61–70 of 143 posts
Earlier quoted context omitted.
Past performance is not indicative of future results.
Then why do people say "invest in the stock market for the long run by buying an index fund?"
Corrected title: After the Bitcoin Boom: Hard Lessons for n00b crypto Investors
That doesn't even make sense. Anyone that is attempting to invest in crypto is a noob, even the ones that claim to be 'experts'. Nobody had any type of signaling to predict a price deflation for any of the crypto assets. The hard lesson is about timing, not about expertise.
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Bitcoin has been through at least 3-4 major "run ups" already. Those who do not look at the log chart think that "this time it's different" and Bitcoin will surely die for good. Later it'll crash from $250K to $50K and then it will certainly be the end. 2011: $1->$30->$3. 2012: $5->$15->$10. 2013: $10->$270->$80. 2013-14: $100->$1100->$250. 2016-2018: $500->$20000->$6000 (so far).
Consider how much money had to enter the market for the price to reach $1000. Consider how much money had to enter the market for the price to reach $20,000. Now consider how much money will have to enter the market, after everyday “normal” people from outside of tech have lost hundreds or thousands, for the price to reach $250,000.
We saw $800bn for crypto at the height, and it's down to about $200bn at the moment.
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Unfortunately, from later in the article: > Kim Hyon-jeong, a 45-year-old teacher and mother of one who lives on the outskirts of Seoul, said she put about 100 million won, or $90,000, into cryptocurrencies last fall. She drew on savings, an insurance policy and a $25,000 loan. Her investments are now down about 90 percent.
This is crazy. People don’t go from saving up 90k in their 40s to sinking all that into a gigantic lottery. Do they?
Earlier quoted context omitted.
Past performance is not indicative of future results.
Then why do people say "invest in the stock market for the long run by buying an index fund?"
If you buy 100 stocks and 10 of them go to 0 you are out 10%. However, if the other 90 stocks are up more than 15% then you have gained a little money.
But, if you buy 100 different stocks by hand then you pay 100 different transaction fees and have to keep track of them independently for tax etc.
Where do they find these people? Is this what a lot of "ordinary" people do? Take out tens of thousands of dollars in loans to invest in cryptocurrency? Are the people profiled in the article a representative sample? Or are we hearing about the worst cases only because they are so notable and out of the ordinary? Will this post ever stop asking questions?? Stories like these are full of anecdote and short on facts, i…
But it's not that big of a mental jump to make, isn't college education also a kind of long-term gamble with debt? You take on huge debt to get an education that will maybe allow you to make a high enough income to pay back your debt in a reasonable time.
For some that gamble pays off, for others, not so much.
As a personal anecdote: I'm far from being wealthy, but I've always made sure to never have debt. A very good friend of mine, only a few years older, is right now going through personal bankruptcy due to some rather adventurous choices in his younger years.
But he still doesn't seem like he's learned anything. When talking about potential financial investments he always treats me like I'm some kind of millionaire as my good credit history, and meager savings, could easily get me very high loans.
It's like some people see their total credit limit, across several institutions, as their actual own capital in a very naive "As long as somebody is gonna give it to me, it's mine!" way.
Never shilled or advised others to "invest" because the best time to sell is when everyone else is buying and I understand how pyramid schemes work.
Got took for a ride in every major ponzi, scam, etc prior to 2014 seeking interest... greed. Hello, hi! HN - I know you don't like the bitcoins.
Where do they find these people? Is this what a lot of "ordinary" people do? Take out tens of thousands of dollars in loans to invest in cryptocurrency? Are the people profiled in the article a representative sample? Or are we hearing about the worst cases only because they are so notable and out of the ordinary? Will this post ever stop asking questions?? Stories like these are full of anecdote and short on facts, i…