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Bitcoin Value Sinks After Chinese Exchange Move

nytimes.com

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Re: Bitcoin Value Sinks After Chinese Exchange Move

#31

Post by master_shake »

ivanplenty wrote: post #20
master_shake wrote: post #10

In April, I watched the price of bitcoin every day. When it approached $200 I said "f*ck it," took out a student loan and bought in at $225. The VERY NEXT DAY the price collapsed. I watched bitcoin slide to $50 in a state of complete and utter devastation. I felt so stupid. I decided not to sell, and just considered the loan to be a write-off. Point being, you should assess the quality of your investment in years, no…

There's a few things weird about this story. Are you really proud you have a leveraged position in bitcoin? Isn't that among the riskiest positions you can take on a very volatile, illiquid, and possibly illegal asset? That's totally a personal choice, but it's certainly not one I would or a typical retail investor should ever take. Your decision to buy-and-hold during a sell off in the Spring is at best an anecdote…

Thank you captain obvious. I had ABSOLUTELY NO IDEA that using student loans for unauthorized investments is a violation of the contract. Gee willakers! I better go turn myself in!

Re: Bitcoin Value Sinks After Chinese Exchange Move

#33

Post by dualogy »

ivanplenty wrote: post #20
master_shake wrote: post #10

In April, I watched the price of bitcoin every day. When it approached $200 I said "f*ck it," took out a student loan and bought in at $225. The VERY NEXT DAY the price collapsed. I watched bitcoin slide to $50 in a state of complete and utter devastation. I felt so stupid. I decided not to sell, and just considered the loan to be a write-off. Point being, you should assess the quality of your investment in years, no…

There's a few things weird about this story. Are you really proud you have a leveraged position in bitcoin? Isn't that among the riskiest positions you can take on a very volatile, illiquid, and possibly illegal asset? That's totally a personal choice, but it's certainly not one I would or a typical retail investor should ever take. Your decision to buy-and-hold during a sell off in the Spring is at best an anecdote…

Well it WAS kinda "educational" for him, wasn't it? ;)

Re: Bitcoin Value Sinks After Chinese Exchange Move

#34

Post by grey-area »

mattm wrote: post #30
grey-area wrote: post #12

Earlier quoted context omitted.

Should a currency be an investment?

It doesn't matter if it should or not, it is. As is most other currencies. See how George Soros made his fortune.

George Soros made money from speculation (e.g. shorting the pound out of the ERM), not investment (buy and hold as the OP advocates).

Re: Bitcoin Value Sinks After Chinese Exchange Move

#35

Post by dualogy »

raingrove wrote: post #13
master_shake wrote: post #10

In April, I watched the price of bitcoin every day. When it approached $200 I said "f*ck it," took out a student loan and bought in at $225. The VERY NEXT DAY the price collapsed. I watched bitcoin slide to $50 in a state of complete and utter devastation. I felt so stupid. I decided not to sell, and just considered the loan to be a write-off. Point being, you should assess the quality of your investment in years, no…

speculation != investment

I keep hearing this but I never see any angle to this statement where it could possibly be true.

Re: Bitcoin Value Sinks After Chinese Exchange Move

#36

Post by confluence »

master_shake wrote: post #10

In April, I watched the price of bitcoin every day. When it approached $200 I said "f*ck it," took out a student loan and bought in at $225. The VERY NEXT DAY the price collapsed. I watched bitcoin slide to $50 in a state of complete and utter devastation. I felt so stupid. I decided not to sell, and just considered the loan to be a write-off. Point being, you should assess the quality of your investment in years, no…

In 08' pension funds got wiped out. They felt so stupid. They decided not to sell, and just considered their loans a write-off. They stayed written off. You should assess the quality of your investment in utility, not years. And in regards to Bitcoin, allow me to quote myself

> Everything goes up in price, until it doesn't.

Re: Bitcoin Value Sinks After Chinese Exchange Move

#39

Post by jaibot »

jasonlingx wrote: post #37

Wow, this has really got the attention of the Chinese authorities. This only alludes to how incredibly disruptive bitcoin is going to be. Time to go all-in if you haven't already...

> Time to go all-in if you haven't already...

If every possible outcome confirms your hypothesis, you are not considering the evidence properly. If China hadn't moved against Bitcoin, would you think that would make Bitcoin a less attractive speculation?

Re: Bitcoin Value Sinks After Chinese Exchange Move

#40

Post by mdemare »

richardw wrote: post #18
grey-area wrote: post #12

Earlier quoted context omitted.

Should a currency be an investment?

Wrong question, I think. This thing is barely a currency. It has built-in deflation, which makes it a great long-term store of value (assuming it isn't killed somehow) in a world of depreciating alternative stores of value, but a bad currency. If you want a currency for day-to-day use, USD is what you want. If you want to hedge against USD depreciation, BTC is one option.

If you want to protect yourself against USD depreciation, buy Treasury Inflation-Protected Securities (TIPS). Ultra safe, ultra boring.

But why would you want to? Inflation is bad if you have lots of money but no (prospects of) income. Retirees for instance. Most of you are in the opposite situation.

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