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>>From 3rd Jan 2009 until today, "Many often lose everything" is not true. All holdings are in the money. This is correct if you bought on 3rd Jan 2009. It dep
by kamaal 6y ago
>>From 3rd Jan 2009 until today, "Many often lose everything" is not true. All holdings are in the money.
This is correct if you bought on 3rd Jan 2009. It depends on when you bought it. Whenever you bought it, you need some ready to buy it from you at a higher price. So as long that is true, you make profit. In fact that is profit and loss by definition.
>>We don't know of the future.
Exactly, ensure some one will buy from you at a higher price. So as long as you do this, you should be fine.
>>The thing is, in all asset classes, it tends to be the way that early investors reap massive gains. Housing. Stocks. Cryptocurrency.
Not true. Take housing for example, Housing tracks people ready to stay at a place for employment and other opportunities. Its value is tied to the businesses around. Stocks themselves are tied to how the company does well.
What does Bitcoin track? Electricity spent to mine it? Speculative people hoping the next idiot comes along to bail them out? Well electricity isn't exactly scarce. Supply of electricity is unlimited for all practical purposes.
>>The great thing for you is it is still very early days for Cryptocurrency. It was only invented in 2009!
We don't know. Only the next people ready to invest $60K for a coin can decide that. And then the ones ready to put in $70K. Eventually some body needs to be present who can put in something like a $500K or a million.
>>What should be concerning is the sustainability of a 'scheme'.
Indeed.
>>When unlimited USD can be printed at the desires of the administration, how can a fixed emission asset NOT outperform something inflationary?
Because unlike USD backed by US government and its military. Bitcoin owners are in no position to invade some country like Iraq to liquidate themselves.
- rfd4sgmk8u 6y agoThe most beautiful thing about bitcoin is it needs no government or military, it just is. Math > Militaries. Value of money is tied to its supply. What happened in 2020? https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2
- kamaal 6y agoNo the most beautiful thing about Bitcoin so far is having people who are ready to buy it at $XK/coin helping those who bought it at $X-1K/coin. The ugly thing about Bitcoin will be when coin holders realise there are no people ready to put in $X+1K/coin, so people who bought at $XK will be ready to sell at $X-1K, and those who bought at $X-1K will eventually sell at $X-2K.. then $X-3K, then $X-4k... It's ok for people who bought at less than what is selling now. Not that much for those bought above it. In all this those who bought at $XK, will be happy to minimise their losses at $Xk - $1K and so on...
- rfd4sgmk8u 6y agoI'm sorry dude, you really don't understand how this works. It isn't about finding a greater fool willing to pay $1k more than you did. The reality is there are plenty of people that will keep buying. There is no 'run out of buyers'. Years ago we spoke of 'buyers of last resort'. This used to be suckers like me. Its now large institutions playing games with each other. This world is far larger than you are imagining. I will buy BTC as long as I am able, with fiat currency, regularly. I do this as a hedge against inflating fiat currencies, and as you can buy a part of a coin, the actual price per unit doesn't matter as much. What matters is the store of value over longer times, in an deflating asset class. Can I recommend you watch some of Andreas videos at https://aantonop.com/videos/ https://aantonop.com/videos/ to inform yourself?
- ThankYouBernard 6y ago> you really don't understand lol all you crypto fanatics think that the only possible reason anyone is skeptical is because they don't understand.
- WA 6y ago> the actual price per unit doesn't matter as much. What matters is the store of value over longer times Contradicting statement. Or how do you define "store of value" if not in USD?
- rfd4sgmk8u 6y agoI wanted to follow up and say: a) you can buy part of a coin, it scales to 8 decimal places! You don't need to buy a whole coin. b) it is money already, there is no need to 'sell' c) profit and and loss by definition gets a little weird with currencies. Purchasing parity power comes into play. When trading shells for widgets, you might end up with more or less widgets, but they can be more or less valuable per unit. If you are still thinking folks are playing the "buying btc with usd to sell for more usd later" you haven't quite grasped what is actually going on. :-)
- kamaal 6y ago>>If you are still thinking folks are playing the "buying btc with usd to sell for more usd later" you haven't quite grasped what is actually going on. :-) Then please explain us in clear words what is going on.
- ChainOfFools 6y agoThey think BTC will replace fiat altogether such that anyone left holding dollars/"shitcoins" will be royally f-ed, and have to beg the coiner fiefs for the chance to rent a humble plot on their lands in perpetuity. /s, but not nearly as much as it ought to be.
- joncrane 6y ago> Housing tracks people ready to stay at a place for employment and other opportunities. Its value is tied to the businesses around. To a certain extent, but ask the people in Vancouver what's going on with housing prices (tip: it's being used as a store of wealth and for speculation by Chinese people and others) Many, many houses sit empty so it has nothing to do with people wanting to live there. >Well electricity isn't exactly scarce. Supply of electricity is unlimited for all practical purposes. Tell that to the people of Texas! Some of these assets have a component which tracks to real world utility, but often other factors dwarf the so-called fundamentals.