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Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

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Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#51

Post by mrb »

dankohn1 wrote: post #14
meowface wrote: post #12

Earlier quoted context omitted.

What's wrong with experimenting with cryptocurrencies? It's not like they're taking away resources from their main business to blow on bitcoins. (Though Vanguard is probably still a better choice regardless.)

I want the CEO of my mutual fund company to be focused on how to index better, not on cryptocurrencies.

Fidelity does more than just mutual funds: wealth management, investment advice, brokerage, etc. It would be outright negligent for a company like them to not "educate themselves" (CEO's words) on cryptocurrencies as one of many available investment options.

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#52

Post by SilasX »

proofofstake wrote: post #30

ROI of creating an investment portfolio 1 year ago, and selling today: - All Bitcoin: ~500% - Mix of top market: ~2800% - All Strat: ~13500% Meanwhile, stock investors call 12% a good year.

What about the Sharpe ratio? Divide the return by the (daily?) standard deviation of returns.

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#53

Post by ufo »

zghst wrote: post #47
zaptheimpaler wrote: post #28

Earlier quoted context omitted.

1 Satoshi = 0.00000001 BTC (10^-8 BTC) It represents the smallest fraction of 1 bitcoin you can use as an amount in a transaction, so they are the smallest (indivisible) units.

Very interesting name for a decimal. What an intricate community

(Satoshi is the inventor of bitcoin, in case you don't know)

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#54

Post by SilasX »

dankohn1 wrote: post #11
dmoy wrote: post #10

Earlier quoted context omitted.

0.005% lower expense ratios is what shifted my stuff from Fidelity to vanguard. Idk how much exposure they're putting into crypto currency based on this.

Come for the lower expense ratios, stay for the focus on running low cost indexes mutual funds, as opposed to experimenting with cryptocurrencies.

Okay, but keep in mind Vanguard does offer and promote actively managed funds; whatever focus they have falls short of a tunnel.

https://personal.vanguard.com/us/insights/article/active-fun...

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#55

Post by mrb »

proofofstake wrote: post #30

ROI of creating an investment portfolio 1 year ago, and selling today: - All Bitcoin: ~500% - Mix of top market: ~2800% - All Strat: ~13500% Meanwhile, stock investors call 12% a good year.

Yup. Few people realize Bitcoin has been literally the best performing investment in human history. One dollar invested in March 2010 is worth $1+ million today. 1,000,000× returns.

But the downside of performing so well is that it is too easy to get distracted by the price and disregard the radical improvements that Bitcoin brings over legacy financial systems...

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#56

Post by derefr »

zghst wrote: post #47
zaptheimpaler wrote: post #28

Earlier quoted context omitted.

1 Satoshi = 0.00000001 BTC (10^-8 BTC) It represents the smallest fraction of 1 bitcoin you can use as an amount in a transaction, so they are the smallest (indivisible) units.

Very interesting name for a decimal. What an intricate community

It's the name of the creator of Bitcoin, https://en.wikipedia.org/wiki/Satoshi_Nakamoto. You can imagine them as little pennies with Satoshi's head imprinted on them, if you like.

And it's not really a decimal; it's more properly "1 bitcoin" in the technical sense. 1BTC was later defined to be equal to 10^8 Satoshis because that seemed like a useful amount of money to track exchange rates for (though now it's about 10^4 too high.)

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#57

Post by dankohn1 »

SilasX wrote: post #54
dankohn1 wrote: post #11

Earlier quoted context omitted.

Come for the lower expense ratios, stay for the focus on running low cost indexes mutual funds, as opposed to experimenting with cryptocurrencies.

Okay, but keep in mind Vanguard does offer and promote actively managed funds; whatever focus they have falls short of a tunnel. https://personal.vanguard.com/us/insights/article/active-fun...

Yep, nobody's perfect.

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#58

Post by sillysaurus3 »

ufo wrote: post #53
zghst wrote: post #47

Earlier quoted context omitted.

Very interesting name for a decimal. What an intricate community

(Satoshi is the inventor of bitcoin, in case you don't know)

Not quite. The central ideas underpinning bitcoin are very old, tracing back to hashcash and bitgold. https://en.bitcoin.it/wiki/Hashcash#History

It's not really an important distinction, but maybe someone will find the history interesting.

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#59

Post by sokoloff »

dmoy wrote: post #10
dankohn1 wrote: post #9

I cannot imagine a headline that would make me more interested in investing with Vanguard.

0.005% lower expense ratios is what shifted my stuff from Fidelity to vanguard. Idk how much exposure they're putting into crypto currency based on this.

The difference in fees is probably closer to 0.5% (50 basis points), not 0.5 basis points.

Re: Fidelity CEO Abigail Johnson says the company is mining cryptocurrencies

#60

Post by base698 »

shimon wrote: post #42
proofofstake wrote: post #35

Earlier quoted context omitted.

I agree with: > The crypto market is still niche. There are stocks that make 100-1000% performance. But the stock market is "saturated" for representing assets, equities and companies. So its growth is limited. so I do not see how my post was wrong. These are the numbers. With such numbers, it would be foolish to discard the crypto market as "too volatile" and stick with stocks. There are crypto coins that did way be…

No, these numbers do in fact suggest the crypto market is extremely volatile. Many, many people who invest regularly in stocks should not invest in cryptocurrency because it is too volatile. People/companies that are able to understand and accept the risk that comes from speculating on cryptocurrencies should consider doing so, because it is possible to make a profit, perhaps a significant one. But if you're looking…

I always read these posts as all or nothing, so forgive me if that's not what you mean. Why not take a smaller chunk of a portfolio, say 2%, and invest in crypto?

That way you can get potentially huge gains with little at risk.

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