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Yup. AMZN traded at around $100 in 1999, then $12 just a few months later. Now if you believed in Amazon's business model and bought at that low you could have
by colemannugent 9y ago
Yup. AMZN traded at around $100 in 1999, then $12 just a few months later. Now if you believed in Amazon's business model and bought at that low you could have made about 120 times what you invested if you sold today.
For me I look at crypto the same way. Crypto's value is going to fluctuate over time, but I think that over the long term (5-10 years) it will become more stable and more valuable. A huge dip is a great time to buy.
It also helps to only buy crypto for fun and consider it akin to gambling :)
- Jtsummers 9y agoThese currencies, as they like to call themselves, will only become stable when there's a basket of goods you can exchange them for at a consistent price. Right now it's all speculative investing and a little bit of spending as a currency. Once you can buy $10 of goods, consistently, for 0.0001 BTC (or whatever) then the price will be stable and the currency can establish itself. The same is true for the other cryptocurrencies. Being unpegged from any other currency or any goods, and nearly useless for conducting business transactions means the value will remain wildly unstable with a significant non-zero risk of failure or effective failure (going to $0 or something not much above that with little interest in conducting business using the currency).
- tbabb 9y agoAgree 100%. Cryptocurrency can't be money until it measures stable value. And that stability is literally impossible without a central bank. http://www.bzarg.com/p/what-bitcoin-shows-us-about-how-money-works/ http://www.bzarg.com/p/what-bitcoin-shows-us-about-how-money...
- qsucvatz 9y agoThat long term stability may be impossible with a central bank.