John McAfee eases worries of long-term investors

Leading cryptocurrency proponent John McAfee has spoken out to ease the collective mind of cryptocurrency community.

In a comforting statement on his official Twitter profile, the tech legend said long-term investors have “no concerns” regarding the recent price slump.

Many crypto hodlers turn to the investment guru for advice when the waters turn rough.

Not only has McAfee dished out some positive words of wisdom for those concerned about the decline, he also reassured those who are in for the long haul by stating that his previous prediction, that Bitcoin will one day be worth $1 million each, “will be at the extreme low end of the probability curve.”

Mr. McAfee wasn’t able to soften the blow for the short-term investors in quite the same way though.

He warned that they should only “hope for mediocrity at best.”

After desperate pleas for reassurance in a comment thread on one of his posts, McAfee tweeted:

“If you are a long term investor you will have no concerns. If you are short term, I can give you no advice, other than short term investers can hope for mediocrity at best, and oblivion at most likely. Great wealth can only be obtained by investing in the future – 2 to 5 years.”

The $1 million Bitcoin gamble

In a follow-up question to his response, John McAfee was asked if his $1 million bet was still on.

The $1 million Bitcoin gamble

In a follow-up question to his response, John McAfee was asked if his $1 million bet was still on.

Last summer the McAfee Anti-virus software creator predicted that Bitcoin will be worth $500,000 by 2020.

In a bullish display of confidence, Mr. McAfee said that if he was wrong, he promised he would eat his own genitals on live TV.

Then, in November 2017, without provocation, he upped the ante on his bet by saying Bitcoin will reach $1 million by 2020.

He said his original prediction was based on an outdated model, and his latest prediction saw far larger gains in store.

John McAfee stood by TV dinner promise, even after doubling the predicted value, and is still standing by it today saying he “cannot possibly lose.”

When asked if the bet was still on, despite the recent price drop, McAfee confirmed nothing had changed, saying:

“Absolutely. It is clear now that I cannot possibly lose. 1 mil will be at the extreme low end of the probability curve.”

What have cryptocurrency prices dropped this week?

A number of factors have weighed on the price of cryptocurrencies recently.

A series of bad news in the media has caused the spread of FUD (Fear, Uncertainty, and Doubt).

The first big hit came last week when news broke that the Mt. Gox trustee had sold off a large amount of Bitcoin and Bitcoin Cash holdings.

Although this sell-off took place from December to February, details only emerged last week, causing investors to panic.

The Japanese Mt. Gox trustee, nicknamed the “Tokyo Whale” has now also been blamed for causing the price drops in early February by flooding the market and devaluing the currency.

Mt. Gox closed in 2014 and filed for bankruptcy after losing around 850,000 bitcoins.

The now-defunct exchange’s trustee has been selling large amounts of crypto that the exchange still owned in order to pay back creditors.

The big hit this week, though, has come from Google.

The search engine giant, who also happens to run the world’s largest digital advertising network, announced it was banning cryptocurrency-related advertising, including wallets, trading advice, and initial coin offerings (ICOs).

Speaking to CNBC on Thursday, Thomas Glucksmann, head of APAC business development at cryptocurrency exchange Gatecoin, said:

“The sell-off was triggered by a number of factors, notably, weariness over increased regulatory scrutiny of ICOs, the Mt.Gox bitcoin dump and what seems to be some heavily liquid traders pushing for future buy-back opportunities,”

“These bear signals have subsequently spooked many new crypto investors who are now looking to cut their losses.”

Fears of regulatory crackdowns

Over the last few months, cryptocurrency enthusiasts have been living with the constant threats of new, tougher regulations.

Regulators all over the world have been warning they intend to take a harsher stance in the sector.

The Bank of England Governor, Mark Carney, recently called for greater regulation of cryptocurrencies in the UK.

In Japan earlier this month, regulators cracked down on several crypto exchanges, even shutting down some entirely.

Patience is the key..?

You may assume that the key to riding the storm is having a little patience, but according to McAfee, it’s all about looking toward the future:

“This has nothing to do with patience. This has to do with the future. If you know a new movie is coming out in 18 months, it would be stupid to start looking for it at the box office now. I may be crazy, but I’m not stupid.”

The may be a rough ride ahead, with plenty more of up and downs to come, but we’ll probably all sleep a little better if we remain confident that John McAfee’s tackle will remain in one piece.