- Bitcoin emerged as one of the best performing assets in the last decade.
- Research Affiliates chair and popular investor Rob Arnott tells Bloomberg that he regrets not investing more in Bitcoin in 2013.
The track record of Bitcoin is undoubtedly one of the reasons many investors choose to add it to their portfolios. Bitcoin has emerged as one of the best-performing assets, recording an average yearly gain of around 200% over the last decade.
With this performance, it is no surprise that many investors who were skeptical about the pioneer cryptocurrency and the new financial era being introduced to the world are now expressing regret. The latest to note such a sentiment is Rob Arnott, the chairman of Research Affiliates LLC and a renowned fundamental investor.
Speaking on a Bloomberg podcast,” Arnott revealed that he regrets not following a hunch to invest $100,000 in Bitcoin in 2013 when he first found out about it.
He said when he first discovered Bitcoin, he knew it would become a global phenomenon that would “give central bankers a so-called run for their money.” With his fascination, he thought about buying around $100,000 of Bitcoin which was then trading around $200 per BTC but instead opted to purchase just 1 BTC as he did not consider himself to fully understand the cryptocurrency. “Today, if I bought the $100,000, it would be worth about $25 million,” he said.
He did not however disclose if he has made more investments in Bitcoin since the initial purchase. Arnott isn’t the only reputable investor to express regret about not going all-in on Bitcoin. According to Peter Schiff, who remains a strong Bitcoin skeptic and gold supporter, one of his greatest investment regrets is not investing in Bitcoin in the early days. Schiff told Coin Stories podcast September that if he could “go back in time” he would definitely invest in Bitcoin.
Meanwhile, it also appears that the Research Affiliates chairman until recently still held some skepticism for Bitcoin and investing in Bitcoin. In an article published in January by the $195 million investment assets adviser, the firm argues that Bitcoin is not a store of value or even a capital asset. It also asserts that the market performance of BTC is “nearly certainly a bubble and likely manipulated.”
The article which noted Arnott as a contributor advised investors to “resist the temptation to chase the price” as “extreme fluctuations in price invalidates claims that BTC is a store of value.”
Interestingly, since the publication of the article, Bitcoin has gone more mainstream and has even seen the U.S. SEC approve several Bitcoin futures exchange-traded funds for the first time. This may have also contributed to Arnott’s new take on BTC.