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I agree with you on the El Salvador part, but not on the investment part. > Investments are sound based on probability and risk beforehand. Investing in bitco

I agree with you on the El Salvador part, but not on the investment part. > Investments are sound based on probability and risk beforehand. Investing in bitcoin had a limited downside (lose 100%), but a very high upside (reaches it's initial goals). For me, the potential gains outweighed the low probability. I consider myself very lucky that I made some money (wasn't crazy to put all my money in there). But for me, when it would have gone to 0, I still feel it was worth the risk. But of course, with such a high risk high reward investment, only invest a small % of your total money.

the_gastropod 4y ago
Boy do I have the investment for you! Give me your life savings, and I'll give you 50% equity in my Evil Empire. I plan on taking over the planet by 2028. What an upside! Only risk is losing 100%—that's practically nothing in comparison! Or I guess you could buy lottery tickets. Probably a slightly less insane way to "invest" your money.
- koonsolo 4y ago
  Both seems like a bad idea. Bitcoin on the other hand, made me a shitton of money :D Have a nice day.
gopuck16 4y ago
What you've stated here is your experience, now if you try to extrapolate the thinking/investment model you've used to large number of people - there is very limited upside and very high downside.
- koonsolo 4y ago
  No it stays the same if you have an investment portfolio and only invest max 5% in high risk assets. Assume you invest 1% of your portfolio in Bitcoin. What is your downside? 1%. Not that high, is it? What is your upside? Maybe x100, so double your entire portfolio. Right now, you came late to the game, so don't expect a x100. The risk is probably still the same, but the upside way lower. But when Bitcoin was still young, the upside was definitely worth the risk. And it didn't even live up to its original intent. Imagine the price if it did!
  - SketchySeaBeast 4y ago
    If we think like this why wouldn't I invest 1% of my portfolio in lottery tickets? At worst lose 1%, at best x1,000,000 upside?
    - prottog 4y ago
      You could consider lottery tickets as an OTM option expiring in a week with those payoffs, I suppose. If you spread 1% of your portfolio over a year and buy lottery tickets every week, you're effectively losing 1% per year with a very small chance of becoming very rich. There are probably better places to put your 1% on. ;-)
      - SketchySeaBeast 4y ago
        > There are probably better places to put your 1% on. ;-) I totally agree, but the argument being made is that "the potential upsides outweigh the low probability". That's not investing, that's gambling.
        koonsolo 4y ago
        Your argument is that once it's high risk, it's gambling. Sorry but that is just not the case. It's a ratio. If you don't understand this, then I agree that you should stay away from anything that involves risk management. Let's say we play a game where you throw a coin 3 times in the air. If it's not 3 times head, I'll pay you $1. If it's 3 times head, you pay me $10. Your chance of winning is pretty high, while my chance is low. Yet, I would love to play this game.
        SketchySeaBeast 4y ago
        > Your argument is that once it's high risk, it's gambling. No, my argument is that once it's a matter of "you could lose everything or make it big!" is gambling. > It's a ratio. With totally unknown values. > Yet, I would love to play this game. This is exactly what the people who currently hold bitcoin are suggesting to those who don't.

the_gastropod 4y ago

Boy do I have the investment for you! Give me your life savings, and I'll give you 50% equity in my Evil Empire. I plan on taking over the planet by 2028. What an upside! Only risk is losing 100%—that's practically nothing in comparison! Or I guess you could buy lottery tickets. Probably a slightly less insane way to "invest" your money.

koonsolo 4y ago
Both seems like a bad idea. Bitcoin on the other hand, made me a shitton of money :D Have a nice day.

gopuck16 4y ago

What you've stated here is your experience, now if you try to extrapolate the thinking/investment model you've used to large number of people - there is very limited upside and very high downside.

koonsolo 4y ago
No it stays the same if you have an investment portfolio and only invest max 5% in high risk assets. Assume you invest 1% of your portfolio in Bitcoin. What is your downside? 1%. Not that high, is it? What is your upside? Maybe x100, so double your entire portfolio. Right now, you came late to the game, so don't expect a x100. The risk is probably still the same, but the upside way lower. But when Bitcoin was still young, the upside was definitely worth the risk. And it didn't even live up to its original intent. Imagine the price if it did!
- SketchySeaBeast 4y ago
  If we think like this why wouldn't I invest 1% of my portfolio in lottery tickets? At worst lose 1%, at best x1,000,000 upside?
  - prottog 4y ago
    You could consider lottery tickets as an OTM option expiring in a week with those payoffs, I suppose. If you spread 1% of your portfolio over a year and buy lottery tickets every week, you're effectively losing 1% per year with a very small chance of becoming very rich. There are probably better places to put your 1% on. ;-)
    - SketchySeaBeast 4y ago
      > There are probably better places to put your 1% on. ;-) I totally agree, but the argument being made is that "the potential upsides outweigh the low probability". That's not investing, that's gambling.
      - koonsolo 4y ago
        Your argument is that once it's high risk, it's gambling. Sorry but that is just not the case. It's a ratio. If you don't understand this, then I agree that you should stay away from anything that involves risk management. Let's say we play a game where you throw a coin 3 times in the air. If it's not 3 times head, I'll pay you $1. If it's 3 times head, you pay me $10. Your chance of winning is pretty high, while my chance is low. Yet, I would love to play this game.
        SketchySeaBeast 4y ago
        > Your argument is that once it's high risk, it's gambling. No, my argument is that once it's a matter of "you could lose everything or make it big!" is gambling. > It's a ratio. With totally unknown values. > Yet, I would love to play this game. This is exactly what the people who currently hold bitcoin are suggesting to those who don't.