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This looks bad, but I assume that with time the price will recover. I mean, bitcoin will eventually reach the point where it doesn't recover ever again, but tha
by fzfaa 4y ago
This looks bad, but I assume that with time the price will recover. I mean, bitcoin will eventually reach the point where it doesn't recover ever again, but that point hasn't necessarily been reached yet.
- itsoktocry 4y ago>This looks bad, but I assume that with time the price will recover. This is a fallacy that leads to holding poor investments. There's an opportunity cost to every dollar invested beyond the drop in price.
- fosk 4y agoYou are also running with an assumption that whatever investment they may have used the same funds for, would have netted a gain (or a lower loss). The opportunity cost argument is only valid if in the alternative investment you actually end up in a better spot, that's not a given.
- ericd 4y agoYeah, especially given that the risk-free rate is currently pretty strongly negative in real terms.
- quickthrowman 4y agoBuying the dip works every time, until it doesn’t.
- rideontime 4y agoCan you explain the thought process behind that assumption?
- fzfaa 4y agoHistorically bitcoin has gone up and down in cycles. There is no reason to think it won't come up again. But I may be wrong as I know very little about crypto.
- pessimizer 4y agoIt's a consequence of the Law of Averages. Sometimes things go up, sometimes things go down, but for some reason all things will return to some historical mean often referred to as "reasonable" or "normal."