Crypto Analyst Alex Krüger: The Era of Getting Rich from Investing in Bitcoin Is Over
March 31, 2023According to a prominent macroeconomist and crypto analyst, the era of getting rich from investing in Bitcoin may be over, as the cryptocurrency shifts towards wealth preservation and risk-adjusted returns.
Alex Krüger, the founder of asset management and advisory firm Aike Capital, recently sparked a debate on Twitter by stating, “Nobody will get rich investing in Bitcoin ever again. It is not early. That boat has sailed.” He explained that the only people who will profit from Bitcoin are those selling related services.
Although Krüger admitted that his initial tweet was a social experiment, he maintained that the message still holds true: “People shouldn’t be buying Bitcoin to get rich any longer. That boat has sailed. Bitcoin is now for wealth preservation, attractive risk-adjusted returns, trading, and hedging against the fiat system.”
When a user commented on Bitcoin’s potential for a 10x return in 3-5 years, Krüger expressed his bullish stance on the cryptocurrency but considered a 10x return too optimistic, stating, “Indeed, I’m openly very bullish bitcoin. 10x is too much imo, 5x possible.” He added, “I think there is major upside in this cycle. 10 bagger too much in my opinion, however.”
Discussing strategies for success in the crypto market, Krüger advised, “The best way to increase returns is not to trade with higher leverage, but to trade assets with higher volatility. Less liquid caps are more volatile. Microcaps are the most volatile.”
He elaborated, “If I were starting again, I’d focus entirely on DeFi microcaps. Heavy FA, a little macro (for context), a little TA (on BTC only, for context, never on microcaps), plus coding for better/faster execution. Long only, unlevered, diversified bets, no stops.”
Krüger’s insights highlight the changing role of Bitcoin in the investment landscape and provide valuable advice for those looking to maximize their returns in the crypto market.
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