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by brianwawok 3183 days ago
Having your life savings in cold fusion juice presses is just as stupid as having no stock in the above at all.

You need to think of the reason for an investment. If you are set for life, and want to gamble on it... cool, buy BC. You could also go to vegas, or bet on horses, or start a HFT trading shop. All are reasonable ways to gamble for fun and possibly profit.

If you are looking to build a nest egg to retire when you are old, it is very unlikely that BTC is a good route for that ;)
1 comments
koonsolo 3183 days ago
Investing in BTC is like investing in startups. And a lot of people are making money with that. And so are a lot of people in BTC.

Please don't compare this to Vegas, where the odds are known to be against you.

Have a small/tiny % of your investment in cryptocurrency is a smart move.

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brianwawok 3183 days ago
> Investing in BTC is like investing in startups.

So something that only people with significant incomes and the ability to lose 98% of their investments should touch it? I am fine with that definition. Not sure most BTC investors would qualify to invest in a startup though (see qualified investors law)

> Please don't compare this to Vegas, where the odds are known to be against you.

The odds are against you in many markets. I would argue the odds are against you in BTC. It is a zero sum game, and there are many people looking to steal or scam. In a zero sum game with scammers, your EV is negative unless you yourself also want to steal or scam (which is a different conversation to head down.

> Have a small/tiny % of your investment in cryptocurrency is a smart move.

Why? Should you put a tiny % of your investment in horse races? For most people, a small bet with an unknown payoff is not something they should touch.

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koonsolo 3183 days ago
> only people with significant incomes and the ability to lose 98% of their investments

If you only invest 1%, you can only lose 1%. And with bitcoin, you can invest at $1 if you want.

> I would argue the odds are against you in BTC.

Seems that in reality they weren't.

> Should you put a tiny % of your investment in horse races?

Still talking about Vegas? In that case you don't seem to understand risk-return. NOBODY should invest in horse races or Vegas, or the lottery. Nobody! Not rich, not poor. Why? Because the risk-return ratio is known to be < 1. Why? Because casino's and bookmakers make sure it is < 1.

The risk-return of Bitcoin is not known to be < 1, and neither are that of startups. Therefore people can actually make money investing in these high risk things, by averaging them out.

Let me put this in another way, if you place a huge amount of Vegas bets, you average out the risk-return, and you will end up with < 1 return. If you place a huge amount of 'bets' on startups and similar investments, you can end up with > 1. That's why people are making money with it.

Instead of arguing with me, maybe you should consider that there might be a tiny bit in truth to all of this. And then maybe that wisdom can make you some decent money in the future. But I won't lose any sleep over it if you don't. I have a sane, pretty conservative investment strategy, and it's doing fine.

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