After the Bitcoin Boom: Hard Lessons for Cryptocurrency Investors

Post by rootusrootus » Tue, Aug 21, 2018, 8:33 PM UTC

judah wrote: post #113

rootusrootus wrote: post #47

Earlier quoted context omitted.

That looks like skillful manipulation to me. There is an important difference with the most recent bubble -- now bitcoin is a household name. Where is the next pool of gamblers coming from?

Institutional investors via Bitcoin futures ETFs[0]. It will likely result in a lot of money flowing into the market via funds and investment houses where investors seek to diversify their investments. That will probably bring the cryptocurrency market back up to $20K and above. It probably won't happen until 2019 or 2020, though. The SEC is still on the fence about it, but I see it as an eventual inevitability. [0]:…

Post by Retric » Tue, Aug 21, 2018, 8:53 PM UTC

jonas21 wrote: post #90

Retric wrote: post #65

Earlier quoted context omitted.

Because of minimizing risk, and minimizing transaction fees. 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.

I'm pretty sure you still need to pay taxes on the dividends even if you're reinvesting them.

Post by gitgud » Tue, Aug 21, 2018, 10:26 PM UTC

cm2187 wrote: post #19

hluska wrote: post #14

> Now, eight months later, the $23,000 he invested in several digital tokens is worth about $4,000, and he is clearheaded about what happened. > “I got too caught up in the fear of missing out and trying to make a quick buck,” he said last week. “The losses have pretty much left me financially ruined.” I think it's distasteful to criticize the decisions that lead to someone's downfall, but maybe someone will read thi…

I don't think any investor saw this as anything else than a bubble, they just wanted to enjoy the ride up. I would go all-in in a bubble if I had the confidence someone would tap on my shoulder to let me know when it's going to crash. Investing requires discipline.

Post by bluecalm » Tue, Aug 21, 2018, 10:37 PM UTC

rootusrootus wrote: post #52

beefield wrote: post #38

I don't like that gambling (on an obviously ponzi like scheme) is called investing.

That started a long time ago. Buying stocks that pay no income is also referred to as investing, even though it is more accurately gambling as well. At least with stocks there is something with a more convincing value proposition.

Post by GreeniFi » Tue, Aug 21, 2018, 10:50 PM UTC

sdf43543t345 wrote: post #108

GreeniFi wrote: post #103

Earlier quoted context omitted.

Just out of curiosity, how does it make you feel knowing your gains were at the expense of not very fortunate or rich people losing out around the world - unprotected because of the newness of the “investment” type - by investment laws. I made a modest return on a bitcoin investment, felt shit about it, and donated all the return to charity.

Nobody had a gun to the buyers/sellers head. Everyone knows what they are getting into, and markets are a zero-sum game. I have no ethical issues with making profit from trading. I'm sorry that you were not able to take the win. Maybe you should not play games?