Tobias Reichmuth was this week’s guest on the Relai Bitcoin Session. Tobias is a Swiss fintech investor, a serial entrepreneur, and an early Bitcoin adopter. He is the Chairman of the Board at Crypto Finance AG and, currently, focuses most of his energy on his longevity startup Maximon.
We spoke with Tobias about his experience with Bitcoin and how the average individual should invest in digital currency.
You can watch this episode of the Relai Bitcoin Session on YouTube here.
Alternatively, you can tune in to the audio-only version on AnchorFM.
The Main Takeaways
Tobias discovered Bitcoin back in 2012 but failed to fully recognize its potential. It wasn’t until 2016 that he decided to jump in headfirst and founded Crypto Finance AG, an institutional service provider in the blockchain and crypto finance industry, which launched in 2017.
Bitcoin is an Exciting Currency Experiment
The most exciting thing about Bitcoin for Tobias is that the digital currency operates independently from central banks. Unlike fiat currencies, which can be manipulated by central bank interventions, like the Swiss franc in January 2015, Bitcoin’s price cannot be centrally controlled.
Additionally, bitcoin is a disinflationary currency because of its fixed limited supply and hard-coded monetary policy, making it an incredibly interesting currency experiment, Tobias explains.
Don’t Buy More Than You Can Afford to Lose
When it comes to buying bitcoin, Tobias thinks it’s important that the average investor doesn’t invest too much in digital currency given how volatile it is.
If someone puts in CHF 1,000 and the price drops quickly, that amount can easily be worth CHF 600. For people who need that money to pay rent, they will sell because they need the money, and, therefore, incur a loss.
So it’s better to only invest money in bitcoin for the long-term that you don’t need to access for living expenses, Tobias suggests.
There’s Probably More Upside for Bitcoin
While Tobias makes it clear that his opinion on bitcoin’s price potential is not investment advice, he thinks that there is still price upside.
Many of his friends told him that it was too late when bitcoin hit CHF 1,000. They said the same when it hit 10,000 and again when it hit 20,000. Tobias, however, thinks that given that the digital currency has already hit $67,000 and is trading at $34,000 today, there is probably more upside at these levels.
“I rather buy more than sell bitcoin. […] In light of how limited the supply of bitcoin is while other money in the world has an increasing supply, the price of bitcoin should continue to go up,” Tobias stated.