Opinion | Long-term investment in Bitcoin is the best strategy to gain returns

I think that for Bitcoin, the best investment strategy is to steadily increase holdings over the long term. Of course, if a user is good at short-term trading, then using a trading strategy is also a feasible strategy. But for the vast majority of investors, I think the best holding strategy is to use a fixed investment method to purchase for a long time.

The current adjustment is obviously the result of excessive speculation and a large amount of leverage in the cryptocurrency market. The fundamentals of the so-called cryptocurrency market development have not changed. As the absolute leader in cryptocurrency, Bitcoin will continue to maintain its leading position in the entire cryptocurrency industry.

In the short term, as a virtual commodity, the market demand for Bitcoin is also in line with the general trend of demand for commodities. Currently, commodities are rising, so the rise in Bitcoin prices is in line with the current general trend.

In the current stage of adjustment, despite the sharp decline in the overall market, some buying behavior in the market is still very obvious. We can see from the table below that Coinbase users are buying a lot and flowing it out of Coinbase. Obviously, these users buy Bitcoin for the purpose of long-term holding.

If we compare this trend with the recent buying and selling trends, we can see the profit of users in different regions buying and selling Bitcoin.

The buying and selling of Bitcoin shows that holders have different views on Bitcoin. Obviously, the vast majority of forces in the market still regard Bitcoin as a trading product. This can be seen from the recent sharp decline in the market and the large-scale use of leverage. However, another group of users adopts a buy and hold strategy. I think for most investors, holding Bitcoin for a long time will get the greatest benefits of Bitcoin. I have explained this in a series of previous articles.

A popular view now is to compare Bitcoin to digital gold. But I think Bitcoin is far superior to gold in all aspects. Another metaphor is to compare Bitcoin to Amazon in the Internet era. But I think Bitcoin is also far superior to Amazon's stock. Bitcoin is a completely distributed, fair, globally accessible, open currency network. Anyone can fairly obtain Bitcoin by participating in mining or buying and selling. The total number of Bitcoins is only 21 million. Now anyone has the opportunity to obtain part of this total amount. This is similar to anyone being able to obtain Amazon's stock during its development. If you hold it for a long time, you can get the benefits that Bitcoin can generate in the future. The total amount of Bitcoin is limited, that is, the supply is limited. When the market demand remains constant or even continues to grow, its unit price will definitely continue to grow. This is determined by the most basic supply and demand relationship in economics. Judging from the current development trend, the acceptance of Bitcoin is growing rapidly around the world. For example, on Monday (April 26) in the United States, two very influential news are that Chase Morgan began to provide Bitcoin fund services to its users, and the other is that a professional athlete in the NFL began to use Bitcoin to receive all his salary payments. Starting this week, it is the quarterly earnings season for US listed companies. I would not be surprised if more listed companies announce that they have started to hold Bitcoin.

In the long run, holding Bitcoin is one of the best coping strategies in the current market context of massive over-issuance of the US dollar. The trend of over-issuance of the US dollar will not stop in the foreseeable future, so the basic elements for the rise of Bitcoin will continue to exist. For ordinary investors, holding Bitcoin to ensure that their assets are not depreciated is therefore the best coping strategy.