Popular cryptocurrency analyst Benjamin Cowen said that investments in bitcoin are made for the future, therefore, at the macroeconomic level, bitcoin is a long-term player.
Investment strategist Benjamin Cowen said that despite short-term price fluctuations, bitcoin and the cryptocurrency market will continue to grow. He explained that he studied bitcoin at the macroeconomic level and can say with confidence that after several months of volatility, the cryptocurrency will show steady growth for several years.
“It is my understanding that bitcoin generally tends to rise over time. Obviously there is a lot of great news, the user base is growing and so is the asset class. It will most likely become an asset class that will skyrocket over the next few years and this decade,” Cowen said.
The analyst took the current return on investment in bitcoin as the basis of his research – the so-called return on investment ratio (ROI), illustrating the level of profitability or loss of a business, given the amount of investments made in this business.
“In order not to be unfounded and to give you an idea of how to recognize growth in a more practical way, you need to remember that two years ago the price was 1/10 of today. Then you need to look at some of the long-term moving averages or ROIs. You will immediately notice that this is a three-year return on investment. Historically, it has not fallen below one.
Cowen recalled that investments in cryptocurrencies are made for the future and this confirms at the macroeconomic level that bitcoin is a “long-term player in the market.” He added that when you look at bitcoin as a class, time is always on the side of investors. This applies to all cryptocurrencies.
“Every year you can face losses and high returns. We are now sitting with an annual loss of ROI, just like in the summer of 2020. During those two years, you had phases where you experienced drawdowns in the bitcoins you bought two years ago. Think back three years. It’s very hard to find a time when you weren’t breaking even or in the black. And your four-year ROI has historically always been above one.”
Apple co-founder Steve Wozniak invested heavily in bitcoin last week and expects cryptocurrencies to rise due to high public interest in them. The CEO of Real Vision believes that the change in the value of bitcoin against the backdrop of foreign political tensions in the world indicates a readiness for the growth of the BTC rate. At the same time, the former chairman and CEO of investment bank Goldman Sachs wonders why the cryptocurrency market is not growing against the background of the “bloat” of the US dollar and the tense political situation.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
