An early bitcoin investor says the best time to buy is when no one is talking about it – and warns it’s not the first crypto bubble | Currency News Financial and Business News

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The ultimate time to buy bitcoin is when no one is talking about it, according to one early adopter.

“The best time to buy bitcoin is whenever there is blood on the street, everyone panics, and nobody talks about it,” the investor, who prefers to remain anonymous, told Insider in a phone interview from Manila, Philippines.

In 2013, he made an initial purchase of 2.5 bitcoins from a seller who went by the name “Mang Sweeney” on LocalBitcoins.com when the cryptocurrency was trading at $ 100 a penny. “Mang” denotes a sign of respect for the local language in the Philippines.

At the time, the platform allowed for face-to-face meetings, after which the vendor would transmit the cryptocurrency on the spot via their laptop or mobile phone. Mang Sweeney was already trading bitcoin when it was worth $ 10 a coin as speculative buying and selling was popular even then, according to the anonymous buyer.

Still, online interest in bitcoin in 2013-14 was nowhere near current levels. A chart below shows how Google’s search for “bitcoin” in the Philippines has risen steadily since that time, then peaked in late 2017 when it shot its price to its highest level ever. It declined throughout 2018, but has returned in the past year.

Read more: A global macro investor turned engineer breaks down why bitcoin is so volatile – and shares 3 reasons why it remains bullish about the digital asset

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“People forget that it’s not the first bubble,” the investor said. “Until people understand the technology of it, it will always be a speculative asset.”

The early bitcoin buyer said he is not advising friends and family to trade the token when it is stuck in bubble territory. “When no one wants to touch it, that’s when you buy it. Not when people talk about it,” he said.

Bitcoin’s decadent nature discourages its use of real money, according to him. It lost 16 bitcoin in the Japanese cryptocurrency exchange Mt. Gox, one of the few exchanges that early adopters could trade on. It closed abruptly in 2014 following its collapse after hackers apparently robbed the exchange. Nearly 850,000 bitcoins belonging to investors were lost.

Read more: This day trader made the biggest trade of his career exploiting the momentum around bitcoin. Here’s how it did – and its 4-step strategy for identifying speculative themes for trading.

Anyone who speaks up the $ 100,000- $ 150,000 level, according to him, actually unloads their bitcoin investments bit by bit saying that he will reach a certain price because some of them have already accumulated large sums.

“The only reason I would tell people to dabble in it is because it’s important to understand how it works and how to look after it. If you don’t know your way around passwords or simple two-factor authentication then you’re going to get cream. People will steal your bitcoin, “he warned.

But voices are warning investors who are starting to consider bitcoin as digital gold.

“For bitcoin to be considered a portfolio and become an irrecoverable asset, similar to gold, the asset would need to improve the risk-return profile of that portfolio,” said Gerald Moser, chief market strategist at Barclays Private Bank. “This seems like a tall order.”

While it is almost impossible to predict expected returns for bitcoin, its volatility makes the asset almost “irrecoverable” from a portfolio perspective, he said.

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