Maybe I'm just too old. I get the stock market. I understand somewhat why stocks go up or down I've read articles. I just don't get it. On a lark i threw 500 bucks on bitcoin when it was eight grand. Obviously things have taken off. I'm not going to get.rich either. How does this fake assert not backed by anything have value? Am I missing something?
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Bitcoin? Why is it blowing up?
- Thread starter ThorntonMelon
- Start date
Yeah, which means it's worth something because they say it is. The dollar (or most fiat) is controlled by central banks. The gov't can print as much as it wants. If it prints too much, it creates hyperinflation.
Bitcoin on the other hand, is decentralized and limited to 21 million coins EVER. Unconfiscatable (if that's even a word but you know what I mean) if stored correctly. I too was once nonbeliever of Bitcoin until I learned more about it. I find that most people who trash Bitcoin don't really know much about it. There's a reason it's in the top 10 worldwide in terms of marketcap.
Bitcoin on the other hand, is decentralized and limited to 21 million coins EVER. Unconfiscatable (if that's even a word but you know what I mean) if stored correctly. I too was once nonbeliever of Bitcoin until I learned more about it. I find that most people who trash Bitcoin don't really know much about it. There's a reason it's in the top 10 worldwide in terms of marketcap.
Investors create an artificial bubble and will soon cash out which will burst this bubble (This previously happened with BTC). Heed the sage advice to buy low/ sell high - BTCs valuation is currently overblown and to buy-in at this point would be a fool's gambit. The main reason that it is outpacing other crypto is because it's the most broadly known cryptocurrency - I mean your average person doesn't even know the term cryptocurrency, but will recognize the term bitcoin.
Also, BTC is far behind some of the alt coins that have far more compelling underlying principles that clarify their potential value. It would be a good move to begin researching cryptocurrency in general, but investing in a volatile sham cypto like BTC, you're just asking to lose your pants.
Also, BTC is far behind some of the alt coins that have far more compelling underlying principles that clarify their potential value. It would be a good move to begin researching cryptocurrency in general, but investing in a volatile sham cypto like BTC, you're just asking to lose your pants.
That's not the reason. The main driver is that younger generations have eschewed investing in the stock market and have shown an increased willingness to test the waters with crypto - but a lot of these nascent "first-time" investors are not well-versed in investing, so if you're someone who has the willingness to become an educated investor, this is all like shooting flailing fish in a barrel.
I know there is not a great deal of trend data for BTC, but this looks quite similar to the exponential peak of 2018 before the valuation was returned to an oppressively depressed state. For you older guys who are wondering if you should jump on the BTC bandwagon and ride home to the land of riches - don't, you've missed the train on this one, but do look at the other cryptocurrencies out there, there are some more credible one's out there, but the time horizon might be too long for some of you older guys.
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Let's look at another sham crypto - Going into 2021, the dogecoin crowd leveraged social media platforms like Twitter, to artificially inflate the price of this sham crypto (I mean it's still oppressively low, but I'm sure a few will make off like bandits).
Cryptocurrency when coupled with the virality of social media will most likely lead to a lot of artificial bubbles in the future, which again, is good for the educated investor, because these sheep who have a FOMO will come across some fake news in their timeline, and with a few clicks on their phone they can become investors. Pretty shitty environment but also opportunities to exploit stupid humans.
Cryptocurrency when coupled with the virality of social media will most likely lead to a lot of artificial bubbles in the future, which again, is good for the educated investor, because these sheep who have a FOMO will come across some fake news in their timeline, and with a few clicks on their phone they can become investors. Pretty shitty environment but also opportunities to exploit stupid humans.
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I'm not an expert investor. I hand all my investments over to someone who knows what they are doing. He does have me a little in Bitcoin, but its only because i kept asking about it.
But the thing i wanted to say about it is that its crazy volatile and you will eventually get burned if you dont know what you're doing, and you're just a small fish, like us.
I have a bunch of friends in Korea that were essentially day trading in bitcoin back the last time that it was going crazy. Basically if they had money sitting in their bank account (like for rent payments later in the month) they would buy into bitcoin and then cash out when they had to pay rent. all these kids thought it was great fun, making all these profits - until it crashed, and they were forced to sell at huge losses or lose their houses.
But the thing i wanted to say about it is that its crazy volatile and you will eventually get burned if you dont know what you're doing, and you're just a small fish, like us.
I have a bunch of friends in Korea that were essentially day trading in bitcoin back the last time that it was going crazy. Basically if they had money sitting in their bank account (like for rent payments later in the month) they would buy into bitcoin and then cash out when they had to pay rent. all these kids thought it was great fun, making all these profits - until it crashed, and they were forced to sell at huge losses or lose their houses.
Thanks for highlighting this - this is correct. Your average investor has someone managing their portfolio, and it is overwhelmingly passive investing, which is not so set on beating the market.
In cryptocurrency, you have fledging investors who are tasked with active investing with no coherent investment strategy, and I doubt any use of algos to automate investment decisions (there are a few platforms that start to get at this though). Again, there are some cryptos out there with compelling underlying value props for blockchain tech, but if you're an older 65+ guy, the time horizon to realizing this value is too far out. You may be in your late 70's/ 80's by the time shit starts to break for you, and by that point, would it even matter to you then?
In cryptocurrency, you have fledging investors who are tasked with active investing with no coherent investment strategy, and I doubt any use of algos to automate investment decisions (there are a few platforms that start to get at this though). Again, there are some cryptos out there with compelling underlying value props for blockchain tech, but if you're an older 65+ guy, the time horizon to realizing this value is too far out. You may be in your late 70's/ 80's by the time shit starts to break for you, and by that point, would it even matter to you then?
BTC was all the rage a few years ago. A couple of MMSs asked me about how to buy. I don’t think they did. Interesting how it was MMS’s that asked and not providers.
At the time there were some ETF’s that had some BTC in their mix. I explained that rather than buy just BTC, an ETF with BTC would be a safe option.
At the time there were some ETF’s that had some BTC in their mix. I explained that rather than buy just BTC, an ETF with BTC would be a safe option.
Same here, I had a couple spa ladies talk to me about BTC and Ethereum. I told them they were crazy to risk their retirement on something they don’t understand. There must have been somebody marketing to these girls though. The one who asked me first, basically had all her money in cash, in a safe deposit box in flushing. I’m just flabbergasted that she could flip from burying cash to playing with crypto currencies. I think part of her angle was thinking she could more easily disappear her money from government and taxes. That’s something I have no interest in myself, I’ve never looked into that.