Explained: Why Preston is doubling down on Bitcoin?

On today’s show we have assembled the TIP mastermind group for the 4th Quarter of 2020 to talk about why Preston is doubling down on Bitcoin?

Preston Pysh
It’s not that I have two picks. I just want to emphasize that my pick on the first quarter of 2020 was Bitcoin. It was at 8600 back then. Today, it’s at 15,260 for a 77% gain over the last 250 days. If you analyze that, that’d be 131%.

I am doubling down on that right now. I think that the next 12 months are going to not just be better, but way better than what we’ve seen since the previous selection. Back then, I suggested that I was looking for a price of around 20,000 by the end of the year. I think that that’s still possible. I kind of suspect it might be pushing into the first quarter of 21 for that previous all-time high to get hit. It might get there by the end of the year. We’ll see what happens.

My expectation for the end of 21 or 12 months from now is I think it’s going to be at 100,000 or maybe even higher. I really like this pick. I like the direction this is going. I like where the fundamentals are going. I like the people that are entering, the Paul Tudor Jones of the world that are now starting to pile into this and talk about it on CNBC.

I do want to emphasize something that I think is really important. It’s extremely volatile, to the point where if you don’t have the temperament to own something that’s very volatile, it’s probably going to scare the bejesus out of you.

If you do want to take a position in something like this, for all the technical reasons, and I’m not going to get into all the technical reasons here, unless you guys got questions about something specific, I can talk it, because I’ve done plenty of interviews that people can kind of go to if they want to hear my opinions on all the deep reasons why I like this so much.

Though I would recommend that a person if they do want to take a position in this and they’re worried about the volatility, do it through dollar cost averaging, where you say, “I’m going to buy a little bit over this period of time, call it three months, and I’m going to buy a little bit each week in whatever position size,” whether it’s 1% of your portfolio, 5% of your portfolio…

Fidelity has sent out an email recommending that people have 5% of their portfolio in Bitcoin, surprisingly enough, which I wouldn’t have ever expected something like that from a company like Fidelity. But they’re on board so my whole point in bringing this up as if you do want to take a position, I recommend that you do it through dollar cost averaging probably over a three month period of time to get yourself into the position, even though it’s super volatile. Yes, I’m very excited about it.

Stig Brodersen
I hope you’re right so don’t get me wrong when I’m saying this. One of the things that you’re so engaging on Twitter is also that you want to hear why you are wrong. I’m sure you had a lot of people tell you why they’re wrong. Some of them probably had good points. Some of them didn’t have good points. However, I don’t necessarily know if the mastermind group is the best place for you to get a lot of pushback and sort of like to provide the bad case.

I’m going to give you a very ungrateful question. I’m going to ask you, could you tell me, what is the best argument why you are wrong on this, call it 7x return that we’re going to see for 12 months? There must be a really good bear case. As you know, Preston, we really like here on the show to argue from both sides so please be your own devil’s advocate.


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