Selling Bitcoin is like "gambling in a very unfair casino," according to Adam Back, CEO of Blockstream and an early supporter of Bitcoin. Back stated in a recent interview with crypto financial services company Unchained that traders trying to time the market are always at a disadvantage.
Back stated that in the early stages of Bitcoin's development, the price of Bitcoin showed "exponential growth but extreme volatility."
He pointed out: "If you try to sell Bitcoin in anticipation of a market correction, your chances of success are very low because the overall trend is exponentially upward."
"The trend of exponential growth is upward, so selling with the expectation of a market drop is a very disadvantageous trading strategy."
Bitcoin is known for its extreme volatility and bull-bear cycles, having experienced significant adjustments of over 80% multiple times, but steadfast holders ultimately benefit: over the past 10 years, BTC's total return has exceeded 39,000%.
Back believes that anything growing rapidly will experience extreme volatility before it becomes fully mainstream.
This cycle may not have shown diminishing returns.
Back mentioned that companies are not only directly acquiring Bitcoin but also providing indirect exposure through instruments like convertible notes, and the potential for Bitcoin price increases still exists. Moreover, sovereign wealth funds are showing increasing interest in Bitcoin, such as Abu Dhabi's investment in BlackRock's Bitcoin ETF.
Governments are also beginning to get involved in the crypto space. Former US President Trump signed an executive order to establish a strategic Bitcoin reserve, and New Hampshire has recently written such a reserve into law, while Texas has also passed a bill allowing for the establishment of a state Bitcoin reserve.
