Billionaire Acquires 10,000 Bitcoins, Says Blockchain Is the Future
In an interview on May 3, 2018, Wensheng Cai, a successful domain flipper and entrepreneur, told fellow entrepreneur Wang Feng, the founder of Mars Finance among a handful of other associations, that he has finally acquired 10,000 bitcoins.
Achieving a Personal Target
The chat session featured discussions on numerous topics both within and outside the world of blockchain. At the current price of bitcoin, Cai’s holdings amount to ~$98.5 million.
The value of bitcoin continues to increase as institutional investors flood the market in anticipation of a bull run.
Cai stated that the 10,000 bitcoins represent the achievement of a personal milestone. Before the purchase, he had only one bitcoin, but he wanted a more significant stake in the market. This decision to acquire more happened when he realized that blockchain and bitcoin held the keys to the future.
“At the time of the peak in December , I personally thought that the price was a bit high and I did not buy it. Later, with the decline in prices towards the end of January, I continued to build positions, continued to buy. Now, this small goal has basically been achieved.”
At the start of 2018, the crypto market, in general, was struggling to attain the heights set by mid-December 2017. In the midst of this bear run, Wenshang made his move beginning at the end of January. He continued to buy more bitcoins even as the price dropped to below $6,000 in February 2018.
In for the Long Hodl
Cai also explained that he is in for the long hodl. During the interview, he offered a clear distinction between investing and speculating. According to him, being able to detach oneself from speculating and focusing on investing is the key to succeeding in the crypto market. He went on to say:
“I think the biggest difference between investment and speculation is that when you buy a stock or a digital currency and the price keeps falling, your mentality is more or less positive, and you can make up short positions. That’s investment and vice versa. Getting deflated and complaining about price capitulation is speculation.”
Since April 2018, bitcoin has been on a resurgent price increase which has carried on into May. Charlie Shrem, the founder of the Bitcoin Foundation, even declared that May would be last month that bitcoin would trade below the $10,000 mark.
Blockchain is Like the Tech Boom of the 90s and 2000s
Cai also made the standard comparison that the crypto market is similar to the internet bubble of the late 90s and early 2000s. He identified a pattern of boom and bust cycles within the market that mirrors the tech bubble saying that many projects will fail and only a select few will survive.
He went on to say that what mattered most was betting on the right project. When the tech bubble burst, a new generation of internet commerce was born. Cai believes that the right crypto projects can yield returns that are beyond imagination.
On the subject of the altcoin market, the internet entrepreneur said that he was invested in about a dozen cryptos. He listed projects like Cortex, Zipper, Dxchain, and Ontology as among some of the startups in his investment portfolio.
Cai then said that some of these investments had earned him reasonable returns while others have resulted in losses. He, however, admitted that the nascent market was still maturing and thus, there are still little commercial applications for many of the projects. He urged investors to exercise patience, saying that in the long run, the industry will become mostly profitable.