Today's U.Changpeng Zhao (known in the cryptocurrency community as CZ) did not hold back when looking back on his early journey. The former CEO of Binance told the strange story of buying Bitcoin in 2014. At that time, the market seemed all but determined to test his resolve. He entered the market during a bear market, but with little cash on hand, he found himself unable to buy on the dip or take profits during a downturn. It was a rocky start, to say the least.
But the story doesn't end there. It may sound like a mundane story of bad timing, but it has taken an unexpected turn in recent years. Bitcoin's incredible rise (more than 35,800% since its inception) can turn even a modest investment into a life-changing sum.
This calculation is hard to ignore. An investment of less than $3,000 back then could be worth millions of dollars today. As for Mr. Zhao, the resilience of his “diamond hands” has paid off in a big way, with his net worth calculated at more than $60 billion, according to various estimates.
Zhao's idea comes at a time when the cryptocurrency market is becoming quite intense. Just recently, $1.7 billion in derivatives positions were liquidated. But CZ's message is not about bragging. Instead, it's a quiet nod to luck, timing, and what we can learn from it, as well as a subtle warning to others.
“I don't recommend my strategy,” seems to be the conclusion of his reveal. Although Zhao's strategy paid dividends, the conditions that made it successful are unlikely to be repeated. This is a puzzling conclusion. His success was not in perfect execution, but in sticking to it.
A bigger lesson? Investment strategies must be personal, adaptive, and take into account market realities. However, if you look at the history of Bitcoin (BTC), you'll see that it was often held in your hand or sitting around rather than actively doing anything with it.
This article was originally published on U.Today
