Large institutions are adopting Bitcoin: JPMorgan, Goldman Sachs, and hedge funds galore. According to many proponents in the Bitcoin industry, including Ziad Abdelnour, the President and CEO of Blackhawk Partners, Inc., who believes this will only increase.
“This is an asset class that’s worth considering,” Abdelnour told Justin O’Connell on The GoldSilverBitcoin Show. “That’s been tested by a lot of people, institutions, hedge fund managers, private investors, large private investors. And it’s here to stay. It’s not going anywhere. Yes, there may be some regulations in the future, but so what? Everything is regulated to a certain extent. So you don’t play the market, because it’s going to be regulated?”
Abdelnour points out that, anyone who has held Bitcoin for four years or more, has made a fortune. “I’m not talking about 10, 20% percent,” said Abdelnour. “I’m talking, 300%, 400%, 1,000%, etc, depending on the time you acquired the bitcoins.”
He says, like every asset class, you have to buy and hold. “You can trade, but I believe you can make much more money by buying the dips, holding, and having the balls to wait.”
Abdelnour says it’s an asset class that’s here to stay. Therefore, he allocates a significant amount of his capital to it..” I’m planning to stay no matter what’s happening in the future.” Indeed, he’s rarely sold bitcoins.
“Even at the worst times,” he says. “I don’t allocate all my portfolio in Bitcoin, but a significant amount. Bitcoin is not for the faint of heart. It’s for people who believe in it. I believe in it, because of its whole decentralization process. It’s about freedom for me. Bitcoin is about freedom. It is about taking control of your life. It means much more than a speculative instrument to make money. It’s been speculative, and it is still to a certain extent, but it’s going to become, with time, less and less speculative and more and more traditional.”
Whilst the average holding of Bitcoin in portfolios today is perhaps 2-5%, says Abdelnour, he sees this increasing and people adopt Bitcoin as an asset class. “Despite all the negative stuff that they write on Bitcoin, about regulation, about it’s a scam, it’s not. It’s here to stay. More and more people have Bitcoin as part of their portfolio along with typical stocks, bonds, real estate, gold, and commodities. The percentage of Bitcoin in your portfolio is going to become more—maybe as high as 10%.
Abdelnour knows some people who have 100% of their portfolio in Bitcoin. “That’s pretty much too much,” he says. “But, more people are going to learn about it. There are a lot of courses, a lot of experts teaching it all over on YouTube channels, etc. People are learning about it very fast.”
Abdelnour says banks will have to adapt. “Right now, they are afraid. And they view it as a threat.” He notes how, three years ago, Jamie Dimon from JP Morgan called Bitcoin, a fad. “Now he basically took the opposite direction completely.” Same thing with other institutions.
“It’s bigger than them,” says Abdelnour. “The movement is bigger than them. They will adapt. They will not let these platforms compete with them. They will crush them. They will create their own funds. They haven’t yet. But, they will create their own models to embrace Bitcoin.”
He says banks are not leaders. “Banks are followers. Entrepreneurs are leaders. These guys who started these platforms are the leaders,” said Abdelnour. “They will follow. They will adapt. They’re not going to go out of business. If you can’t beat the trend, join it. And they will join it. But, I’m not worried about banks. I’m worried about the individuals making money, obscene money, and acquiring wealth, and acquiring more freedom. That’s the key.”
Bitcoin is pure capitalism, says Abdelnour. “It’s pure decentralization. It’s pure freedom. I can go into a historical thing: how the Federal Reserve started back in 1913. I wrote books about that. Read my book, Economic Warfare. Bitcoin came out of this situation. Things don’t come by mistake in a vacuum. Things come because of factors that happened that made smart people come up with things to outsmart the system. It’s all about outsmarting the system. You come up with products, services, asset classes to outsmart the system, because the system has become very restrictive.”
Check out Ziad Abdelnour on The GoldSilverBitcoin Show: