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Absolutely right. Putting 5-10% of your net worth in something like this is being innovative and forward thinking and taking a calculated risk. Putting 90-95%

Absolutely right. Putting 5-10% of your net worth in something like this is being innovative and forward thinking and taking a calculated risk. Putting 90-95% of your net worth in something like this is serious, foolhardy gambling.

ericb 13y ago
Highhorses are fun to ride, but if you put in 5% of your networth at any point > 8 months ago, it is likely that you ended up with 90-95% of your net worth in Bitcoin.
- theorique 13y ago
  You have a good point. It definitely takes a lot of mental discipline to rebalance on a schedule with liquid paper wealth.
  - ericb 13y ago
    And if we're being legal, a willingness to take it on the chin with short term capital gains rates on everything you rebalance.
    - theorique 13y ago
      Interesting question (I don't know the answer). Does appreciation through currency exchange count as a short term capital gain?
- stingraycharles 13y ago
  I had not considered this, and you have a very good point. Most of those people had been getting used to the idea of being rich, that it will be very rough for them to adjust. Besides, the way their money is lost made it so much worse. The global value of btc crashing would be one thing, corruption would be another, but this level of incompetence.. it's almost harder to digest since they most likely are not guilty of any crimes either, unless stupidity would be a crime.
  - ericb 13y ago
    Too true. It is interesting that rationally speaking, considering windfalls or lottery winnings "house money" is incorrect--money is money. This attitude can lead you to cognitive errors that cost you more money in the long run. On the other hand, if we think about the coping strategy for people who've been Goxed, I can see where if you can disregard the winnings as "paper gains" it is much easier to get on with life thinking "I only lost 10k."
    - Carltonian 13y ago
      This thread is awesome. Goxed is now my new favorite word (sorry for the more initiated if I'm already late to the party). It's just like being doxed - you exposed yourself in some way, and some clever bastard got the better of you for it.

ericb 13y ago

Highhorses are fun to ride, but if you put in 5% of your networth at any point > 8 months ago, it is likely that you ended up with 90-95% of your net worth in Bitcoin.

theorique 13y ago
You have a good point. It definitely takes a lot of mental discipline to rebalance on a schedule with liquid paper wealth.
- ericb 13y ago
  And if we're being legal, a willingness to take it on the chin with short term capital gains rates on everything you rebalance.
  - theorique 13y ago
    Interesting question (I don't know the answer). Does appreciation through currency exchange count as a short term capital gain?
stingraycharles 13y ago
I had not considered this, and you have a very good point. Most of those people had been getting used to the idea of being rich, that it will be very rough for them to adjust. Besides, the way their money is lost made it so much worse. The global value of btc crashing would be one thing, corruption would be another, but this level of incompetence.. it's almost harder to digest since they most likely are not guilty of any crimes either, unless stupidity would be a crime.
- ericb 13y ago
  Too true. It is interesting that rationally speaking, considering windfalls or lottery winnings "house money" is incorrect--money is money. This attitude can lead you to cognitive errors that cost you more money in the long run. On the other hand, if we think about the coping strategy for people who've been Goxed, I can see where if you can disregard the winnings as "paper gains" it is much easier to get on with life thinking "I only lost 10k."
  - Carltonian 13y ago
    This thread is awesome. Goxed is now my new favorite word (sorry for the more initiated if I'm already late to the party). It's just like being doxed - you exposed yourself in some way, and some clever bastard got the better of you for it.