Peter Thiel dumped crypto fortune before the crash, a lesson for everybody

Peter Thiel dumped crypto fortune before the crash, a lesson for everybody
фото показано с : invezz.com

2023-1-21 15:44

“Diamond hands” was the mantra preached by crypto investors during the pandemic boom, which saw Bitcoin rocket north of $68,000 and appear as if it would never come down.

It seems obvious now, but what is it that they say about hindsight bias? Cartoon monkeys were trading for $400,000+, billionaires were tweeting about doggy tokens and the most powerful emotion known to humankind, FOMO, was raging long and hard into the night.

Market melts down in 2022

And then it all came crashing down. A stablecoin that proved to be anything but stable nuked the market in May, triggering a contagion crisis of epic proportions. Down came the dominoes, and down came the prices.

But Peter Thiel, one of the most high-profile Bitcoin backers, apparently escaped intact. Founder Fund, the venture capital firm he co-founded, closed out almost its entire crypto position following an 8-year-long investment. According to reports, the Founders Fund currently has no significant exposure to crypto.

The bet returned $1.8 billion, having first invested in 2014. About two-thirds of its overall investment was piled into Bitcoin, which opened 2014 at around $750 and closed the year above $300.

That’s pretty reading – I have marked in black on the below chart where Thiel reportedly got out. It was two months before LUNA death spiralled, sending the crypto market plunging.

There is a lesson here for crypto investors

Thiel attended Bitcoin Miami, the conference in April 2022 which took place shortly after the enormous sale occurred. He spoke highly of Bitcoin, saying that the “end of the fiat money regime” was nigh and that Bitcoin could trade at close to $4.5 million per coin.

His actions said otherwise, and his bank balance will be thankful as a result. It’s a story which happens too seldomly in crypto, with a culture built up during the bull run around “diamond hands”, and a necessity to go all in.

I’m a Bitcoin believer, but that doesn’t mean I don’t think it is lunacy to go all-in on this asset. That holds true at the bottom of the bear market or the top of the bull run. Bitcoin is an incredibly volatile asset and a failure to diversify appropriately will end in financial ruin.

There is a way to invest responsibly and still place into conviction a belief that Bitcoin – or any other asset in the world, for that matter – will excel. What is not wise is to follow the advice of Michael Saylor, who said the below when Bitcoin was trading at $56,000.

Take all your money and buy Bitcoin. Then take all your time to figure out how to borrow more money to buy more Bitcoin. Then take all your time to figure out what you can sell to buy Bitcoin

Michael Saylor

Be more like Thiel than Saylor.

Founders Fund’s crypto sales were one close to ten large moves the venture fund made between 2020 and the end of last year that returned over $13 billion to investors. It’s clear that this was part of a wider strategy.

While nobody can time the market and hindsight bias is making this look like a genius move, there is a lesson here. It is very likely that Thiel still personally believes in Bitcoin and holds a chunk of his own. Who knows? But that doesn’t mean he wanted to bet the future of his firm on it. I wonder if Michael Saylor and the MicroStrategy executives have seen this news.

The post Peter Thiel dumped crypto fortune before the crash, a lesson for everybody appeared first on Invezz.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0095806 (-100%)

crypto everybody peter lesson dumped thiel fortune

crypto everybody → Результатов: 83


Don’t Call It A Hack: Crypto Reacts To The Binance Smart Chain Exploit And Halt

Was the Binance Smart Chain hacked? In the following article, you’ll find Changpeng Zhao’s exact words about the incident. Everybody else’s opinions, though, are about the halting of the chain. Most people are unaware of what Bitcoinist told you a year ago: the Binance Smart Chain is centralized and advertised as such. It’s not a […]

2022-10-8 12:55


Citadel CEO explains why Ethereum will replace Bitcoin, in 'next generation' of crypto

Even with market capitalization crossing well over $1.2 trillion, Bitcoin is not everybody's favorite cryptocurrency. Kenneth Griffin, the CEO of American hedge fund, Citadel, recently shared his viewThe post Citadel CEO explains why Ethereum will replace Bitcoin, in 'next generation' of crypto appeared first on AMBCrypto.

2021-11-13 01:30


Фото:

As Bitcoin Moves Higher, American Rapper Meek Mill Urges Everyone To Learn About Crypto “ASAP”

A top American rapper with 10.5 million followers on Twitter says he wants everyone close to him to learn about cryptocurrency and stocks as soon as possible. In a tweet, the rapper wrote: “I need everybody that rock wit me to learn about stocks and cryptocurrency!!!!!! ASAP!!!!!!” Apparently, this is the first time Mill is […]

2021-1-9 22:52


Фото:

Top US Banking Regulator Reveals Positive Cryptocurrency Regulation Coming in Weeks

The top U.S. banking regulator has confirmed that positive cryptocurrency regulation is coming in a matter of weeks, by the end of the Trump term. “It’s going to work for everybody,” said the regulator, adding that the new regulation will “make it easier for crypto investors to know how to invest,” therefore attracting more institutional […] The post Top US Banking Regulator Reveals Positive Cryptocurrency Regulation Coming in Weeks appeared first on Bitcoin News.

2020-12-7 21:30


Криптовалютное подразделение Square наняло сооснователя Blockstream

Криптовалютное подразделение поставщика платежных решений Square наняло разработчика Bitcoin Core и сооснователя компании Blockstream Мэтта Коралло для работы над протоколом биткоина и проектами, призванными улучшить его.

2019-8-21 11:04


Alleged Bitcoin Ponzi scheme Plus Token could be liquidating billions of dollars in stolen crypto, says VC

Allegedly collapsed China-based Ponzi scheme Plus Token may be liquidating on exchanges portions of a reported $3. 5 billion cache of stolen cryptocurrency, according to venture capitalist Dovey Wan, who is now appealing to the crypto ecosystem to spread awareness of the “critical” matter “before it’s too late”.

2019-8-16 12:19


Most of Bitcoin’s Trading Volume is FAKE: Time to Wake the F*** Up?

Hands up, anyone who is surprised that a little-known crypto exchange that apparently had the largest bitcoin trading volume on CoinMarketCap has been exposed as a wash trading scam platform. In the world of crypto where apparently everyone made it to Lamboland during the 2017 bull run, and absolutely everybody knew when to sell, no one will admit that they have been played.

2019-3-24 19:54


Citibank Scrapes JPM Coin-Like Crypto Token ‘Citicoin’ Platform And Decides To Bet On SWIFT

Citibank Scrapes JPM Coin-Like Platform And Decided To Bet On SWIFT Everybody is talking about JPM Coin right now, the token which was created by the JPMorgan bank. However, do you remember Citicoin? Way back before cryptocurrencies got so famous and Bitcoin was well-known, Citigroup’s Innovation Lab, which is set in Dublin, was trying out […]

2019-3-19 22:59