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Misleading: "Over just the past three years, the price of bitcoin has increased by as much as 150% and declined by as much as 77%. Double-digit percent price dr
by linsomniac 2y ago
Misleading: "Over just the past three years, the price of bitcoin has increased by as much as 150% and declined by as much as 77%. Double-digit percent price drops are routine among cryptocurrencies. Remember that you need a 100% return just to make up for a 50% decline."
I agree with the article that Bitcoin isn't an investment, it's a speculation, but...
They are mixing an overall return with a time-period return to promote some fear. That 100% return you need is from the bottom, but they are quoting the 150% return from before the drop.
Specifics: Jan 1 2022 @ $47K to Nov 2022 @ $16K, Jan 2025 $98K. At $16K, yes you need like 150% return just to get back to where you started. Actual return from the bottom was over 600%. If you got in at $47K, you do not need a 150% cumulative return to recover from the big drop.
The average investor shouldn't have the majority of their money in speculative instruments. However, my FIL gave me some great advice: Take a little of your money and invest it in something you like. Say, 5%. It makes the investing a little more fun. Of course, I love it because after he said that I invested in something I liked and it went up 15x...
- kgwgk 2y ago> Misleading: "Over just the past three years, […] > They are mixing an overall return with a time-period return to promote some fear. > Specifics: Jan 1 2022 @ $47K to Nov 2022 @ $16K, Jan 2025 $98K. The article is dated January 24, 2024. It was roughly in the $40-$50 range.