561–566 of 566 posts
I've made about $110k profit this year in crypto on a $21k investment earlier this year, and I think this is all a giant bubble. I was at my parents' house for Thanksgiving and a commercial with Ron Paul talking about Bitcoin came on, which coincided with around the time it went to $10k, and it hit me really hard that this isn't going to last forever (and probably will hurt sooner rather than later). I liquidated eve…
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What I don’t get is that you can’t buy a car with bitcoin. So surely this should also create a selling pressure, unless they just buy bitcoins with the intent to transfer money at a later stage.
Yes you can: https://i.redd.it/d5wrulv2ndjz.png
It's the equivalent of you selling your BTC holdings at market rate and buying the car with USD.
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The “moon” is the value required to have the jaw of your doctor / lawyer neighbor hit the ground when you tell them “I own one bitcoin”.
What's absurd about that concept is that it supposes that there's a day coming when people who haven't already bought Bitcoin will want it so badly that they'll be willing to enrich people who are buying in now. I think people who bought in a year ago will be the ones who can claim that sort of reward, at best.
Buyers today are not considering “should I or should I not enrich those who bought earlier”. They are simply making a bet that the value might go up and want to own some if it does.
As an asset rapidly increases in value and the underlying driver of that increase is not well understood, all sorts of unexpected things can happen. The question is not how big will the bubble get, but who will be left standing when the music stops.
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holy shit. just on litecoin?
No, I bought in 2013 for $10k at about $7 per BTC. I had about a $300k net worth at the time, so it seemed like a good play. Periodically sold and distributed into several alt coins over the years (eth, dash, monero, bitshares, etc.). I could have made a lot more if I didn't sell so much, but at the time a 10x increase seemed like a one in a lifetime event. When it increased to $80 per btc, I sold 80% of my investmen…
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Crypto has been one of the better performing asset classes in the last 5 years. That is just a fact -- if looking in percentage terms. Pension funds generally allocate up to 5% of their portfolio to alternatives, which could be smaller funds investing in art, watches, music royalty rights, farmland, wine, and the likes. This also includes crypto. If you're an investment manager, it isn't necessarily crazy to allocate…
Absolutely -- To the parent: think of it this way. If you had $200 in your fund last year to invest last year, and put $1 into crypto, then at worst, you lose that entire $1, and your portfolio is down to $199 (notwithstanding what you did with the other money), a loss of 0.5%. If you happened to pick Litecoin, and bought 0.25 LTC when they were at a stable price of $4 a piece, today that 0.25 LTC would be worth $80,…
The analysis presented is a bit disingenuous. If you put money into every thing that could pop 400x, you’d have no money. Pension funds in particular need to be conservative and even if they’re doing “risky” things like venture capital for example, they would want late stage funds — lower returns, lower risk.
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Wow, pension funds should not be doing currency speculation. That's bad. The problem with crypto-_currency_ is that it's not a productive asset. A share of a business pays dividends over time and thus has intrinsic value (and _some_ speculative value), while a currency does not. A currency transaction is a zero-sum game, which is good because it minimizes friction. Buying cryptocurrency with the expectation of increa…
You can take the crypto out of the above statement and it's still true - yet I know plenty of funds that speculate on currencies.