3 ms·
I was responding to the proposition that people will, on average, lose money trading crypto. I guess it depends on what you're averaging over, but I took it to
by mrtranscendence 5y ago
I was responding to the proposition that people will, on average, lose money trading crypto. I guess it depends on what you're averaging over, but I took it to mean people, not money, and in that interpretation people could on average earn money.
- user-the-name 5y agoThe average of the sum of money gained or lost by each individual person is negative. Whether a larger number of people gain any amount money than those that lose any amount of money is less easy to analyse, but, given that a person can only lose 100% of their money (not taking into account massively unwise loans people might take out, for simplicity) but some people do gain much more than 100%, it is likely that average person has lost or will lose money.
- mrtranscendence 5y ago> given that a person can only lose 100% of their money [...] but some people do gain much more than 100%, it is likely that average person has lost or will lose money. But with a long enough time horizon and generally rising prices, we can make the probability of any one person losing money as close as we want to zero. For a given unit of crypto only the last person in its chain of buyers loses money, left holding it when prices finally drop.
- user-the-name 5y agoThat is not something that happens in reality.