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S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

reuters.com

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Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#71

Post by okokok___ »

misnamed wrote: post #51
PretzelPirate wrote: post #38

Earlier quoted context omitted.

I think part of the confusion is the word “currency”, which implies it’s something like USD. Ethereum’s ETH token, for example, is an asset that will appreciate if demand of the Ethereum network increases for real-world business applications (not just financial payments). That makes it much more like investing in a limited resource (ex: oil) that will go up in value. It’s still speculating, but most stock investments…

Stocks are shares in profitable companies. They have risks, sure, but they also have expected returns based on sound fundamentals and a long history of generating income.

>Stocks are shares in profitable companies.

Not always, tons of companies are losing money but the share price goes up.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#72

Post by iamspoilt »

aboodman wrote: post #58
iamspoilt wrote: post #37

Earlier quoted context omitted.

Okey, calling it a "long-term gamble" only sounds fair to me. Talking about value, isn't blockchain / crypto analogous to a medium that enables moving money quickly? If yes, internet would be similar in some sense (we have instant local money transfers these days) but we don't have anything that tracks internet as an investment. Coming back to it, I can rationalize myself investing in a money transfer business that i…

Any cryptocurrency can be used to move money quickly. So if you buy a cryptocurrency, you are automatically "investing" in that "business". You don't need Transferwise. Bitcoin is the canonical example. The value investment argument for Bitcoin is that you think Bitcoin is (or will become) a good way to move money. You're buying a scarce piece of that utility. === Some cryptocurrencies additionally have other utiliti…

Thanks for the input. It does put things into some perspective but I am still wondering.

So something analogous to owning a part of the network, would it be correct to say that, for instance, governments own and auction telecom spectrums to businesses. They do make money out of that ownership through the initial auction price and then potentially tax you later. So a cryptocurrency could be looked at in a similar way in the future. When you later sell the currency you have owned for a while (given that it takes off well over the couple of years), you are basically transferring that "spectrum" ownership to another party.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#74

Post by lordnacho »

iamspoilt wrote: post #30

Someone please explain this to me: How is any cryptocurrency even considered an investment vehicle? I would classify myself as Boglehead and I believe in the fundamentals of investing in stocks because in all it's technicality (and given the buy-and-hold strategy), you are investing in a business by owning a part of it which naturally means that you will and do get the returns on it, both in terms of profits (dividen…

This is not a comment on crypto as such, it's more a comment on how markets work.

By the time you know what you're buying, it's priced in. When everyone agrees that some opportunity is amazing, they also agree the vehicle that provides it (shares, bonds, coins, whatever) has got to be expensive. At least more expensive than when it was just ideas.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#77

Post by elevenoh »

finikytou wrote: post #28

this + the entry of tesla within S&P + the destruction of small businesses is the perfect recipe for chaos and years of reviving 2008 era

Could you elaborate?

We're definitely in an accelerated-transition period w/ an uptick in inequality, if that's what you mean.

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#78

Post by levosmetalo »

Great news. Right now what is holding me from investing in Bitcoin are:

- horrible fees - slow transaction - risk of total loss (by loosing wallet, or exchange getting hacked) - no regulation

With the Bitcoin ETF I would be getting the following benefits

- lower trading fees on stock market compared to stock exchange - fast transactions - no risk of total loss, since ETF shares are protected (at least in Europe by UCITT) - the state standards and controlling mechanisms apply to ETF providers

Re: S&P Dow Jones Indices to launch cryptocurrency indexes in 2021

#79

Post by iamspoilt »

nostrademons wrote: post #67
iamspoilt wrote: post #30

Someone please explain this to me: How is any cryptocurrency even considered an investment vehicle? I would classify myself as Boglehead and I believe in the fundamentals of investing in stocks because in all it's technicality (and given the buy-and-hold strategy), you are investing in a business by owning a part of it which naturally means that you will and do get the returns on it, both in terms of profits (dividen…

It's analogous to investing money in USD or GBP before those countries were given a license to print as many USD and GBP as they wanted. Before then (1931 for the pound and 1933 for the dollar, though they maintained de-facto parity with gold until 1971), dollars and pounds were considered good investments. That's why we had bank runs: people thought their money would be safer under their mattress, and preferred to o…

It is fixed at 21M but technically, this can be changed through an Economic Majority [0][1].

[0] https://en.bitcoin.it/wiki/Economic_majority

[1] https://bitcoin.stackexchange.com/questions/3945/how-could-t...

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