Dan Bilzerian Invests Just Prior to Bitcoin CorrectionMay 30, 2017 8:21 am
The cryptocurrency market has been on fire over the past few months, led by Bitcoin which soared to around $2,500 last week, a development which grabbed the attention of eccentric millionaire playboy Dan Bilzerian. No longer able to stand on the sidelines and watch all of those potential profits go to waste, on Wednesday the 36 year-old “Instagram King” announced the following message to his legion of followers:
“just bought a sh*tload of bitcoin. It’s so crazy watching that sh*t f**king go up it’s like, betting a bunch of money on the Super Bowl.”
That could prove to have been one of his costlier decisions, though, and despite Bitcoin rising further to a peak of around $2,800, by the weekend it experienced a major drop in its value all the way down to about the $2,000 mark. Interestingly, before the market correction Bilzerian’s announcement raised alarm bells amongst some of his followers, with one stating “If that’s not a sign of a bubble idk what is lol”, while another wrote “F**k I just sold some because of this, not even joking.”
Having been caught at the top of the latest cycle, Bilzerian will now have to just sit back and hope his speculative investment eventually pays off, and at the time of writing the currency has at least recovered a bit of its value, and currently costs $2,291 per Bitcoin.
This isn’t the first time the cryptocurrency has suffered a huge downswing in its price, and in 2011 its value plummeted by 90%, and in 2015 it also saw 80% of its value wiped off. Each time it subsequently bounced back stronger, though, and giving a piece of advise to potential investors, Samuel Lee from SVRN Asset Management explains:
“Bitcoin is still a nascent asset class, less than 10 years old, and its price is driven by speculators. Unlike stocks, whose prices go up and down with the business cycle, bitcoin prices go up and down in a much shorter time, usually these cycles last a year or so.”