Economic crises are very hard to overcome for average people. However, the reality is different for the wealthy, whose fortune tends to rise in difficult times.
Warren Buffett, one of the most recognized entrepreneurs in the world, once said that “in times of crisis, some people cry and some others sell tissues.”
In a crisis there are many opportunities, and at times like these the masses panic because of the fear of losing everything, while the rich look for where the profitability is.
Jim Breyer is a billionaire investor who remains amply optimistic about Blockchain-based businesses, and part of his portfolio is invested in Ethereum, one of the cryptocurrencies that have suffered the most by the recent fall in the digital asset sector _ which have lost more than 80 percent of its capitalization so far this year.
Breyer is a fine example of what big investors are doing by taking advantage of the low prices in the digital sector. In fact, the so-called ‘whale’ investors _ term frequently used to describe the big money crypto players that show their hand in the digital market _ have accumulated more Ethereum this year than at any other time in history.
“These cycles keep happening every decade or so,” Breyer said, referring to the repetition of technologic booms-and-busts. This seasonality is, he said, “inevitable.”
Blockchain research unit Diar analyzed more than 5,200 Ethereum addresses to discover that cryptocurrency whales who trade regularly are sitting on 80 percent more ETH than the start of the year.
Actually, these whales now own over 20 million ETH ($2.16 billion USD at their current price of $108 per coin), roughly 20 percent of Ethereum’s circulating supply. This represents a four-fold increase in ETH held by top cryptocurrencers since January 2017, when they owned just 5 million.
Ethereum addresses belonging to cryptocurrency Exchanges saw a huge increase in activity from ETH traders in November, particularly in the last two weeks _ when the market plunged dramatically.
In total, last month saw traders withdraw approximately $470,000 USD worth of ETH from top Exchanges, while overall deposits exceeded 16 million ETH ($1.72 billion dollars).
Over the past two months, top Ethereum addresses witnessed a 270 percent increase in ETH balances against the previous quarter. This would be the first time in almost two years that the cryptocurrency shows such numbers.
This is a clear sign that the huge loses in the capitalization of the digital market are not scaring the big investors at all, but quite the opposite: for them, this is the best time to invest and let the big profits come later.
“So many of the very best computer scientists and deep learning PhD students and post-docs are working on Blockchain because they have so much fundamental interest in what Blockchain can mean,” Breyer said. “You don’t want to bet against the best and brightest in the world.”
By Alejandro Cortés