Stellar Performance of Basketball Phenomenon Kevin Durant, Earning an Inherited Fortune with Bitcoin Investment
In a remarkable turn of events, NBA star Kevin Durant's Bitcoin investment, made back in 2016, has proven to be a shrewd move, yielding an impressive return of over 11,000%. This remarkable story comes to light as Coinbase, the digital asset exchange, announced the restoration of Durant's account.
Tristan, the chief editor at Blocktrainer.de, a trained economist with a background in libertarian economic theory and a keen interest in Bitcoin since 2020, has been following the Bitcoin market closely. According to Tristan, holding onto Bitcoin through its highs and lows has been the superior strategy.
The current price of Bitcoin hovers around $117,000, a significant increase from the range Durant initially invested in, between $350 and $990. Durant's manager, Rich Kleiman, was introduced to Bitcoin at a dinner where the topic was discussed, prompting the investment. However, Durant's then-business managers had discouraged him from investing a year or two earlier.
Durant learned about Bitcoin through YouTube videos and made his first investment in 2016. Since then, he has not been able to access his Coinbase account for several years. This inability to sell or manage his investment inadvertently benefited him as Bitcoin's value rose sharply.
The restoration of Durant's account may have been a demonstration by Coinbase that losing access to the exchange does not mean the coins are lost forever. It is important to note that if access to self-custodied Bitcoin is lost, the coins are gone permanently.
Tristan recommends taking custody of the coins to reduce the risk of losing them. A guide for beginners on how to buy Bitcoin in 5 steps is available. In Bitcoin, owning the coins implies controlling the private keys, not balances held on an exchange.
There is a risk of losing balances on an exchange due to hacking. Selling Bitcoin after the first multiplication or in panic after a correction can be detrimental. In Germany, Bitcoin gains are tax-free after a holding period of one year.
Interestingly, Paris Saint-Germain, a renowned football club, has also bought Bitcoin. Many private individuals find it challenging to time the market, and an active approach proves difficult in practice. Tristan, who also has journalistic experience outside the Bitcoin space, advises a long-term holding strategy for Bitcoin, as demonstrated by Kevin Durant's investment.
However, Kevin Durant's current status regarding holding or selling his Bitcoin remains unknown. Regardless, his behavior regarding his Bitcoin holdings may become more proactive and confident now that his access to his Coinbase account has been restored.
In conclusion, Kevin Durant's Bitcoin investment serves as a testament to the potential rewards of long-term investment in Bitcoin. As the market continues to evolve, it is essential for investors to understand the risks and benefits associated with digital assets like Bitcoin.
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