An interesting opinion piece in The Age:
https://www.theage.com.au/business/markets/crypto-is-just-an…
The article references this speech:
https://www.federalreserve.gov/newsevents/speech/brainard202…
I'm interested if there are any in the OzB community who "invested" in crypto, still have a holding, and remain positive?
Hesitation #1: Fear - that prices will drop further to 0 (in cases like celcius, and luna yes you have a point to be fearful but thinking that all of crypto will fall is just foolish)
Hesitation #2: Greed - that prices will drop even more before we decide to buy in which often leads to fomo when prices go back up.
So the next question to answer is how do we sensibly find a way to invest that reduces #1 fear and #2 greed.
Answer that question and you'll make a lot of money I reckon…
$20k isn’t low, whales are eating up offloaded coins and keeping the price high. Don’t buy in
You won’t make money without risk
What kind of risk you talking about?
You buy Wesfarmers you are worried about people not going into Bunnings / Officeworks / Kmart etc.
You buy BTC what are the risks. You can see wallet IDs but you have no idea who those people are.
Not sure where the bottom is to start with. Not all cryptos recover based on historical prices. Maybe BTC and ETH are sure shot gainers but thats the issue, you never know.
Too much FUD right now. But you are right, for those with high risk appetites, it sure is worth a shot.
10% security
80% genuine investment
10% speculation
Buy when markets panic sell when markets are hysterical.
Don’t aim for maximised profits (sell when expensive buy when cheap) and you’ll probably average a good return over a medium term.
Not advice just sounds reasonable to me.
So wherever Bitcoin fits in this is your answer (mostly speculation)
Your ratios are badly off
0% security
1% genuine investment
99% speculation
And all these crypto bros are no doubt enjoying sorting out whatever crumbs of capital gains they got for the tax man
So the ONLY thing that makes money/cash/bank accounts/shares/etc more "real" than crypto is "belief" - the FAITH of a greater number of people. Doesn't mean either belief is more correct (or smart). e.g. If "money" in general were more valid than crypto, then historical black swan events like stock market crashes wouldn't have occurred. OPINION of "the market" (people) changed overnight, and the "asset" value crashed.
BOTH are just numbers on paper/in a ledger/on a computer. NEITHER is backed by anything real of intrinsic value or substance - it's decided by opinion or faith. And since opinions change, and people lose and gain faith, all you have to do is buy when most are rolling their eyes mocking… then wait… and sell when they're kicking themselves they didn't buy in low as well.
So is cash
Not necessarily true. It is backed by government ability to raise taxes (how ever crushing that might be to the population).
Nonsense. The value of cash does not fluctuate wildly like some cryptos. Funny you say this even after spectacular collapses of things like Terra.
It is somewhat stable. Yes its affected by inflation but the swings are not that wild unless you take poor country currencies like Zim dollar as an example.
I was referring to the articles nonsensical "pyramid scheme" claim, as if crypto is some kind of con because it relies on other people's opinion/faith and fluctuates - when if for example you overlay bitcoin with the stock market in a graph, the two have fallen IN LOCKSTEP. So if crypto is a con, pyramid scheme, whatever… then cash is all those same things too. And they both ARE. Because just like bitcoin, cash is no longer based on anything tangible. It's only "security" is other people agree it has value… until they don't - and most people don't realise this. So they're mocking people for standing on a poorly made bridge that just sunk, while standing on a larger poorly made bridge themselves that will sink ten thousand times more people when it gives way.
While cash doesn't fluctuate wildly RIGHT NOW… one day, thanks to scum like the world bank creating problems so every nation is in debt to them, so they get to dictate our decisions… everyone is going to wake up and find the financial system has crashed overnight, banks around the world have sequestered our savings, and we'll need a car boot full of cash to buy a can of soup. e.g. The Great Depression. I'm sure they wouldn't agree "cash is secure."
The US dollar is backed by 11 aircraft carriers. That's quite different to being backed by nothing.
It's not really honest to compare the major world currencies with that of third world nations, or with flavour-of-the-day memecoins. It conveniently handwaves why these currencies have become firmly established as the vehicle for global commerce.
I don't think OG Bitcoin nor Ethereum are scams. Most others with 120% staked APY aren't going to go up in value anytime soon.
The price can be hugely influenced by people that got in early and bought enough. Blockchain i think is the future. The ability to see who buys what, once the wallet has been doxxed you know who it is. The fact that the authorities are able to find people who have stolen coins from others by using the block chain to trace them is a huge benefit. You don't need banks / warrants. But you can't freeze wallets unless within an exchange, I think most banks will offer crypto wallets (Not your keys not your coins). I think the fact crypto is code that can be hacked means that we will see a lot of services go down in the future unless their security is air tight.
Now the dollar. Inflation. Stagnant wage increases. Insurance. Corruption. Don't put all your eggs into one basket.
The fact that the authorities are able to find people who have stolen coins from others by using the block chain to trace them is a huge benefit. You don't need banks / warrants
How is this different to today?
The ability to see who buys what, once the wallet has been doxxed you know who it is.
You must enjoy your bank statements being uploaded to the dark web?
How is this different to today?
No banks required.
You must enjoy your bank statements being uploaded to the dark web?
They aren't?
edit: MAYBE my bank statements are already on the dark web. Because what's stopping them selling my info?
No banks required.
So how you going to convert all your crypto to fiat? You going to stand there getting a coffee and your coffee either appreciates or depreciates by 5%?
@Jazza2400: Oh shit, you don't want to order coffee at 8am, the gas fees are gonna be insane. Gotta be smart and get your coffee at night.
To summarise, for me crypto is 100% a pyramid scheme. I accept this and will invest a little into it as I have been doing so.
But pretending that crypto is some regulated and risk-less investment is a joke. It is highly volatile, filled to the brim with scamsters and even good people ready to pull the rug on others because of the sheer amount of money involved. Even so called stablecoins and projects with seemingly good backing have failed like Luna and Terra. So anything can happen anytime.
BTC can go to 1 million or zero. I accept all the risks and will make it a small part of my portfolio. But I think of it as more of gambling than an investment and I am ok with it.
I hope it goes to zero, I'd buy so much with $5.
$5 / 0 = ?
$5 / 0 = LUNA
But pretending that crypto is some regulated and risk-less investment is a joke
It is the same as any unregulated investment scheme. Only those who issue the investment (units), promoters etc make money. All the investors who are left holding it get nothing.
it is not an opinion it's a fact
Yes it is, but there's a lot of money to be made or lost, depending how strong your positions or patience is.
Watch coffeezillas YouTube video about the safemoon scam. Great investigation about just one scam out of thousands in the cryptov space
If you never sell. You never lose.
LUNA and Terra holders will agree 100%
Crypto is about freedom to move your money, tradfi is slow and have daily limit on how much you can move without telling them your purposes, etc., doesn't exist for crypto
it's true in a way for some of these new altcoins that are just pump and dump schemes
I feel like nvidia and ATI were the real winners lol
speaking of crypto its creeping its way up again
With prices low isn’t this the time to buy in to cryptocurrency?
You won’t make money without risk, so what’s the hesitation?