Large funds are restricted by rules on profitability and Portfolio balance – you can be forced to sell Assets such as Bitcoin. Assets that have the potential to produce generous profits.
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Fund managers sell due to Diversification and profitability bottlenecks
So far, the rules for the share, would have resulted in the selection and the fact that Fund managers have to indicate in their Reports the profitability of large funds have some of the biggest winners missed. This view, for example, Jason Zweig in the Wall Street Journal expresses.
And if you need to invest in Bitcoin and crypto – Assets, you could come too late, when BTC has reached its peak. Crypto-commentator, Ceteris Paribus, could run it then that you buy a Bitcoin for 1 trillion dollars – if BTC is already established.
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The rules for the stock selection lead to paradoxical situations. With regard to small companies Fund, the need to leave Amazon (AMZN) after the stock price fell.
AMZN has been catapulted from a valuation of $ 300 million to over 13 billion dollars and the compensation, and regardless of a single share, the Fund had to sell.
On the other hand, personal stocks have led the selection, and in possession of some of the biggest success stories. But these investors had to wait for grueling hours to reach at the end of a wage-price – no different than Bitcoin investors.
Funds to buy Bitcoin, if it is “established”
The funds will flow, however, once an asset has reached its peak, as in the case of Jack Henry & Associates, Inc. (JHNY). For decades, the stock was in the hands of insiders and small investors.
It was only when it was cheap, a fin means. Meanwhile, more than 94% of the JHNY in the hands of investors, but that is exactly the have not kept the asset in the years in which its value has been temporarily destroyed.
In Bitcoins case, the institutional investors, as the asset has been traded already to “moon prices” well over $ 10,000. However, no Fund would be kept in BTC, if he were fluctuated from 30 $ to 2 $ or of $ 1,000 to $ 100.
It is possible that investors have to go to much higher valuations – and why not, when Bitcoin has reached astronomical prices?
Until then, a more expensive Bitcoin could also have a touch of Prestige. True to the Motto: “He is expensive, so it must be worth something.”
I think #Bitcoin might in the future behave like a Veblen good.A Veblen good is something that is desirable, because of its high price. Examples are; Diamonds, Ferraris, Gucci, etc. Imagine when the #BTC price is above $1,000,000.Wants millionaires use Bitcoin to flex?— The Moon (@themooncarl) December 4, 2019
Bitcoin could be at $ 1 Million per Coin is a sought-after and popular. Finally, Bitcoin has the current prices are also more legitimacy as to his early days when he was still a novelty.