Tim Draper Made $108 million in 5 Years Just By Investing In Bitcoin
A rich billionaire by himself and a venture capital investor by profession, Tim Draper has made $108 million from his Bitcoin investment in just five years. These earnings are over five times of his investment value at that time.
In 2014, Tim Draper bought a huge volume of bitcoins, (30,000 BTC) from the U.S. authorities involved in an auction. In the auction, Tim left every participant behind and bought a unit of bitcoin for $632 each, with a small premium.
The $18.96 million, which he spent in 2014, currently have a worth of $108 million, even after suffering from the 80 percent reduction the overwhelming cryptocurrency had to go through last year.
Vinny Lingham clarified that the prime trigger behind the 2017 bull rally of crypto assets was retail traders and individual investors, and so far most of the investors have lost a notable part of their capital in the ongoing market corrections.
He further said that what investors have lost both mentally and financially during the falling crypto market, may require a long time to recover. The crypto market will rise once more, but it will surely take a time which can be so long that one might forget that the market had ever fallen in the past. One really cannot ignore the importance of psychology in free markets.
Lingham also said that regardless of falling market, investors like Draper who have invested just a small part of their earnings and savings had the capacity to endure various bear market trends and long term corrections.
In a market like crypto which is still emerging, it is profoundly dangerous to invest beyond what one can survive if he/she is losing entire investment.
During one year, cryptocurrencies may go up by hundreds of percents. Yet, the next year, the benefit class may dive 80 to 90 percent, just in a few months.
But, what long-term bitcoin investors see is the potential of the technology and the capacity of a decentralized form of money to attract people and provide financial freedom.
Investors do not mind locking their assets for a longer time span if they believe that the products/services they are investing in, has an ability to stand the test of time and convince people across the world to experience and use the free and open form of currency.
Billions of individuals in the world, just like Tim Draper, hold on to their investments for quite a long time, recognizing the high risk is included.
