Chinese crypto billionaire Zhao Dong offered up an optimistic Bitcoin price prediction this week, and it’s no coincidence that a stampede of buying followed.
That’s because Dong has the chops to talk about price in a way that few others can. He lost big money in the Mt. Gox fiasco, and in 2014, he lost nine thousand Bitcoin in a Bitcoin mining endeavor.
That would drive weaker hands to fiat or at least precious metals, but Dong bought more Bitcoin and eventually made a fortune with the flagship crypto.
“Mt. Gox was ten times worse than what we’re going through now,” Dong said. “It could have spelled the end for Bitcoin, but those of us who took the chance and held on did well.”
In recent days, Dong has taken to Chinese social media, saying that while the price of Bitcoin may not have bottomed, that doesn’t change the fact that it will reach $50,000 by 2021, a roughly 12-fold increase.
Dong said his conviction comes not only from Bitcoin’s fundamentals, but also from the changing attitude toward crypto among those in the financial world and a growing public awareness of crypto in general.
Dong joins other crypto luminaries, among them Crypto.IQ’s Charlie Shrem, in pointing out that the fortunes are made, not by joining the FOMO when Bitcoin’s price spikes, but through buying the dips.
“It’s true that what’s worthwhile often isn’t easy, and that’s also true for Bitcoin,” Shrem said. “When the market is a perfect storm of FUD and falling prices, you have to have the stomach to keep going, to not jump ship. Those who can weather a bear market eventually will be rewarded with remarkable gains.”
The two recently met up at the Crypto Intelligence Conference in Las Vegas to network with crypto investors and discuss strategies that enable speculators to profit no matter the market conditions. Both remain strongly optimistic about Bitcoin’s future and say the smart money is taking advantage of Bitcoin’s relatively low price.
Shrem says that while he doesn’t think the bottom is in, that just means this is a buying opportunity for crypto investors who understand this market and the cycles it goes through.
Their sentiments echo other, well-known figures in the crypto space, who also say the future for Bitcoin is bright. Among these are Tim Draper, Tom Lee, John McAfee, and Mike Novogratz. McAfee has said he expects Bitcoin to reach $1 million by 2020. Draper’s prediction is a bit more modest, coming in at $250,000 by 2022.
Dong, one of the biggest OTC traders in China and a substantial shareholder of Bitfinex, also emphasized that the time to buy is now, though he, like Shrem, thinks the bottom may not be in. Using China’s Weibo social media platform, he told his followers to continue to steadily acquire coins each time Bitcoin’s price drops lower.
“In the bull market, I don’t persuade people to buy Bitcoin, because it seems easy to make quick money but in fact, it is not,” Dong said. “Now, I start to talk people into buying Bitcoin. Those who make truckloads of money do not have a very short-term speculative driven investment mindset.”
Sounds like Dong and other crypto heavyweights embrace Warren Buffett’s advice to be “fearful when others are greedy and greedy when others are fearful.”