Any Crypto Investors (Gamblers)?

[Worknman]

I recently splurged a little on bitcoin, ethereum and cardano (thanks stimi), but with these new insane capital gains tax proposals Im a little hesitant.

On a side note I bought my first bitcoin back in 2013 for $27. Unfortunately I wasn't smart enough to hold it long enough to reap the rewards of the current $58,000 price...?

 

[danimalia]

I don't understand them well enough to jump in. That doesn't mean they're bad, just not for me. Even when gambling, I have to know the game well enough to know what the sucker bets are. Doesn't mean I won't ever make a sucker bet, but I want to damn well know I'm doing it. ?

Man, $27 to $58k in 8 yearswould have been one hell of a ROI!

 

[sablebrush52]

Bitcoin is interesting. It has no intrinsic value and the mining of it is an ecological disaster. In the past year some big names have attached themselves to extolling it, much to their own benefit. As long as the crypto market doesn't become a "pump and dump" people won't get wiped out. It's too unstable to be a currency. It's too unstable to be a meduim of exchange. It's not backed by anything, not even guns. There's nothing to stop a thousand competitors from being launched.
It reminds me of the tulip mania, except that you could actually hold a tulip.

 

[bullet08]

I don't invest. My wife does. She understands money whole lot better than I do. I either spend or I don't. I don't like to think too much about what makes the world go around.

 

[Chasing Embers]

I don't like to think too much about what makes the world go around.

Me either. Not enough time on the planet to get terribly invested in matters I can't change.

 

[karam]

One of my brothers just got a job in an upcoming cryptocurrency developer, he's a software engineer. I'm not up to speed with cryptos but he is, he says "if it gets regulated it'll all be over". I told him that by default everything gets regulated sooner or later.

Some times I wonder if I'm just way behind the curve, that all classic economic theories/practice since ancient Sumer may get shaken up by digitization and networking, then my head hurts and I abandon the thought. I recall Mark Zuckerberg's hearing, listening to politicians clearly not having a clue about how Facebook works and makes money is not encouraging. You'd expect either they or their courtiers at least SHOULD have a clue.

Agree with what @sablebrush52 says otherwise.

 

[lukasstrifeson]

I think the practicality of a de-centralized currency will show it's value when global politics become more volatile.

Whatever comes of this RMB vs USD 'Cold War' right now, I have a suspicion crypto will benefit.

Plus, the future is digital (and virtual/augmented). Stuff like Ethereum is just starting to explore the possible "real world" applications of this de-centralized authentication/instant transaction.

 

[jackets]

I recently splurged a little on bitcoin, ethereum and cardano (thanks stimi), but with these new insane capital gains tax proposals Im a little hesitant.

On a side note I bought my first bitcoin back in 2013 for $27. Unfortunately I wasn't smart enough to hold it long enough to reap the rewards of the current $58,000 price...?

Don’t forget to stake your ADA!

 

[cshubhra]

1. Due to various reasons I believe it is a bubble and will eventually burst making the gamblers lose their shirt, and in general cause a lot of grief
2. Currently the greater fool theory is in effect - So you can really make a killing if you can find a greater fool to offload your stuff
3. The behavior of financial markets can stay irrational for many years, longer than the ability of a rational investor to stay solvent - So there is no investment strategy here regardless of the fact you are a bull or a bear. It is pure gambling
4. The technology may have a lot of potential uses - But currency is not it

 

[STP]

I’ve been in and out of cryptocurrency a few times. It’s fun to dabble, but I wouldn’t risk my 401K in it… even though there’s a risk in stocks too. If only my crystal ball worked ?

 

[deuceswild818]

100% invested, I'm either flying or I'm dying like a bi-polar 19 year old college girl with a history of family drama.

 

[cshubhra]

I’ve been in and out of cryptocurrency a few times. It’s fun to dabble, but I wouldn’t risk my 401K in it… even though there’s a risk in stocks too. If only my crystal ball worked ?
View attachment 77885

Value Based Investing - Every stock has an intrinsic value. It is the current discounted value of all future expected profits. That is why, price of a stock is expected to rise as it does more business.

Stocks provide risk, because the future expected profits are a guessing game. If you are optimistic you will perceive the value to be higher than a pessimistic. Also, the ability for a company to generate revenue/profits is dependent on a lot of other factors. So an individual stock may not give you the return you seek.

You control the risk of individual stocks by diversifying in a basket, so the risk evens out. There is still a lower residual risk.

On the other hand, a crypto currency has no intrinsic value, and therefore it is a gamble

 

[deuceswild818]

Value Based Investing - Every stock has an intrinsic value. It is the current discounted value of all future expected profits. That is why, price of a stock is expected to rise as it does more business.

Stocks provide risk, because the future expected profits are a guessing game. If you are optimistic you will perceive the value to be higher than a pessimistic. Also, the ability for a company to generate revenue/profits is dependent on a lot of other factors. So an individual stock may not give you the return you seek.

You control the risk of individual stocks by diversifying in a basket, so the risk evens out. There is still a lower residual risk.

On the other hand, a crypto currency has no intrinsic value, and therefore it is a gamble

Yeah it's not the currency that has value, it's the technology behind the currency(blockchain).

 

[telescopes]

Value Based Investing - Every stock has an intrinsic value. It is the current discounted value of all future expected profits. That is why, price of a stock is expected to rise as it does more business.

Stocks provide risk, because the future expected profits are a guessing game. If you are optimistic you will perceive the value to be higher than a pessimistic. Also, the ability for a company to generate revenue/profits is dependent on a lot of other factors. So an individual stock may not give you the return you seek.

You control the risk of individual stocks by diversifying in a basket, so the risk evens out. There is still a lower residual risk.

On the other hand, a crypto currency has no intrinsic value, and therefore it is a gamble

It is, by any definition, a pyramid scheme. It supports organized and unorganized crime. And it is terrible for the environment. And it will become regulated once the oligarchs are able to use it to bring governments to their knees. Anything without intrinsic value is a pyramid scheme.

 

[telescopes]

Watch this

 

[Jaylotw]

I know a guy who was Bitcoin mining. It was all magic and too complex for me to comprehend. He heated his house with the heat coming off the equipment in his basement. And made a bunch of money, I guess? Is it real money, perceived money, credit, imaginary? I couldn’t tell. It all seems so flimsy and vaguely criminal to me.

I work on farm. I grow vegetable. I sell vegetable for cash. Cash go to bank. I get check. Check go back to bank. I get cash again. I give cash to bait shop. He give me worm. I catch fish, then go work. Start all over. Simple life.

 

[ron123]

Bill Maher says it's BS? I'm all in...

 

[lukasstrifeson]

1. Due to various reasons I believe it is a bubble and will eventually burst making the gamblers lose their shirt, and in general cause a lot of grief
2. Currently the greater fool theory is in effect - So you can really make a killing if you can find a greater fool to offload your stuff
3. The behavior of financial markets can stay irrational for many years, longer than the ability of a rational investor to stay solvent - So there is no investment strategy here regardless of the fact you are a bull or a bear. It is pure gambling
4. The technology may have a lot of potential uses - But currency is not it

In your opinion, what is stopping crypto from being (or at least functioning) a fiat currency?

- - -

Value Based Investing - Every stock has an intrinsic value. It is the current discounted value of all future expected profits. That is why, price of a stock is expected to rise as it does more business.

Stocks provide risk, because the future expected profits are a guessing game. If you are optimistic you will perceive the value to be higher than a pessimistic. Also, the ability for a company to generate revenue/profits is dependent on a lot of other factors. So an individual stock may not give you the return you seek.

You control the risk of individual stocks by diversifying in a basket, so the risk evens out. There is still a lower residual risk.

On the other hand, a crypto currency has no intrinsic value, and therefore it is a gamble

Some would argue that the blockchain tech behind crypto holds a certain value.

 

[cshubhra]

Bill Maher says it's BS? I'm all in...

I agree with you, the messenger looked fairly dumb. I could not watch for more than a minute.

I still believe the message is correct. I don’t know anything about the messenger’s credentials, so assuming that he is dumb - it may be the case of a broken clock, and right two times a day ?

 

[telescopes]

German Currency after WW1. The trip to the moon gives you a great view of the earth until you blow some vital equipment. Or the utility companies decide to tax the Hell out of people using the electricity running the mega computer hubs.