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> When the split happens, sell all of your coins on the forks that you disagree with, and use the resulting money to buy coins on your preferred fork. Or keep
by mathgenius 9y ago
> When the split happens, sell all of your coins on the forks that you disagree with, and use the resulting money to buy coins on your preferred fork.
Or keep all the forked coins in case you are wrong ?
- Taek 9y agoIf you are keeping all the forked coins, you probably don't have a strong ideological opinion. It's not about being 'wrong' in this case, it's about ideological alignment. If you follow my advice, you will more or less end up with the same amount of money as you started with, regardless of where the prices of the coins end up (as long as you wait through the early volatility stages). If you aren't ideologically aligned, holding onto all forks is a perfectly sane choice.
- monort 9y agoProfit trumps ideology even when you hold strong views. For example, in this experiment small payments for correct and "don't know" responses sharply diminished the gap between Democrats and Republicans in responses to "partisan" factual questions. http://www.nber.org/papers/w19080 http://www.nber.org/papers/w19080
- Taek 9y agoChoosing to be on the minority chain is not less profitable than choosing to be on the majority. If you sell your majority coins, you will sell them for majority price. As a result, you will end up owning more minority coins than you had originally, though the US dollar value should be about the same. Profit comes from knowing how the markets will move before they do (and performing arbitrage), not from owning the asset that has the greatest market cap.