Cryptocurrency analyst Willy Woo recently disagreed with the idea of going all-in on Bitcoin (CRYPTO: BTC), emphasizing the practical importance of fiat in the current world.
Don’t Go ‘All-In,’ Advises Woo
During an appearance on the All In Bitcoin With CK show, which aired September 3, Woo shared his views on Bitcoin investments.
They argued against the strategy of “going all-in,” which means investing 100% of one’s wealth in Bitcoin to prove one’s commitment to the cryptocurrency.
“Everyone’s yelling be all-in, be all-in, otherwise, you’re not a true Bitcoin or whatever, but that tolerance is different for everyone,” Woo said. “The practical reality is I live in a fiat world, and I need fiat to pay for things.”
Lessons During COVID
Woo said that they learned a life lesson after panic-selling Bitcoin during the COVID downturn.
“I used to have everything in Bitcoin, and I had like no more than 2 months’ runway in fiat to pay for expenses,” Woo said. “It was wrong thinking for me.”
“And so at that point, I’m like, always going to have fiat as a runway of 2 years. So Bitcoin crashes, who cares? Don’t need to sell. You know, if anything, I might be tempted to buy with a bit of the runway,” he added.
Woo stated that, while they hate fiat currencies, it is “practical” to have them as a buffer during challenging times.
Woo Justified Selling BTC In The Past
Woo, one of the well-known Bitcoin advocates, has emphasized the importance of periodic selling by Bitcoin whales to reduce supply centralization. They said that they prefer to reinvest their holdings in Bitcoin's infrastructure and contribute to the network's growth.
Woo has also previously suggested that Bitcoin’s value should be framed against the global economy rather than the U.S. dollar. They theorized that the apex cryptocurrency will be equivalent to the total world GDP divided by 21 million, i.e., Bitcoin's hard cap, with a margin of 50% on either side.
Price Action: At the time of writing, BTC was exchanging hands at $111,049, up 0.55% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the coin has gained 18.98%.
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Photo Courtesy CKA on Shutterstock.com
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
