A salient lesson for those jumping onto financial bandwagons

mayonnaise

MFW_ASAP wrote: »

So I was right, and hence your emotional response earlier. You've cashed out an earlier holding and then bought back in at a much higher level. You also have a significant amount of your wealth invested and hence the panic as the price falls from $900 to $600 in a single day and hence the ramping you're doing on here and in the housing boards.

It all makes sense, and it's all as anticipated. No wonder you're so emotional. Calm down and re-evaluate your holdings. If you're over exposed, then step back from the position.

MFW, you fail to grasp something here.
I don't know about you, probably you got a house, wife, a couple of kids. We go to work, pay the bills, walk the dog, love the wife, the kids, spend money, invest, retire...in other words: life.

Then you have an alternative online universe, where the Max Keiser show is your source of news, where you scour infowars.com for 'the truth' because mainstream media are controlled by the illuminati or the bilderberg group (as are the banks). In this world you get together with like minded revolutionaries and discuss blockchains and satoshis and rejoice on how all this will undermine the New World Order planned by above mentioned illuminati. It's comfortable in this world because you can mine bitcoins thru your grahpics card and then go to a btc exchange, press F5 and see how 'wealthy' you've become.
What's not to like? It's the perfect escape for those failing in real life.

So I'm afraid you're not going to get much out of discussing investments with dryhat.
It's not about investing, it's a whole different mindset.

dryhat

Exchange rate slowly approaching £500.

I wouldn't be surprised to see £750 by year end once the backlog at the exchanges eases.

Having already taken out many times more than my original investment, rises or falls don't bother me since all the bitcoins I have effectively cost me nothing.
But it's still nice to see the price rising and one's wealth increasing, particularly when it's due to solid fundamentals.

MFW_ASAP

dryhat wrote: »

Superb analysis. Nice work Sherlock.

Now get back to work or you'll never get that mortgage paid.

Why do you keep deflecting away from my point? You've dodged it in about 4 posts now. Trying to distract me with personal attacks isn't working, why not give in and respond to my post?

dryhat

MFW_ASAP wrote: »

Why do you keep deflecting away from my point? You've dodged it in about 4 posts now. Trying to distract me with personal attacks isn't working, why not give in and respond to my post?

What do you want me to respond to?

MFW_ASAP

dryhat wrote: »

What do you want me to respond to?

To my previous post.

MFW_ASAP wrote: »

You seem to be wasting a lot of your 'gains' by buying material items (I think you said you bought a car the other week and some other tech stuff). You're the classic mug punter. You buy in low, make a decent profit and then sell a portion of the asset to buy some crap.You then re-invest some more money (from monthly salary or wherever) and buy back in, but at a higher level than your first investment. You keep doing this and the average price of your holding goes up and up. Then when the inevitable crash comes, instead of having a healthy paper profit to cushion you, you end up wiped out.

Once the golden journey has ended (and it always does), you'll have a car that will eventually be sold for scrap, a smart phone and other tech that will have an operational life of three years, and nothing else to show for it. All of the stuff you're buying has little resale value.

What's even worse is that you are cashing in your bitcoins to buy a smartphone and so when the value of bitcoins go up, you're losing out on that gain. A £200 smartphone bought with bitcoins to the value of £200 could end up costing you £1000 if the bitcoins you've cashed in rise in value to £1000.

This is why I call you a mug punter. You are cashing out and then buying back in at a higher level and you are using your cashed in bitcoin money to buy items that will have no value in a few years, not only preventing you from pocketing gains as bitcoins rise, but you'll also have nothing to show for your investment success because you're buying depreciating assets (tech and cars)

One born every minute.

IronWolf

MFW_ASAP wrote: »

To my previous post.



What's even worse is that you are cashing in your bitcoins to buy a smartphone and so when the value of bitcoins go up, you're losing out on that gain. A £200 smartphone bought with bitcoins to the value of £200 could end up costing you £1000 if the bitcoins you've cashed in rise in value to £1000.

This is why I call you a mug punter. You are cashing out and then buying back in at a higher level and you are using your cashed in bitcoin money to buy items that will have no value in a few years, not only preventing you from pocketing gains as bitcoins rise, but you'll also have nothing to show for your investment success because you're buying depreciating assets (tech and cars)

One born every minute.

Ye but to be fair, you could say that about buying anything. Whats the point in making money if you arent going to spend it?

dryhat

Oh right.

Well, out of all the original money I put in ( and in total it was only a modest amount) I have taken out many, many times over and some of it was used to pay for a new roof, solar panels and a car.

The tens of thousands of pounds worth of bitcoins that I still have effectively cost me nothing and I am holding onto them.
Apart from the odd item like a new phone which I needed anyway and which cost about £40 in real terms.

Any other questions?

I'm sat here chatting on a few forums, playing with my new phone and watching the snooker and "earning" hundreds of pounds an hour.

I could literally chat all day about Bitcoin or any other topic if you wish.

MFW_ASAP

IronWolf wrote: »

Ye but to be fair, you could say that about buying anything. Whats the point in making money if you arent going to spend it?

That's not the issue. It's withdrawing from a rising investment to buy stuff, then buying back to the same investment at a higher level that is crazy.

Cashing out when an investment has peaked, cashing out on a peak to buy back in on a trough or even cashing out early because you really need the money (job loss, better investment, etc.) is one thing. Cashing out of a rising investment to buy a smart phone or a car? Bonkers.

Especially when that investment can double overnight (if dryhat is to be believed). That £200 smartphone could end up costing you £400 - the original £200 for the phone and the £200 lost investment return. Better to save up the money for the smart phone than to cash in an investment that is doing well. Better to borrow money for a car than to cash in a rising investment that more than covers the interest on the bankloan.

MFW_ASAP

dryhat wrote: »

I'm sat here chatting on a few forums, playing with my new phone and watching the snooker and "earning" hundreds of pounds an hour..

So your smartphone is earning more money that the equivalent amount invested in bitcoins?

dryhat wrote: »

I could literally chat all day about Bitcoin or any other topic if you wish.

We're not chatting about bitcoins, we chatting about how you're a mug punter.

dryhat

MFW_ASAP wrote: »

We're not chatting about bitcoins, we chatting about how you're a mug punter.

Well there's no argument there. Guilty as charged.

I just happened to have got very lucky this time though and I'm enjoying it.

But apart from that side of things, I am first and foremost a Bitcoin enthusiast and recognise it as a revoltionary technology and believe it has the potential to change the world.

Spending bitcoins is good for the Bitcoin economy too; which I am happy to do.