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I read about it first in The Intelligent Investor By Graham, but it's nice to get a more in depth description of this anecdote. One of my friends once asked me
by pimmen 9y ago
I read about it first in The Intelligent Investor By Graham, but it's nice to get a more in depth description of this anecdote.
One of my friends once asked me how the growth in cryptocurrency value i an unsustainable bubble when so many smart and math proficient people believe in it. This is a handy bit of Newton trivia to make the point that the intelligent investor is not necessarily the one with the best math proficiency but the one who understands and abuses market folly. When everyone goes right look if there's anything of value people might've missed to the left.
- gautamnarula 9y agoSmart people moving into cryptocurrency and cryptocurrency being a bubble aren't mutually exclusive in another way: the long term potential of cryptocurrencies could be valid, even if it's in a short term bubble. I think there are a lot of parallels between cryptocurrency/block chain tech now and the dot com bubble in the 90s. During the dot com bubbles fortunes were made and lost over nothing and there were many scams and vaporware business, but the underlying tech was sound and if you could identify the real businesses (e.g. Amazon, eBay) from the trash you could still make a lot of money in the long term even as the bubble popped and the market crashed. In a way, the bubble popping was good in a 'creative destruction' sort of way for clearing the brush (scammy and terrible companies) so the real ones could emerge and thrive. I think something similar will happen with cryptocurrency and blockchain tech.