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Is there really so little else to invest in that plugging money into magic scarcity is the best bet?
by dclowd9901 9y ago
Is there really so little else to invest in that plugging money into magic scarcity is the best bet?
- cwkoss 9y agoIf you are a value investor, everything on the S&P500 has been overpriced and overbought for the past several years. Best bet is all relative. I think allocating a small percentage of wealth to an asset with 10% chance of going up 20x, and 90% change of going to 0 (net expected value 2x) is a rational diversification. Crypto seems to be fairly uncorrelated to broad market. (This is actually a more bearish perspective than I hold, but wanted to point out that it can be rational to hold an asset which is likely to fail as long as there exists a significant chance of order-of-magnitude returns)