in crypto right now. That is happening in Japan. Once a large sizable chunk of Western institutional money starts to come in — watch out."He also believes that the regulation currently cracking down on cryptocurrency markets will actually end up encouraging institutional investors to move into crypto. In a more regulated space, more institutional investors will want in, fearing loss and scam less. Already, there is evidence of some institutional involvement in crypto. Mark Yusko, the founder and CIO of Morgan Creek Capital, announced that the firm is looking to raise as much as $500 million to start a new crypto and blockchain exclusive hedge fund. The game CryptoKitties recently received $12 million in funding from a group of investors including Andreessen Horowitz. So all this panic, it may be for nothing. What do you think? Is Bitcoin on the road to recovery? >> Check out Crypto Madness: ImmVRse ICO vs. Truegame ICO Featured image: ARS Technica