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You've got bigger balls than me. Cryptocurrencies, Tesla, and penny stocks are the assets I absolutely won't short, no matter how much I think they're overvalu
by nostrademons 6y ago
You've got bigger balls than me. Cryptocurrencies, Tesla, and penny stocks are the assets I absolutely won't short, no matter how much I think they're overvalued, because the low liquidity in them means that they can easily shoot up 10x and wreck your margin position even if you're right.
(Disclaimer: Long Bitcoin, got in at prices between $6.5-8K in 2018. Previously sold @$11K in Dec 2017, after having bought in 2014 at $800. It tends to rise 10-40x from peak to trough each time, which means we could see $100-150K Bitcoin this cycle. There's also the chance that this is "the big one" - the cycle where the dollar collapses entirely and cryptocurrency becomes the new global unit of account and medium of exchange. IMHO the tail risks facing the dollar and the U.S's hegemonic position have never been higher.)
- Quarrelsome 6y ago> the cycle where the dollar collapses entirely and cryptocurrency becomes the new global unit of account and medium of exchange. I really don't think life tends to be as exciting as you hope it is.