The cryptocurrency market has now been in a bear cycle for more than two-thirds of the past year, and, as August prepares to roll in September, predictions from past months that the bitcoin price would test its all-time high in 2018 appear less and less likely.
However, even after this prolonged decline, Litecoin creator Charlie Lee says that the flagship cryptocurrency is still a good buy. Speaking with CNBC, Lee said that the dropoff in prices has created an excellent investment opportunity for long-term bulls who have cash-in-hand that they can afford to lose. “It’s always good to buy on the way down to dollar-cost average your buy-in,” he said. “As long as you don’t spend money that you can’t afford to lose, I think that’s fine.
The former Google and Coinbase engineer cautioned against using borrowed funds to invest in bitcoin, a practice that became disturbingly common during last year’s fevered Q4 rally, noting that it’s incredibly difficult to predict short-term price movements and bear markets can in some cases endure for years.