211–220 of 571 posts
How can this be with Tether existing? Does anyone really honestly think that USDT is legit?
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…
Yet, a somewhat sizeable category of people still invest in gold ...
Could it be that the definition of "investment vehicle" is broader that what you may have willingly restricted yourself to?
Earlier quoted context omitted.
That is what risk is.... not knowing. If you want high reward from an investment, you need to take high risks, which means you will invest without knowing something. Now, some risks are smarter than others...
That's not necessarily a good idea. You don't need to take on higher risk for a higher return. It's usually better to leverage risk-adjusted returns rather than chase high total returns with commensurate risk. You can take on more risk that if you have the appetite, but if that's the case you could also just use levered beta (e.g. 3x levered S&P 500). This would significantly improve your portfolio while still being…
If you use a 3x or other leveraged fund, then you run into tracking issues (look at https://www.etf.com/etfanalytics/etf-comparison/SPXL-vs-SPY) where you see tracking break down), you can lose everything (remember XIV?), and you have other potential issues.
So it's not as simple as leveraging up a low-risk portfolio to assume a given risk/return ratio. There's also diversification to keep in mind.
Earlier quoted context omitted.
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...
But then, this is where Bitcoin is genius: the code isn't everything.
There's a whole bunch of built-in economic incentive feedback loops.
And getting to an "Economic Majority" is very unlikely to happen because none of the participants have to gain from that change.
Also: since a bitcoin is divisible to 10e-8, it's going to be a very long while before there's an actual shortage of the darn thing.
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…
By your reasoning, gold isn't an investment vehicle either (a rather widely-held belief, btw). Yet, a somewhat sizeable category of people still invest in gold ... Could it be that the definition of "investment vehicle" is broader that what you may have willingly restricted yourself to?
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…
Earlier quoted context omitted.
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...
What does this concept of Economic Majority look like of we consider it for the US Dollar, rather than btc?
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 UC…
The thing I don't get (and I have the same skepticism about gold ETFs) is that if one is trying to hedge extreme scenarios (e.g. high inflation or even monetary collapse) ETFs being 'protected' could easily fall through. I sort of understand holding one's own gold or Bitcoin, but through and ETF just seems like all the speculation with none of the crisis portability.
How can this be with Tether existing? Does anyone really honestly think that USDT is legit?
Earlier quoted context omitted.
There is Satoshi's wallet in the root, no need for authority as we can see.
Yes, there is need for a central authority, Charles Ponzi for example. They actively and consciously channel the funds from new, defrauded investors, to that authority. BTC is not a Ponzi Scheme ; Satoshi is not steering the profits from a pump-and-dump. Passively profiting off new investors buying BTC does not make a Ponzi Scheme. Market manipulation is not a Ponzi Scheme. A Pyramid Scheme is not a Ponzi Scheme. "Po…