Bitcoin's volatility: Risk or opportunity for investors?
In a recent discussion, Roundtable anchor Rob Nelson and Armando Pantoja, Futurist and Founder of Quant Index, delved into the complexities of bitcoin's price movements and its future as an investment asset.
They explored whether the cryptocurrency's volatility is a sign of growth or a cause for concern, offering insights valuable to both seasoned investors and newcomers.
Rob Nelson acknowledged the fear many feel about bitcoin's fluctuations. "A lot of people will say to me, it's volatile, it's going up, it goes down," he noted. However, he argued that as a young currency and store of value, these swings are within acceptable ranges. "I don't think we're going to see it drop to 40, and eventually we'll see it go up to, I think by the end of the year we'll see it at 80 or 90," Nelson predicted.
Armando Pantoja provided historical context by comparing bitcoin to early stock markets. "Bitcoin is an immature market, it's only been around for 14 years, almost 15 years," he explained. Drawing parallels to the volatile stock market of the 1920s, he emphasized that as regulatory measures and derivatives enter the space, "the market will get more stable." Pantoja cautioned, however, that with decreased volatility comes reduced potential for massive gains: "You won't have these 300% gains anymore."
Nelson saw opportunity in the current state of bitcoin. "People don't like volatility, investors do," he remarked, highlighting that the ability to trade options in bitcoin adds exciting prospects for profit. He suggested that even as prices appreciate, "Right now is a good time to buy, even if the price appreciates."
Looking ahead, Pantoja shared a perspective inspired by entrepreneur Michael Saylor. "He compared bitcoin with the last hundred years in Manhattan," Pantoja said. Just as investing in Manhattan real estate has consistently been advantageous, he believes bitcoin will similarly "always have appreciation, and there'll never be a bad time to buy bitcoin."
