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> So basically your multiplier might go away at any point. Hedging, hedging, hedging. There are enough derivatives in the coin world to have a pretty decent po
by zdkl 9y ago
> So basically your multiplier might go away at any point.
Hedging, hedging, hedging. There are enough derivatives in the coin world to have a pretty decent portfolio growth, if you're willing to manage it and deal with the tx/transfer fees
- clappski 9y agoBut if there is a bubble, hedging coins against each other is probably the worst thing you can do, right?
- zdkl 9y agoIf you've cashed out your initial investment plus a healthy return, anything left in that portfolio is gravy though, right?
- z3t4 9y agoThe problem is that they do not hold any value compared to for example a baseball card.
- z3t4 9y agoA baseball card has a sentimental value that makes it more valuable then the actual paper it's printed on. Virtual goods can also have sentimental value, like a cool hat in team fortress. Stock shares has a value because of future dividend. A house have value because you can live in it or rent it out. Now think about a crypto currency, it only holds value because someone is willing to buy it, so think about why you want to buy it and what will happen when people want to liquidate their "investment".
- zdkl 9y agoYour argument makes sense and I'm not advocating for people to replicate the experience, especially not with the current prices. My argument merely goes: if you threw away some marginal amount of initial (real) cash at something, and for some reason that something paid you back in full, with bonus and interest, then the price can tank as much as it wants since I'm cashed out. From there I don't care if 90% of the unit price is pure speculative pressure, as long as I find a counterparty for my trades. Does this make sense to you, if not why?
- z3t4 9y agoI guess you can "day trade" and only own them for a short amount of time. Any suggestion on exchange/marketplaces ? My experience (Bitcoin) is that it's too slow with small volumes. Then there's a lot of risk, like the exchange getting hacked.
- zdkl 9y agoHonestly exchanges are a shit show. There used to be a small scene where people traded directly via forums/voice comms but like all good things that's over because of bad actors. The main issue IMO isn't settlement speed but the ludicrous exchange fees. If you're willing to put some work in I reckon you should be able to "manually" find counterparties for the major altcoins, but to my knowledge there are no decentralised exchanges that offer reasonable liquidity.
- Anderkent 9y agoIt doesn't matter how much you started with, and how much you already took out. As long as you have stuff invested into the coin, you're not cached out - you have value that you could take out of the system that's exposed to the fluctuations.
- zdkl 9y agoYou're technically correct, but I fail to see how being exposed to the fluctuations on a fraction of disposable income is a bad thing.