A prominent crypto analyst and macroeconomist says that the time of investing in Bitcoin is over. Instead, it shifts to wealth preservation and risk-adjusted returns.
Alex Kruger, founder of Aike Capital asset management and advisory firm, recently started a Twitter debate by saying, “Nobody will ever get rich investing in Bitcoin ever again.” It’s not too late. The boat has already sailed. He stated that only those who sell related services will make a profit from Bitcoin.
Kruger acknowledged that his first tweet was an experiment in social media, but he maintained that the message is still true: “People shouldn’t buy Bitcoin to get rich anymore.” This boat is now gone. Bitcoin can now be used for wealth preservation, attractive risks-adjusted return, trading, and hedge against the fiat system.
Kruger was asked by a user to comment on Bitcoin’s potential return of 10x in just 3-5 years. However, Kruger stated his support for the cryptocurrency, but considered a return of 10x too optimistic. Kruger stated that 10x is too high, but 5x is possible. He said, “I believe there is major upside to this cycle. However, 10 bagsgers is too much for me.
Kruger stated that trading with greater leverage is not the best way to increase returns in crypto markets. However, it is important to trade assets with greater volatility when discussing strategies to succeed. Liquid caps that are less liquid tend to be more volatile. Microcaps are most volatile.
He said, “If I was starting over, I would focus completely on DeFi microcaps. Heavy FA, some macro (for context), a bit TA (on BTC alone, for context), and coding for faster execution. No stops, long only, unlevered, diversified bets.
Kruger’s insight focuses on the changing role Bitcoin plays in the investment landscape. It also provides valuable advice to those who want to maximize their returns from the crypto market.