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BITCOIN
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It's all about risk tolerance and common sense.
Richard Thaler has spoken of Myopic Loss Aversion. This is where people panic sell because we hate the thought of losing money (on paper) far more than we enjoy making money. This frame of mind causes short term thinking, and even if we do have a long term view (we should have a time frame of 20 years or more), we vastly reduce our gains by playing it too safe by investing too heavily into dividend stocks, gold and bonds.
The billionaire investor Bill Miller, who now has Bitcoin in his portfolio recently said "Volatility is the price you pay for performance"
Even Warren Buffett once wrote that investors often think that risk and volatility are the same thing, when they are not.
Bitcoin needs to be treated like a hyper growth stock. You don't bet the farm on it, and like Amazon and Tesla in the past it could easily lose 90% of it's value. But that doesn't mean it will be dead or a scam.
The blockchain IMO will prove to be more important than the internet, and to have a small amount of your portfolio in it over the next one to two decades will give great rewards, but you just have to stay the course.
Remember:
There will be a huge transfer of wealth to millennials in the upcoming years. The vast majority of those have grown up hating the banks, and now have apps on their smartphones to invest/trade assets.
They will not be buying gold. They will be buying growth stocks and crypto.
If you want to be successful in the next couple of decades you are going to have to see the investing world through their eyes, not your own.
As for Bitcoin:
In western countries, it will prove to be a better store of value than Gold.
In countries of hyper inflation with the local currency being devalued and the weak dollar being a poor alternative it will prove a safe haven from corrupt governments.
And in third world countries it will prove a faster and cheaper alternative to sending money by the likes of Western Union.
Evolve or Die.5 -
$280 million put into the new Bitcoin ETF in its first 20 minutes of trading, one of the biggest ETF openings (top 15) in history and more than $GLD.
Can't deny that is pretty impressive!0 -
onthebench said:The trouble with having 1% of your portfolio in bitcoin is that it keeps turning into more than 1% of your portfolio.0
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Hexane said:Scottex99 said:YellowStarling said:Genuine question: for those knocking Bitcoin, do they (consciously or not) substitute "cryptocurrency" (as a whole) with it, or not? In other words, are those not in favour of Bitcoin also not in favour of other cryptocurrency projects, or just Bitcoin? I know the title of this thread is specific but some posts appear more aimed at the crypto space in general, hence my question.
Just wondering whether any anti-BTC are more bullish on alternative projects, perhaps those that are aiming for the scalability/TPS targets more akin to fiat monetary systems, or smart contract/app networks, or something else. E.g. Proof-of-Stake projects like Ethereum 2.0, Cardano, Polkadot, or hashgraph projects like Hedera, etc.
So it's gone basically nowhere in that time, other than down a lot and back up again.
Need another "few months"?
I’ve said 50 times on here I don’t know where the price is going short term, except long term I’m almost certain up and to the right.
Everyone here that is bullish has already held through multiple harsh crashes, it’s volatile, it comes with the territory. In fact not only did I hold, I bought all the way down and back up again.So yeah, see you at 100k, don’t worry I’ll come and find this post first to let you know when it happens0 -
Futures ETF this year.
Spot ETF next year.
Well known old school investors like Ray Dalio now have btc in their portfolio.
The future is here.
BTW, just a stat for you all:
In the last decade keeping 99% of your wealth in cash doing nothing and having 1% in btc would have outperformed the S&P 500.
But of course we all know that is too risky for some
Maybe Marcus will raise their interest rate by 0.05% so the MSE community can sleep better on a night.3 -
I know very little and well done to Bitcoin holders. Given where it is today and I'm assuming you can make a cash sale then why not switch a percentage into equities such as a global tracker fund. ? The move in the last year can only be described as " parabolic plus plus " and such moves often end in similar reversals. Might never happen but if you set the chart to 5yrs or more you can see the picture. 2018 slumped 50% from the peak. Since 2020 it's up from 10,000 to over 60,000. Since we're now talking ETF's then why not a bit in VWRL.?
BTCUSD | Bitcoin US Dollar - Live Chart Price Currency Exchange Rate (tradingeconomics.com)
FBhBn2oWQAQu0lq (1200×685) (twimg.com)
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Plenty of people will be doing that.
The only problem with doing 4-5 years of crypto investing, when you go back to traditional it feels like an absolute bore. Of course more money is the only aim of the game but you switch back into gold or some stock that does 2.39% in a year (up or down) and it's... boring.
It wouldn't be sensible to have huge chunks of your net worth in crypto for many many years, even for someone as bullish as I am. I have a rough sketch of a plan in my head, when to cash out and what to do with the profit. Let's hope I action it before Crypto Winter II0 -
RolandFlagg said:
BTW, just a stat for you all:
In the last decade keeping 99% of your wealth in cash doing nothing and having 1% in btc would have outperformed the S&P 500.
But of course we all know that is too risky for some
Maybe Marcus will raise their interest rate by 0.05% so the MSE community can sleep better on a night.But when people start discussing sharing knowledge of other investment opportunity with potential high risk/high return like Bitcoin, Alt coin, you will be attacked, be called a scammer, a gambler or encouraging gambling in this forum. Some people will call you a pumper. Those who call people sharing info like BTC on MSE, a pumper shows a lack of understanding how P&D work and what element involved. Understanding how P&D work is crucial skills if you want to get involved in DIY investing. How come a retail investor here on MSE would be able to influence the price and thus benefit form the price movement when the market cap of BTC is already US$1T+ and hundred of million of people already got involved?
For these people sharing knowledge info of high risk/high return, volatile investment might attack their comfort zone because all they know is Vanguard life strategy and saving account.
If you think investing in other assets is a gambling just because the risk involved, then any other investment product could be associated with gambling as you are also taking a risk, your money even in very well diversified fund could go down -40% within a week during the market crash. Noone sensible would want to take a risk for nothing; high risk will mean a potentially high return. It is all about risk vs reward and some people prepare to take a much higher risk looking for potential of a much higher return because they have knowledge of the product that other people might not know.
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adindas said:RolandFlagg said:
BTW, just a stat for you all:
In the last decade keeping 99% of your wealth in cash doing nothing and having 1% in btc would have outperformed the S&P 500.
But of course we all know that is too risky for some
Maybe Marcus will raise their interest rate by 0.05% so the MSE community can sleep better on a night.If you think investing in other assets is a gambling just because the risk involved, then any other investment product could be associated with gambling as you are also taking a risk, your money even in very well diversified fund could go down -40% within a week during the market crash. Noone sensible would want to take a risk for nothing; high risk will mean high return. Some people prepare to take a much higher risk with potential of a much higher return because they have knowledge of the product.
1) High returns almost certainly imply high risk. High risk does not imply high returns.
2) Sensible investors who take risks with serious money do not put all their money into one high risk. They use multiple high risk investments and some lower risk investments on the grounds that a single failure will not destroy all one's wealth. Putting money into one Coin is like investing in one share. Putting money into a range of Coins is like investing in one fairly small risky sector (eg small drug development companies). You should be putting money into a wide range of sectors, and cerainly not just into one share. Doing otherwise should certainly be seen as gambling.
3) With share investing one must assume that the market will broadly rise given sufficient time. The more risk one takes the more time one should allow. So a temporary 40% drop is not something you should panic over. The assumption is backed up by history and the thought that if it isnt true you and the rest of the world will have greater problems than the value of your investments as it would imply that global industry has stopped making profits.0
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