Crypto Currency

[StuntMan12]

Rough day for bitcoin. Currently at $7083 american.

[Mr. Guru]

blood bath in the dow and s&p too

everything red

[forumname]

The scary thing about holding some of these (and there's no choice but to hold, we knew that going in that these things could go to zero...) is that there is really no fundamental value to them that would suggest a floor at any point. They could easily fall another 50% or more.
It's not like a traditional stock, where you can say "well, this is undervalued by 20% if you compare their P/E ratio to others in the industry..." or "it's trading way below book value!"
So anybody online telling you that these coins are "way undervalued" is just guessing. I hate to say that, but it's the truth.

It's refreshing to see someone who has skin in this madness but is still willing to recognize it essentially amounts to gambling. I hope you win!

[doulos]

As if crypto gambling is any different from stock picking. You see these stock market guys poo pooing crypto, and meanwhile most of them are throwing darts as well. It's hilarious.

[forumname]

As if crypto gambling is any different from stock picking. You see these stock market guys poo pooing crypto, and meanwhile most of them are throwing darts as well. It's hilarious.

I'm not a stock picker either, but it is fundamentally different. Companies at least have measurable value (if nothing else, they own computers, trucks, toilets, etc). Cryptocurrencies do not.

That said, stocks are essentially just a crap shoot as well.

[doulos]

I'm not a stock picker either, but it is fundamentally different. Companies at least have measurable value (if nothing else, they own computers, trucks, toilets, etc). Cryptocurrencies do not.

That said, stocks are essentially just a crap shoot as well.

But that's just it. For as much as it is different, it's basically gambling for nearly everyone engaged in it. Unless they are index investing. I just find it hilarious how most of the people I hear who have been ranting to me about tulips, roulette wheels, and slot machines, are basically engaged in the same process themselves, but doing it with their retirement money.

[audiopile]

The more I watch and learn the more I think the following:

Crypto - great place for traders, experienced traders who can read charts
Vanilla stocks - where investors should stay.

I too put some dollars into crypto but as an investor i?m totally out of control because i can?t read charts and can?t even look at a website to see what i actually invested in on a measurable level.

Enjoying the cannabis stocks these days; there is news, buyouts, mergers, and eventually financials and all that good old stuff to help me make decisions.

[Mr. Guru]

Did not see that.

I'll have to do some digging to see which companies are in this.

Thanks

[chuckcouples]

For anyone thinking of buying crypto currency, keep in mind some recent remarks by some heavyweights...


Warren Buffett: "It's probably rat poison squared"
Charles Munger: "trading in cryptocurrencies is just dementia"
Bill Gates: "It's a non-productive asset - I'd short it if there was an easy way to do it."

It's a little unsettling betting against smart men like that. But what can I say... I hope they're wrong. I think they have a bit of an inherent bias too, since they have become very wealthy as a result of the traditional financial system... which crypto threatens.

Can you explain the bold part of your comment? How does crypto currency threaten the traditional finance system? Also, how did Bill Gates get wealthy because of the traditional finance system?

[audiopile]

I was referring more to Buffet and Munger... although it's no secret that Gates did benefit greatly from his parents' wealth and influence, particularly his mom's. She was on the board of director's at First Interstate Bancorp, later bought out by Wells Fargo.

As for how crypto threatens traditional banking, one of its main attractions is the (eventual) ability to do financial transactions which are 1) faster than banks and 2) cheaper than banks. The wealthy bank stakeholders obviously do not like hearing this revolutionary talk about how crypto can potentially eliminate (or at least greatly reduce) their ability to gouge consumers. And so they are concerned mostly about their huge stream of passive income being disrupted - I can't say I blame them. But it does mean I have to take their constant criticism with a grain of salt.

Also the financial transactions are not centrally located like it is with banks which makes it a more secure and transparent system. There are still fees with crypto, which go to the miners and the trading platforms.

[BreadManPanarin]

Something made me go back and dig this up and read it. What a fun ride...

Anybody getting back in and hoping for another boom, or is it more likely to go further down than up?

[MZac]

Warren Buffet says something to the extent of: Stay away from investments that don't produce anything of any value.

Charlie Munger has gone on to call it 'turd', 'dimentia', 'rat poison'.

I've always had zero interest buying bitcoin (I purposely didn't use the word investing because it's a purchase, not an investment).

Probably the best thing I've read on it, I'll try to summarize:

Imagine someone made a pill that cured every form of cancer. Now the person that invented the cancer pill (crypto currency) openly published the ingredients to the pill and the recipe. It turns out that the ingredients are readily available to virtually everyone in the world and they are extremely cheap to acquire. So now you have an easy cheap way to cure cancer and everyone and their dog starts companies making these pills (bitcoin and other crypto currencies). There is obvious value to the cancer pill for millions of people and the companies manufacturing the pills price them with rapid increases and decreases. Some people paid less than a penny and some speculators paid over $20, 000 per pill at different times.

Before buying any crypto currency, ask yourself how much you would pay for a magic cancer pill?

[BreadManPanarin]

Before buying any crypto currency, ask yourself how much you would pay for a magic cancer pill?

I suppose that depends on how much money I have, and whether I have cancer or not.

[MZac]

I suppose that depends on how much money I have, and whether I have cancer or not.

Yes lol. And I suppose I'd just make the pill myself.

[Mr. Guru]

It's starting again


Buckle up for the next ride!