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The Importance of Early Investment! Is it good to invest in Bitcoin in 2012? Three Arrows Capital founder refutes: A terrifying concept

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The Importance of Early Investment! Is it good to invest in Bitcoin in 2012? Three Arrows Capital founder refutes: A terrifying concept

Famous venture capitalist and CEO of venture capital firm Social Capital, Chamath Palihapitiya, recently listed the early-stage investment projects he has been involved in on Twitter and revealed his investment philosophy. However, Zhu Su, the founder of Three Arrows Capital, has a different opinion, believing that placing too much emphasis on early intervention may not be a good thing.

Chamath Palihapitiya

Palihapitiya is not only a venture capitalist but also a former executive at Facebook, a shareholder of the Golden State Warriors, and an early investor in Bitcoin. In 2013, he purchased a large amount of Bitcoin, which at one point accounted for 5% of the total circulation. In February of last year, he publicly stated that during a global financial crisis, everyone should allocate 1% of their total assets to purchase Bitcoin.

"I don't think it's a good idea to rush to buy Bitcoin when you wake up in the morning and see the Dow Jones Industrial Average drop by 2,000 points due to coronavirus panic. That's a foolish strategy. I believe a sensible strategy is for everyone to have 1% of their net assets completely unrelated to how the world works."

Spot-on Investment Vision

Palihapitiya earlier on the 11th showcased his early investments over the years on Twitter, including:

  • 2007: Facebook
  • 2011: Investment in the Warriors
  • 2012: Bitcoin
  • 2014: Amazon
  • 2015: Tesla
  • 2017: SPAC

Prioritizing "Inconspicuous" Investment Targets

Although his past investment targets have been quite impressive, Palihapitiya has apparently been even more successful in the past year, shining in the Special Purpose Acquisition Company (SPAC) field. With 1.49 million Twitter followers, he has been dubbed the "King of SPACs" by netizens, who closely follow his investment moves.

He outlined his investment philosophy in the above tweet:

"Prioritize inconspicuous investment targets, make rational decisions, and if correct, they will be able to disrupt traditional views."

However, Zhu Su, the founder of Three Arrows Capital, has a different perspective on this.

Most Wealth is Generated in Mid-term Investments

Zhu Su retweeted Palihapitiya's post and stated:

"I believe investments highly supported by theory are much more important than early entry. In fact, most wealth is generated in the mid-term stage. Being overly obsessed with early entry often leads people to spend a lot of money. For example, 50,000 Bitcoins in 2012 were worth $500,000, and now they are valued at $3 billion."

He further explained:

"I'm not trying to start a fight, but I've seen too many people invest in certain cryptocurrencies quite early, sell them off, and then chase after projects that feel like they are in the early stages, which only makes them miss the main upward stages. This is a terrible concept of early involvement."

With products in the cryptocurrency market updating rapidly and various projects being launched one after another, Zhu Su suggests that there is no need to overly emphasize pursuing the newest investment targets. So, what are the projects he himself believes in?

Aside from Bitcoin, Ethereum, and DOT listed in his Twitter profile, he thinks the following cryptocurrencies will dominate the market in this bull market cycle, although he mentions he may have missed some:

  • Solana SOL
  • Serum SRM
  • BNB
  • The Graph GRT
  • THORChain RUNE
  • Aave AAVE
  • Arweave AR
  • Helium HNT