[2018-05-04] Angel Investor Amassed 10,000 Bitcoins Amid 2018 Price Slump

[nickbelski]

Cai Wensheng, an angel investor from China and chairman of photo retouching app provider Meitu, says he has achieved his goal of accruing 10,000 bitcoins.

In an open group Q&A session with tech entrepreneur Wang Feng on WeChat on Thursday, Cai disclosed that although he was holding a single bitcoin in January of this year, he moved to increase his portfolio over the first quarter of 2018 amid the bearish market's lower prices.

Soon after December's record high round $20,000, the price of bitcoin started dropping in January. It reached a low for the year so far below $6,000 in February, before climbing again to over $9,700 at press time. According to CoinDesk's Bitcoin Price Index, Cai's holdings are now worth around $96 million.

Cai explained his reasoning for the investment during the Q&A, saying:

"I only had single digit unit of bitcoin, just for fun in January. But when I got certain that bitcoin and blockchain is the future, I set the goal of holding 10,000 bitcoin. So I started around end of January to build my [holdings] following the price decline. The more it dropped, the more I bought in and now the mission is basically complete."

Born in the 1970s, Cai made his name and first fortune by investing in domain names during the internet bubble and expanded his investment portfolio over the next decade as an angel investor.

His current venture, Meitu, a popular photo retouching tool in China that claims to have over 90 million monthly active users, went public in Hong Kong in December 2016 with a valuation of $5 billion at the time.

Cai's disclosure makes him one of the few big-name investors in China to have openly disclosed their bitcoin holdings. It also comes at a time when Meitu is aiming to utilize blockchain technology to decentralize storage of users' data, according to a white paper published in January.

Source: https://www.coindesk.com/chinese-angel-investor-amassed-10000-bitcoins-amid-q1-price-slump/

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[1Referee]

Very interesting, but it might as well be an article hyping things up badly.

How does one in just a very short period of time find out that Bitcoin and the blockchain are the future, and then directly buy in like 10,000BTC?

I don't doubt that he actually owns that many coins, but I very much doubt that he aquired them in the way he pointed out he did. Either way, it's at least not the usual dose of negativity, so it's all fine in the end. It once again points out that during strong price declines fud pops up everywhere, and when we are heading up, these positively tinted articles pop up. It's almost like they are waiting with publishing certain articles for the right market sentiment, and then dump everything on the internet all at once.

It definitely takes some courage to openly talk about your Bitcoin holdings when times are quite difficult for crypto in China; break the taboo.

[CryptoBry]

This is the kind of mindset that can make anyone who has the money and the willingness get rich in the cryptocurrency market. While the rest of the world have been panicking in selling their Bitcoin holdings, this guy made the opposite and he was indeed right. The right to buy is when the value is dipping and not when it is reaching the peak which many have been doing so I am not wondering why many got lost their money.