Mark Yusko, a Multi-Millionaire Investor, Believes Bitcoin Is on the Rise
Source — Mark Yusko — Flikr
Mark Yusko is well-known for co-founding Morgan Creek Capital Management.
Yusko is an investor, hedge fund manager, and Bitcoin supporter. He believes that Bitcoin has and is replacing gold and is a better value store.
Yusko believes that very few crypto assets will survive in the long run.
There’ll be room for only a handful of protocols, but for every successful Coin, thousands will not survive, and he says most are completely useless, like Dogecoin.
He views these tokens as utility tokens with no underlying value or use case and will eventually disappear.
Bitcoin, according to Yusko, is the Gold standard and foundation of the cryptocurrency sector.
Mark Yusko:
“Yes, there’s room for a couple of protocols to survive, but thousands of coins and Dogecoin in that category are useless.”
Yusko stated that Bitcoin and Blockchain would generate more wealth than Web1 and Web2 for early adopters. The type of wealth that is unlike anything anyone has ever seen.
Yusko stated that Bitcoin is a digital form of Gold for institutional investors but is far more useful than the top precious metal.
He recommends that clients invest 1% of their portfolio in Bitcoin and 3% to 5% in blockchain start-ups that use the technology.
He expects Bitcoin to perform better than other cryptocurrencies in 2023 and makes the point that the most significant wealth created always happens by early investors who believe and understand something before the masses do.
Mark Yusko
“The most significant wealth is created by being an early investor in Innovation.
Making that investment requires believing in something before most people understand it.
You will be mocked, ridiculed & criticised for your non-consensus action.
It is worth it!”
You Can’t Ban Bitcoin
As a fund manager, Yusko has a strong understanding of Risk management and says that you can’t Ban Bitcoin.
Yusko has said for years now that people think that governments can ban Bitcoin, but he’s yet to see how this is possible because the protocol is decentralised and distributed.
So an outright ban isn’t very likely.
He says that the institutions can make the on-ramp and off-ramp into crypto harder through banking regulation and regulating exchanges.
He uses the analogy of the film Top Gun to explain his point.
Mark Yusko:
“You can’t ban Bitcoin.
It’s like squeezing the air in a balloon. The air will go someplace else.
But regulators can make the on-ramps and off-ramps hard to navigate.
I’m a big Top Gun fan, great movie.
You can send the Tomahawk missiles to blow up the airfield, right?
But Maverick found a way to take off on that short little runway.
We’ll still take off.
It’s just that the banks will bomb the runway.”
You Can’t Keep Denying an Inevitable Technology.
Mark Yusko believes that Bitcoin is an inevitable technology, but people are in denial about it, almost like how they were in denial about the Internet.
Today we accept the Internet as a part of our everyday lives, but in 2000, people said that the Internet would never be more useful than the fax machine, and the Internet was a fad.
He says telephone companies tried to kill off the Internet because they feared phone calls would become free, nuking their profits.
Which is what eventually happened.
Similarly, governments are trying to kill off crypto because Bitcoin attacks centralised control of money.
Mark Yusko:
“Bitcoin is as inevitable as the Internet when it comes to technology
I lived through 2000 and 2001 when everybody was like, this internet thing is a big fraud, and it’ll never be more important than the fax machine.”
I hear the siren calls, “the internet is a fad and won’t be around for much longer.”
We’re using the thing (Internet) right now that the telephone companies tried to kill.
Just like the government are trying to pass regulation to kill off crypto.
Why?
Phone companies didn’t want the competition.
If you’re already in this space, you’ve already won.
You Should Go All-In on Bitcoin, but Maybe Not All at Once.
Yusko believes that Bitcoin can hit $100,000 by 2024.
He believes that in early 2023 we will start to see Bitcoin heal. Companies going bust could lead to other crashes in the market.
There’s no way of knowing.
Yusko says he isn’t a day trader and isn’t buying Bitcoin right now.
His team keep asking when they’ll pull the trigger, but Yusko says he’s holding back for as long as possible to see if there is any more short-term pain ahead.
Mark Yusko:
“Am I buying Bitcoin? Here the answer is
No.
I’m talking a lot about Bitcoin, and I get a daily text from the other guys on my team.
They asked me if we could invest now.
My answer; Not yet.”
Yusko says he’s not a day trader and doesn’t expect to time the market precisely. He says no one can accurately time the market.
He says you should be patient and invest over a more extended drawn-out period to hedge your risk.
Yusko says you should pick a percentage of your income you’re happy to invest and buy over time.
Mark Yusko:
“I’m not a day trader; I’m a DCA person.
I like to Dollar Cost Average, and everyone in this space should pick a percentage that they want to invest, 1%, 2% or 5%, and you should only buy some at a time.
It would help if you bought it over time.
Buy it today, tomorrow, next week and next month but never buy it all at once.”
Yusko says that his fund work along the same lines as modern portfolio theory, where he only has 20% invested in an asset class and no more than 5% in a single stock.
He says concentration makes you rich, but diversification keeps you rich.
Yusko suggests you follow his fund’s strategy to position your portfolio.
Mark Yusko:
“The way our fund works was to have 20% of the fund in Bitcoin.
We set that out over several months.
We started in March 2019 and finished in July 2019, so our average entry price for Bitcoin was $4500.
We follow that same strategy with each new fund and invest over time.
That’s how those funds work, and it’s useful for people to manage risk.
Final Thoughts.
The modern portfolio strategy is something I’ve seen Kevin O’Leary adopt as part of his investment thesis.
In reality, people like Mark Yusko and O’Leary manage people’s funds, so they have to have exceptional risk management and be well-diversified if the market crashes.
For the little guys investing smaller amounts, I believe in concentrating your Crypto investments in a few areas instead of diversifying.
Coins can be pegged to the performance of Bitcoin, so if Bitcoin crashes significantly, it usually takes other smaller-cap tokens with it.
Yuskos’ advice is timeless.
He sees Bitcoin as a certainty.
As unavoidable as the Internet in 2000 when people debated its use cases.