„Bitcoin is being used to protect investors from a global crisis in which the credit guarantee fund wouldn’t even have the money to cover anything.
For many, Bitcoin is an „adventurous“ investment that can offer various risks. However, with the maturation of the market and what Bitcoin has proven to achieve so far, for some the fact of not investing in Bitcoin is even more risky. During his participation in an interview with Radio Bandeirantes, Lucas Ferreira, Paxful’s Brazilian manager, said that it is „adventurous“ not to have Bitcoin in your investment portfolio.
„After studying everything I have studied about Bitcoin Evolution and understanding the global market as it is, I think I would feel adventurous if I did not have at least a portion of my investments in Bitcoin. I would be giving up having a great asset in my portfolio“.
In the last few years Bitcoin has had a very interesting evolution, going from the promise of becoming a millionaire, as it happened between 2016 and 2017, to an asset with a completely different use since then. Today, the currency is seen as a reserve of value and many bet that it will become a form of reserve for the treasuries of large companies.
For the manager of Paxful, this is a very valid thesis, with Bitcoin being a reserve against crises, helping to protect from moments like the ones we are living now, even with volatility.
„Bitcoin is a long-term reserve asset, an asset to protect against crises and inflation. So it is an asset that has to be in the portfolio of an investor, even if it is a small part for those who are conservative. Just like gold, it is an asset that is there to protect the rest of your portfolio in moments like the one we are now“.
How much would I have if I bought US$ 1.000 in Bitcoin today?
During the interview, one of the listeners of Rádio Bandeirantes sent a curious question: „If I buy R$ 1.000 in Bitcoin today, how much will I have in exactly 12 months?
This is a very common question among beginners investors, many who don’t understand that the asset has a lot of volatility and variable income. It is impossible to guarantee fixed income with Bitcoin.
„This is a great question, because what I can answer is: I can’t guarantee you how much you will have in 1 year. In one year, Bitcoin may be worth double, triple or five times what it is worth today. It can also be worth half as much“.
However, at the present moment, Bitcoin has proved to be an asset with a return in 100% of the cases (in case the investor has not sold after the purchase).
„If we take the data, there are few days in the history of Bitcoin that you would have bought and today you would be in the loss. Especially today with the historical high, it is difficult not to make money with Bitcoin“.
„Bitcoin is the guarantee fund of the guarantee fund“.
In another interesting moment of the interview, one of the listeners asked if Bitcoin has a Credit Guarantee Fund, a type of system used by banks to guarantee the investment of their clients. But as Bitcoin was born to break with the traditional financial system, not only does it not have a guarantee fund, but in theory it was designed not to need something like that.
„Bitcoin is not covered by the credit guarantee fund and one of the investment theses in Bitcoin is that it is the credit guarantee fund of the credit guarantee fund.
Bitcoin is being used to protect investors from a global crisis in which the credit guarantee fund wouldn’t even have money to cover anything. So it is worth having at least 1% in Bitcoin in case the credit guarantee fund breaks“.
Although it seemed difficult, Lucas recalled that during the 2018 crisis, the credit guarantee fund did not guarantee so many things.
„This is not a distant reality, in 2018 similar things happened, we had the government saving the banks…but they didn’t save people. Bitcoin is an asset for you to protect yourself from that“.