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> - NFTs are not a good investment Why would anyone think a silly picture of an ape would ever be a good investment? I fully understand that something is "wor

> - NFTs are not a good investment Why would anyone think a silly picture of an ape would ever be a good investment? I fully understand that something is "worth 300 bucks" if everyone agrees it's worth 300 bucks. I also understand that Apple stock is also overpriced but in the end there is a big gap between an overpriced stock and a silly picture of an ape...

dragontamer 5y ago
Apples stock actually has a low PE ratio of 30ish, suggesting it's well priced (a tad over twenty but in a market where everything is 30ish PE or worse). PE ratio is probably the best metric for what is or isn't overpriced.
- Ekaros 5y ago
  With huge amount of cash, well positioned in market and so on. Tesla should really be the example of overpriced tech stock...
filoleg 5y ago
> Why would anyone think a silly picture of an ape would ever be a good investment? Well, it depends on the investment horizon you are looking for. Long-term? Fully agreed, betting on a random picture of an ape as a long-term investment is rather silly, unless you either treating it as a lottery ticket or know something others don’t. Short-term? I can easily see why someone would think it is a good investment. There is a hype going around NFTs right now, they routinely go up in price significantly, and if you want to have your chance at a risky short-term play, then why not. As long as you recognize that it is very high risk (with a high chance of your investment not panning out), and you are willing to drop some spare money on it (and being fully ok with losing them), then I don’t see any harm in it. Note: I primarily defend it from a risky short-term investment point of view. Because while I own no NFTs and have zero desire to do so, I regularly do small short-term risky investments by playing weekly OTM stock options. No, i am not hoping to become rich off of that. But it is a fun way to break up the routine, learn more about technical fundamentals, and I am still net positive on those risky plays. Though to underline, this is a tiny portion of my portfolio, and one should not treat very high risk plays (regardless of whether it is NFTs or OTM weeklies) as a basis for one’s portfolio. Moderation and not building up illusions of the high likelihood of success with those types of high-risk investments are the key.
- dehrmann 5y ago
  > they routinely go up in price significantly Since NFTs are so easy to mint, I'm not convinced these aren't almost all fake sales that drum-up interest in NFTs in order to sell the cheaper ones.
- 22c 5y ago
  The simple fact is that some people have a lot of ETH that they did not get at the current market price. Those people will pay a lot of ETH for something that when you convert it to $ seems to make no sense but if you look through the lens of "I have done extremely well already and this whole thing is an experimental platform" then it starts to justify why some people pay seemingly absurd amounts of "money" for what everyone who's "in on it" knows is basically just a cool digital trinket. ie. If you bought 100 pebbles for $1 you'd probably trade me one of your pebbles for a nice drawing I made. The fact that pebbles are now $100 ea. is irrelevant because you're happy enough to just sell a single pebble and get $100 back and then do fun stuff with the 99 remaining pebbles.
  - filoleg 5y ago
    I've never thought of it from this angle at all, but suddenly everything starts making even more sense now. Thanks for posting this, because in countless threads and discussions on the topic, I haven't seen anyone mentioning it.

dragontamer 5y ago

Apples stock actually has a low PE ratio of 30ish, suggesting it's well priced (a tad over twenty but in a market where everything is 30ish PE or worse). PE ratio is probably the best metric for what is or isn't overpriced.

Ekaros 5y ago
With huge amount of cash, well positioned in market and so on. Tesla should really be the example of overpriced tech stock...

filoleg 5y ago

> Why would anyone think a silly picture of an ape would ever be a good investment? Well, it depends on the investment horizon you are looking for. Long-term? Fully agreed, betting on a random picture of an ape as a long-term investment is rather silly, unless you either treating it as a lottery ticket or know something others don’t. Short-term? I can easily see why someone would think it is a good investment. There is a hype going around NFTs right now, they routinely go up in price significantly, and if you want to have your chance at a risky short-term play, then why not. As long as you recognize that it is very high risk (with a high chance of your investment not panning out), and you are willing to drop some spare money on it (and being fully ok with losing them), then I don’t see any harm in it. Note: I primarily defend it from a risky short-term investment point of view. Because while I own no NFTs and have zero desire to do so, I regularly do small short-term risky investments by playing weekly OTM stock options. No, i am not hoping to become rich off of that. But it is a fun way to break up the routine, learn more about technical fundamentals, and I am still net positive on those risky plays. Though to underline, this is a tiny portion of my portfolio, and one should not treat very high risk plays (regardless of whether it is NFTs or OTM weeklies) as a basis for one’s portfolio. Moderation and not building up illusions of the high likelihood of success with those types of high-risk investments are the key.

dehrmann 5y ago
> they routinely go up in price significantly Since NFTs are so easy to mint, I'm not convinced these aren't almost all fake sales that drum-up interest in NFTs in order to sell the cheaper ones.
22c 5y ago
The simple fact is that some people have a lot of ETH that they did not get at the current market price. Those people will pay a lot of ETH for something that when you convert it to $ seems to make no sense but if you look through the lens of "I have done extremely well already and this whole thing is an experimental platform" then it starts to justify why some people pay seemingly absurd amounts of "money" for what everyone who's "in on it" knows is basically just a cool digital trinket. ie. If you bought 100 pebbles for $1 you'd probably trade me one of your pebbles for a nice drawing I made. The fact that pebbles are now $100 ea. is irrelevant because you're happy enough to just sell a single pebble and get $100 back and then do fun stuff with the 99 remaining pebbles.
- filoleg 5y ago
  I've never thought of it from this angle at all, but suddenly everything starts making even more sense now. Thanks for posting this, because in countless threads and discussions on the topic, I haven't seen anyone mentioning it.