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The relatively little money (and little experience with startups) that most retail investors have would not be enough to diversify their risk and thus be equiva
by eezurr 5y ago
The relatively little money (and little experience with startups) that most retail investors have would not be enough to diversify their risk and thus be equivalent to gambling. I think the figure is 5% of startups are successful?
Anyone who has become wealthy through crypto became so because they gambled. And, bitcoin has a history of being manipulated. I had a friend who was part of a network that communicated to him when to buy and sell bitcoin. He mentioned "the whales" a few times when talking about it.
- fleddr 5y agoInteresting statement, since "certified" investors invest money into startups which have a failure rate of 95%. But these people are of course not "gambling", because they bet at 50 horses at once. And for all their experience, they continuously fail. It all seems very arbitrary. Personally, I think "gambling" is the wrong word. It's high risk investing. When I put all my chips on "red", that's gambling. When I read about a startup, believe in their idea and see potential, yet am proven wrong, I made an investment mistake. It's not gambling unless one blindly invests without any research.
- brewdad 5y agoI've heard exactly this argument from every gambler who walked into a casino with a "system". You might come out better than someone blindly laying bets, but you are still very much gambling.