4 ms·
similar problems exist in vc-land and even public equities. if you owned a s&p 500 fund in 2000, then you owned a piece of enron.
by dropnerd 4y ago
similar problems exist in vc-land and even public equities. if you owned a s&p 500 fund in 2000, then you owned a piece of enron.
- yunohn 4y agoOwning a piece of Enron through the S&P500, and actively buying shitcoins is quite a big difference.
- dropnerd 4y agothere's no widely adopted index fund in the crypto world. to get exposure to a variety of ideas, one inevitably buys some that don't work and yes, some where the project runners commit fraud.
- yunohn 4y agoThe problem being discussed is not the difficulty of asset diversification. Lest you forget: > People who are unable to discern scam from not scam get scammed. This is a common refrain, along with Do Your Own Research (DYOR). As if scams are that obvious. However, my additional point was that I have successful crypto friends, that actively and knowingly invest in shitcoins and justify it as “money they can afford to lose”. Also, just to be clear - are cryptocoins an investment, a store of value, a currency, or equity-equivalent in a company? Because the goal always seems to be buying enough of every coin to maximise speculative windfalls. That is /strictly/ not the goal of a traditional index fund.
- dropnerd 4y agodifferent tokens have different purposes, but you could describe vc investing as maximizing speculative windfalls, and that's how many traders view their tokens. i can't speak to your friends' behavior, but you can buy tokens and do well without putting money behind the do kwons of the world.
- yunohn 4y agoAgain, how are you comparing VC investors with Retail traders? There’s a clear difference between the two demographics. I’d go one step further to posit that most crypto traders are not even day traders, so much less experienced.