The market rush that happened in the two-year span between 2020 and 2021 has attracted a lot of new investors into the cryptocurrency world.
And many of them were able to see their investments grow exponentially as Bitcoin and other cryptocurrencies increased in value day after day during the Covid struggle.
However, the investors who joined the bandwagon late might have seen their crypto investments drastically reduce.
Since its highest point in November 2021, crypto has seen its global market cap decrease from nearly $3 trillion dollar to today being worth “only” $970 billion.
With the world coming to terms with the post-pandemic life, the need for storing value in assets like crypto lessened. To add to that, nations worldwide began preparing for an economical recession following the lockdown days.
Today, currencies like Bitcoin and Ethereum suffer drastic hits from government branches, including The United States Securities and Exchange Commission – the government body responsible for the escalation in interest rates in the American economy.
One of the investors who have suffered significant losses during the crypto winters is the superstar rapper “Lil Baby”.
In a conversation with music journalist Sway, on his show “Sway’s Universe” – Lil Baby opened up about his crypto ventures in the past.
During the radio show, Sway and the rapper talked about several things, including the young artist’s career and his quick rise to fame in the hip-hop scene.
Recalling previous statements about investments – Lil Baby went on to talk about his cryptocurrency investments and how the results were not what he anticipated.
While the younger rapper showed confidence in investing, calling it a safer type of gambling, he also confessed that it was a learning experience.
“I actually lost millions investing in crypto,” Lil Baby told Sway. “I made money in crypto before I lost it.”
When asked about his current approach to cryptocurrency, he stated that he was “on the back end now.” Even though claiming he has his own crypto team, he remarked that their unwavering conviction in the technology had not persuaded him.
Despite losing a significant amount during the “crypto winter”, Lil Baby claimed to be holding on to his assets, hoping that they come at their previous value.
Why Investors Should Hold On To Their Crypto
Cryptocurrencies are on the break of a revolution. As Web3 technology evolves, it seems to be a given that digital assets can and will present value in the future of the people.
Talking about Bitcoin – the “dream outcome” for the world’s largest cryptocurrency is to one day reach gold levels of importance for the investment sector.
Today, gold is seen as a safe haven to store assets during political turmoil and instability in fiat currency.
During the pandemic, Bitcoin for the first time became an option for investors who were looking to store their assets in a more lucrative and less risky asset – when compared to fiat currency amidst the chaos that ensued during the Covid-19 months.
Optimists believe that one day, Bitcoin could reach the market capitalization of gold. Today, Bitcoin sits at around $400 billion in market cap, while gold stands at a whopping $11 trillion.
To put it into perspective, if the overall market value of bitcoin ever surpassed that of gold, one BTC would be worth approximately $400,000.
