Bitcoin continues to dominate headlines, but one of its earliest supporters, Adam Back, CEO of Blockstream, warns that selling it might be like playing a losing hand at a rigged casino. In a recent interview, Back cautioned against trying to time the market, saying it’s a risky strategy that often leads to losses. Despite its sharp price swings, Bitcoin’s long-term trend has been consistently upward.
Bitcoin’s Volatility is Normal—and Long-Term Holders Reap the Rewards
Back emphasized that while Bitcoin can be extremely volatile in the short term, this is typical of fast-growing assets. Over the past decade, Bitcoin has returned more than 39,000%, making it one of the best-performing assets in modern financial history. Those who held their Bitcoin through both bull runs and crashes have generally come out ahead.
He also argued that volatility should not deter investors. In fact, he sees it as a sign of a young and maturing market. As adoption increases, Back expects Bitcoin’s price swings to smooth out. While many analysts predict diminishing returns in each market cycle, Back believes this time might be different due to shifting market dynamics and broader institutional involvement.
Institutional and Government Support Is Changing the Game
Support for Bitcoin is growing beyond the retail investor. Major institutions and even governments are starting to take notice. Abu Dhabi recently invested over $400 million into a Bitcoin exchange-traded fund (ETF), showing confidence from a sovereign wealth perspective. In the United States, states like Texas and New Hampshire have moved to create Bitcoin reserves, further legitimizing the asset.
Perhaps most notably, former President Donald Trump has publicly endorsed a national Bitcoin strategy, signaling growing political support for cryptocurrency in general. With such high-level backing, Bitcoin’s role in the global financial system could continue to expand.
In summary, while the temptation to sell during market dips is strong, Adam Back’s message is clear: Bitcoin rewards patience. Its history of dramatic gains, increasing institutional support, and a shifting regulatory landscape all point to a strong future for those willing to hold.
