I starting dabbling in crypto in the last few months because some friends and I were a little bored and a little curious. At the moment we aren’t investing a lot but it’s been fun. We have no idea what we are doing but we are making money. My first instincts are how volatile it is and I also love that it runs 24/7.
My cousin got into the game years ago and made so much he was able to buy his house outright. I sure wish he had told the family about his little money making secret.
Is anyone here investing? I am using Robinhood and Coinbase. I like Coinbase better.
Can you really call it investing if cryptocurrencies don’t have definable inherent value? How do you know if you are underpaying or overpaying? It doesn’t mean you can’t luck into making money, but I’d call it what it is…speculating.
No, because it’s essentially antisocial. Central banks exist for reasons that have to do with currency and economic stability and stability of the nation. If you want to play with local dollars to spur local spending, okay, but inventing new currencies with no role or oversight in government – no.
Investing, but not in crypto. I don’t understand it and to me it’s gambling. I am probably too old for it. Both kids invested at different time. DS invested small amount long time ago in BTC with multiple swings up and down and now it’s like x100 what it was originally. DD invested a little in ETH few months ago. It lost half the following week and now keeps fluctuating. For both it’s more of the game and not investment.
My first , second, third and final rule about investing is that if I don’t understand it thoroughly or better, its not an investment, it’s a gamble. Have fun, hope you make money, hope you don’t lose important amounts.
The reason @Picklenut6 has no idea what they’re doing is that literally no one has any idea what they’re doing in the space. It’s a pure momentum play, easily manipulatable by a few with big interest or big social media followings. Don’t be the last one holding the bag!
Yes, it’s mainly for fun. I’m way too risk averse to dump anything significant in the space. My teen son opened an account when covid first hit and he’s had fun doing it with his group of friends.
Now that I’m in the space too, we share a little hobby together. We discuss what we learn and toss our hands up when we have no clue.
Blockchain is a valuable way of exchanging trust. The vehicle for that trust though is like an empty debit card is to sovereign currency, worthless. Just like the tulip craze, FOMO is the only thing keeping it “valuable.” Caveat emptor!
Most of my investments are in index funds but, earlier this year, I started dabbling in psychedelics start ups. It took me to a while to undo the brainwashing I had received in middle school about drugs such as LSD but evidence on the therapeutic potential of psychedelics is strong and growing.
@dragonmom: This. Absolutely. Now, we never invest in something we don’t understand. DH and I got burned early on with some “advisor” from one of the big firms who put us in something we didn’t understand at all, but he told us it was a sure thing. Yeah, yeah. Lost that money and developed your rule for ourselves.
Not a fan of crypto currency’s but I am a fan of blockchain technology.
The security and chain of ownership it provides when applied to the logistics of items ranging from firearms to pharmaceuticals offers significant investment opportunities.
I fully agree with the need to understand what you are investing in but in my experience this is an area worth the diligence required.
Does a US dollar have “inherent value”? What about a Zimbabwe dollar? A share of Ford? A share of Tesla? This takes us down a very murky path. Besides, the reason we trade is because we disagree on the value: I think a share of XYZ corp is worth more than $100 so I buy it from you, who thinks it’s worth less than $100.
That said, I don’t believe any cryptocurrency is a stable store of value (misses all three) and that prices are driven by Fear Of Missing Out and possibly the Greater Fool Theory.
As far as “only invest a little”, I considered and rejected it. My thinking is “how much does this have to go up to make a difference?” and if you only invest a little, the answer is a lot. So I am giving it a wide berth. Yes, my index funds are boring. But they have helped me reach my goals.
FYI when shorting a stock you have limitless downside unless properly hedged. When investing in a crypto your downside is limited to the investment. In addition commodities such as oil have theoretical “inherent” value but cost of delivery can be greater then cost basis (although rare).
There are plenty of reasons not to invest in crypto but looking for “inherent value” in an investment limits both the scope of opportunities and the hedging strategies that can be employed.
Who are investing? Mostly young adults who don’t really know or care about risks. Yes, there’re some rich old guys who are also investing, but they’re looking at it as a potential hedge, a hedge against devaluation of fiat currencies in the midst of an inflationary cycle, and they can afford to lose their bets.
Perhaps in crypto specifically but in blockchain tech it is the VC community and experienced investors.
Look up the major start up accelerators such as Tech Stars, Y cominator, mass challenge and you will find a significant number of ventures leveraging blockchain.
