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There are anecdotes, even in this very thread, of people mortgaging their house to invest into crypto. This isn't a case of off-the-cuff investments, one must k
by cercatrova 4y ago
There are anecdotes, even in this very thread, of people mortgaging their house to invest into crypto. This isn't a case of off-the-cuff investments, one must knowingly and willingly mortgage their house to retrieve the money to put into an investment. At that point, one must take care of their own financial health if they do something so willingly.
To your speeding analogy, most of these people are losing proportionally. Unless they're margin trading, if they put in 500k from their house mortgage into a coin which crashes, they lose at most 500k, they don't lose more than that, which is a 1 to 1 proportional amount. Now on the other hand, there are some Robinhood traders who turn 5k into -750k [0], usually through options, and that is what I'd call disproportional, and I have some sympathy for that, often because those people didn't even know their losses could be so large.
[0] https://www.cbsnews.com/news/alex-kearns-robinhood-trader-suicide-wrongful-death-suit/ https://www.cbsnews.com/news/alex-kearns-robinhood-trader-su...