3 ms·
> You can look at the countries titled with the euphemistic "developing markets" which have historically had extremely high risks AND a much lower return than i
by killerstorm 4y ago
> You can look at the countries titled with the euphemistic "developing markets" which have historically had extremely high risks AND a much lower return than in lower risk countries.
Hmm? Not sure what you mean. High-risk countries' bonds pay higher interest than low-risk countries' bonds. E.g. Ukraine was paying 10% interest in USD when US was paying 1%. Of course, expected value might be lower if you average over all such countries, but we are talking about a "happy case" here where a bad event did not happen.
> how can you price the risk of anything in the Blockchain space, like say Ethereum getting completely wiped out by a hack, etc?
Well, you can't calculate the risk but you can get 1000000% return (the actual return over 7 years for ETH presale). Or you can calculate the risk and get 5% return. It's your choice.
- polygamous_bat 4y ago> Well, you can't calculate the risk but you can get 1000000% return (the actual return over 7 years for ETH presale). Or you can calculate the risk and get 5% return. It's your choice. "Past returns are not indicative of future performance" is a mantra you will see everywhere in the financial world. If not doing any risk calculation whatsoever gives you 1000000% return them you didn't "invest" anything, you just gambled with it.
- killerstorm 4y agoIs startup investing gambling? Please do not substitute a statistical model of something for the thing itself.