5 ms·
Bitcoin is just pure speculation at this point. Like gold, Bitcoin's value comes from the fact that more and more people are interested in buying it. Unlike sto
by raphaelj 9y ago
Bitcoin is just pure speculation at this point. Like gold, Bitcoin's value comes from the fact that more and more people are interested in buying it. Unlike stocks, it does not generate real money through dividends. For every person that got rich with Bitcoin, some other unlucky guy will lose the very same amount of money. When the bubble will burst, it will be zero sum game.
Index-based ETFs should be the way to go for casual investors. Put some money in half-a-dozen index funds from the US, EU and Asia, and you'll get a low-fee, relatively stable and 7% average yearly ROI.
- creatornator 9y agoI'm not sure if this is true--in Wall Street, too, there is a seller for every buyer. Every time someone gets a killer deal on some stock, someone else got equally ripped off. As far as I can tell, the distinction between BTC and stocks is trivial--the price of both is driven by supply and demand.
- johnwheeler 9y agoThe accounting isn’t zero sum with stocks in that capital is supposed to beget more capital through value creation. That’s the intrinsic value of company shares. So, while there might be a winner and a loser, the world still ends up with more ‘wealth’.
- AznHisoka 9y agothe IPO is supposed to work this way. After the IPO, all bets are off. It's just traders, machines, and ego's trading exchanging among each other. Once upon a time, having a share of a company always meant you were getting a share of their revenue (dividends). Now, it's primarily hoping there's a bigger fool. Which 99% of the time there is because a lot of us put money into the stock market without consciously investing (ie. 401ks)