Bitcoin - Yes or No?
hello everyone, as I'm currently learning about cryptocurrencies, in particular bitcoin, I started to think a lot about this topic. And I already heard a lot of different opinions and thoughts - but I think here you can never get enough ;) so - what are YOUR thoughts concerning crypto and bitcoin? Alex.
If you invested $1,000 in Bitcoin in 2011, you would now be worth over $27 million dollars.
ughhhh..... too late? what do you think about the future of Bitcoins? I see its all about timing... A friend if mine is sure that the life cycle of Bitcoin is over... I would be interested to invest also in any other cryptocurrency but I'm currently in the learning process.... so also collecting the thoughts as you see :)))
Great advice for any of us still existing in 2011. Not so helpful for the rest of us.
For me, regulatory risk is way, way too high. Crypto has been adopted so far as either means of exchange for illicit businesses (where they'll accept the volatility, because that risk is still better than the expense of laundering money) or investor speculation. For it to become a fundamentally viable currency, adoption would have to be so widespread that the government would see it as a threat to its own ability to enact monetary policy and collect taxes. I just can't imagine a world where that's allowed.
It's just an interesting fact, calm down lmfao
Exactly. I got into a weirdly heated debate about this at a BBQ a few weeks ago. I was talking to a crypto currency buff and making this exact same point—crypto survives only as long as the govt allows it to.
It's no longer asymmetrical enough. Even in a best-case scenario the risk/reward doesn't make any sense. I'm not a believer in allocating cash towards activities that yield no learning either...
Market neutral position in crypto and investing in truly promising ICOs. You can do a 2/3x if you invest in the first round of ICOs if you have done proper due diligence over 3-6 month. Considering the fees/futures commissions you probably have a 1.5-2.5x over 3-month. This is what 'crypto VCs' do. Great thing is that you can do the same with small amount of capital and diversify a lot.
However trading is to me as successful as playing blackjack - you probably can do your research and have your odds in your favor, but its still pretty random - if a platform announces it has been hacked the market is down 5%...
Simply put, its a no for me, dawg.
I include crypto in my investment portfolio as a high risk asset class given my age. I've put in a relatively modest amount of money that wouldn't change my life either way today, and on the off chance it has another run, then there is potentially life changing wealth creation down the road. I think there is a real value proposition in terms of serving the non and underbanked populations of the world, as well as streamlining cross-border transactions.
However, to prior posters' point, there is an adoption and regulatory risk element, as well as a pretty steep education cycle. I used to think crypto was pure hogwash, then I started doing research to better understand the applications as a currency / store of value and the benefits of blockchain technology. It's also just an intellectually stimulating activity to learn about something new.
Long XRP :) haha
XRP is not even a cryptocurrency
I was about to construct a fact based response, then I got the joke. Well played lol
I think you're a bit late to the party fam...
There has been numerous posts on this topic but I'd suggest spending sometime and learning about the technology, the power of decentralization, other cryptos, ICOs, cryptography, and hashing. I learned a ton from the blog here. Its a three part audio documentary with the leading active hedge fund managers in the field, and with investors who are both optimistic and skeptical.
https://medium.com/john-pfeffer/an-institutional-investors-take-on-cryp…
I think the above article really does a good job laying out the potential for bitcoin. Essentially, the asymmetric payoff argument is still in play. Assuming everybody knows that it's in play, then everyone has an incentive to allocate a little bit of their investment portfolio. Given the finite supply, the increase in demand will push the price higher as many of the current holders are LT focused. Eventually LT holders will sell some of their positions to diversify/consume, which will create a cascade of selling and another crash. Then the process will repeat. This will continue for a while, but at some point, I think it replaces gold as "the store of value". The finite supply and the resiliency/anti-fragility(?) of the system should play a meaningful part of this transition. Once it is recognized as the best way to store wealth long term, then it's relative value will plateau.
In the meantime, I think everyone is right in that the biggest threat to it is government. It probably will even get blamed for the next economic calamity. It’s an easy boogeyman for politicians….However, I think what we're witnessing, at least in America, is political comedy at the moment, which could be a catalyst for a shift in political ideology away from big government. Education reform/disruption will have to play a meaningful role however.
Finally, even if we go the route of big government, I don't think "the government" has the ability to completely stop it given the system's resilience/anti-fragile properties. Additionally, banning it will only piss off some unknown proportion of voters by banning the use of private property. But who knows.
hey, one of the most helpful replies for me personally - thank you for sharing the article and your thoughts - very interesting to me! I found the article really good in terms of bitcoin potential and future. lately a friend of mine also started with the thought that the government is 'the worst enemy' and whether the government is able to stop the process or not .... Personally I also don't think they will be able to stop it 100% without consequences ...
If you have a fraction of your portfolio allocated to high risk investments, I see it as a reasonable allocation to consider.
Do you like throwing your money away?
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