When the Bitcoin (BTC-USD) price pulls back, what’s your emotional response? Do you view it as a panic point or a generational opportunity? With BTC down from its prior peak of $73,750, I encourage you to buy and HODL (hold on for dear life) through the ups and downs.
Or, to borrow a phrase from the cryptocurrency community, I want you to have “diamond hands” (hold Bitcoin with conviction), not “paper hands” (panic-sell whenever trouble arises). When all is said and done, investors should embrace the volatility and consider lower prices as prime entry points for Bitcoin purchases.
Think of Bitcoin as Digital Real Estate
One of the best-known proponents of cryptocurrency is MicroStrategy (NASDAQ:MSTR) Executive Chairman Michael Saylor. In a recent interview, Saylor considered a long-term bullish Bitcoin angle that you probably never thought of.
Saylor constructed an argument that hearkens back to the dot-com era of the late 1990s and early 2000s. Here’s a snippet of what Saylor said:
“The future is digital, right? There’s a race to own cyberspace. That being the case, empires are built on productive property … Bitcoin’s digital power. You want bitcoin. You want to own cyberspace … It’s a good investment.”
Many years ago, you could have owned pieces of internet “real estate” by purchasing shares of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) (though it was called Google back then), Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) (called Facebook at the time). Those stocks have substantially appreciated in value, to put it mildly.
Saylor is making a similar case for BTC as digital “real estate.” The Bitcoin blockchain could be considered “productive property,” and it’s digital property, much like internet domains.
So, I tend to agree with Saylor’s call to “own cyberspace.” Sure, there are risks involved, just as it was risky to be an early buyer of Amazon stock or Alphabet/Google stock. But then, BTC is gaining adoption just like the internet did many years ago. It’s better to be early and deal with the price volatility, than to get in later at much higher price points.
The BTC Victory You Probably Didn’t Hear About
It’s not an exaggeration to say that Bitcoin is going global. The adoption story is happening worldwide, even if you might not always hear about the progress in the cryptocurrency market.
For instance, Russian President Vladimir Putin recently signed a bill legalizing cryptocurrency mining in that country. I had to do some digging just to find out about this important news story. That’s probably because I’m based in the U.S., and Putin certainly isn’t a beloved figure in America.
Ki Young Ju, CEO of cryptocurrency analytics firm CryptoQuant, clearly appreciates the significance of this development:
“Russia seems to be acting to keep up with the US. Nation-level #Bitcoin FOMO is heating up. Their entry will boost the hashrate, strengthen network fundamentals, and diversify miner politics.”
I agree 99% with Ju’s X (formerly known as Twitter) posting. I only disagree 1% because this isn’t “FOMO” (fear of missing out).
It just means that Russian Bitcoin buyers get it. They understand that Bitcoin is the future of money in countries with deteriorating fiat currencies. So, don’t disregard this game-changing news item just because Putin’s name is attached to it.
BTC: Don’t Hold It With Paper Hands!
When Bitcoin pulled back from $73,750, it was violent and scary. Yet, true Bitcoin believers are contrarians. They buy the dips with conviction because they understand Bitcoin is going global and cryptocurrency is the money of the future.
The takeaway is that you shouldn’t buy Bitcoin with “paper hands.” Instead, consider the long-term benefits that come with of owning digital real estate on the Bitcoin blockchain. With that in mind, feel free to grab some Bitcoin with both hands – with diamond hands – and HODL it for the long term.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
