4 ms·

Holy hell, this is some crazy advice. If you have a sizable savings that you have been building for 5 or more years then the vast majority of your savings shou

by pfisch 13y ago

Holy hell, this is some crazy advice. If you have a sizable savings that you have been building for 5 or more years then the vast majority of your savings shouldn't be invested in any single asset.

fragsworth 13y ago
It's only optimizing for happiness, based on expected outcomes. The only thing that might be crazy are the numeric expectations.
- dragonwriter 13y ago
  > It's only optimizing for happiness, based on expected outcomes. The only thing that might be crazy are the numeric expectations The craziness is doing it with one asset and trying to maximize happiness based on assumptions about that asset and not with all possible alternative assets and trying to maximize overall happiness. Well, one part of the craziness. Really, what you should be doing is considering (1) overall returns of competing investments, (2) overall risk of competing investments, and (3) the degree to which those risks are independent, and (4) your own sensitivity to risk, and then combine assets and allocate investment funds among them so as to, achieve the maximum expected return possible with enough diversification to acheive a risk profile you are willing to accept.
  - fragsworth 13y ago
    Oh, I agree. The difference is no other asset class that a non-accredited investor can put their money in has even remotely close to the same growth possibility as Bitcoin. IRAs, 401ks, stock indexes, and other asset classes don't do much other than protect you from inflation. You can pick specific funds or companies, but their value is more or less correctly priced and you're just gambling if you try to pick and choose, because you don't have inside knowledge. Bitcoin (cryptocurrency) is different, because it hasn't been priced yet by investors who truly understand the technology or its implications. It's like the stock market for web companies in 1995. As an analogy, we're maybe in 1996 or 1997.
    - justinhj 13y ago
      It's like that yes except that you don't know whether bitcoins are like Amazon or Pets.com. Investing in anything as volatile as bitcoins is straight up gambling
eru 13y ago
Tell that to house ownerser.

by pfisch 13y ago

Holy hell, this is some crazy advice. If you have a sizable savings that you have been building for 5 or more years then the vast majority of your savings shouldn't be invested in any single asset.

fragsworth 13y ago

It's only optimizing for happiness, based on expected outcomes. The only thing that might be crazy are the numeric expectations.

dragonwriter 13y ago
> It's only optimizing for happiness, based on expected outcomes. The only thing that might be crazy are the numeric expectations The craziness is doing it with one asset and trying to maximize happiness based on assumptions about that asset and not with all possible alternative assets and trying to maximize overall happiness. Well, one part of the craziness. Really, what you should be doing is considering (1) overall returns of competing investments, (2) overall risk of competing investments, and (3) the degree to which those risks are independent, and (4) your own sensitivity to risk, and then combine assets and allocate investment funds among them so as to, achieve the maximum expected return possible with enough diversification to acheive a risk profile you are willing to accept.
- fragsworth 13y ago
  Oh, I agree. The difference is no other asset class that a non-accredited investor can put their money in has even remotely close to the same growth possibility as Bitcoin. IRAs, 401ks, stock indexes, and other asset classes don't do much other than protect you from inflation. You can pick specific funds or companies, but their value is more or less correctly priced and you're just gambling if you try to pick and choose, because you don't have inside knowledge. Bitcoin (cryptocurrency) is different, because it hasn't been priced yet by investors who truly understand the technology or its implications. It's like the stock market for web companies in 1995. As an analogy, we're maybe in 1996 or 1997.
  - justinhj 13y ago
    It's like that yes except that you don't know whether bitcoins are like Amazon or Pets.com. Investing in anything as volatile as bitcoins is straight up gambling

eru 13y ago

Tell that to house ownerser.