A Silly approach to cryptocurrency investing???

[TinyTim]

Depends on your definition.

IMO (obviously, just to emphasize, it's my subjective opinion):

Investing - generates cashflow. Dividends, rent from real estate, interest. You might consider selling something if its value goes up, but generally speaking, it's not really your objective. You want consistent income from your investment.

Speculation - anything you buy hoping that its value will go up so you can eventually sell it. Flipping real estate, commodities, non-dividend stocks you plan to sell when the price goes up.

I never understood cryptocurrencies and a few times I tried, it was well beyond my understanding even when explained in the simplest terms. From my conventional investing perspective, it sounds like a fantastic way to lose money. I wouldn't even call it speculation, it's just pure gambling as a few people in the thread have already pointed out.

I was going by the dictionary definition. Buying in the hope of selling for a higher return in the future.

Now, many don't understand crytocurrencies (as you have said), so think it is nothing but the greater fool theory. To be fair, that is true for the majority of coins.

However, some crytocurrencies act as a form of gas for the network. Buy VET today, you won't be selling it to another 'investor' just hoping to make money, you'll be selling it to a fortune 500 company that needs it for their block chain transactions. Whether that's an auditing firm, assurance firm, car manufacturer, etc. It's quite a sophisticated formula, but you get the general idea.

 

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[Kak]

I wasn't speaking to you specifically just what I've seen with most. HODL.

I've already stated why it's a bad idea to just own cryptos if you are expecting a hyperinflation/doomsday situation.

I'm pretty sure you didn't read my posts. You're so hung up on this "crypto is bad" narrative to even read a balanced post.

"HODL" "HODL" "HODL" Yeah ok.

I literally said I dipped my foot in the water on Bitcoin. One crypto. Based on the assumption that OTHER messed up countries and increased accommodations worldwide would have the potential to drive the price up. That the only value it provides is utility and that I am bullish that the utility will increase for now.

Yes that is an assumption... But every investment has assumptions. I didn't take even close to a strong position on it.

I never said it was some amazing investment and to dump all of your money in it.

I never said the country is going to blow up. I said most of us wouldn't trust the government for 30 years.

I know you said it wasnt directed at me, but it sure seems like you're putting words in my mouth and arguing with them.

 

[Kak]

I dipped a foot in when the price was at about 3300.

Hey @lludwig I am still hodling!

 

[Tourmaline]

Bitcoin is the only legitimate crypto imo. All the others are pure gambling, and bitcoin has a huge risk involved too.

I have a couple hundred thousand Dogecoin. It's not an investment. lmao.

Huh apparently there is hope after all.... Brave New Coin

 

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[Kak]

pure gambling

All investing requires a level of assumption. A case could be made, with similar unidimensional logic that any investment is a gamble, including the dollar itself.

 

[Tourmaline]

Speculating on currencies that are highly used is not gambling in the way that speculating on <insert barely used cryptocurrency> is.

 

[gryfny]

I've speculated in the beginning. I lost quite a bit of course, but I've learned my lessons. Now I have 50% in some of the bigger coins and 50% invested in ICO's.

The biggest wins can be made if you get in early. Get to know people who know people who have an early allocation ( = lower buy in prices). I have no clue about what I'm investing in to be honest, but I'm close to someone who knows a lot! He knows what projects have potential and how to get in. Whenever I get a first batch (usually 10-30%) I can almost always sell that to cover my full initial investment, leaving the other 70-90% to be paid out at a later stage for profits. Some of the coins have dropped quite a bit in price since I've sold the first batch, but it doesn't really bother me since it's still 100% profit when I will eventually be able to sell the rest.

The first time I did this, the coin went x10 in a few weeks and I didn't sell anything. It ended up being a failed project and I've lost most of my initial investment. I should have sold just 10% to at least get my initial investment out, or more and take profits..

 

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[arcanemachine]

My worthless opinion:

The technology behind cryptocurrency is fascinating in that it actually works (it really is an ingenious technology), but is ineffective in the real world as it doesn't do anything that really matters any better than any existing monetary technology. (You want trustless economic exchange? Go to Somalia and let me know how that works out. Economies are built on trust.)

That being said, if there is an upcoming bubble (who knows) and if it behaves the same way as the last one (it won't), then buy sh*tcoins like Digibyte and whatever gets shilled hardest on /biz/ (e.g. RaiBlocks/Nano but before everyone buys in, or some other flash-in-the-pan crap like DeepBrain Chain) and dump them when the overall hype cycle peaks (as seen here), then hope you can cash out before the shady unregulated exchanges and/or ICOs penis off with your money. In short: Steal from those dumber and more unlucky than you.

Really though, the cryptocurrency market isn't an investment so much as it is a crooked casino with the facade of behaving like a real regulated market (one that uses all kinds of illegal-in-real-markets tactics to manipulate prices in whatever way they choose), complete with YouTube/Reddit/4chan circlejerking designed to get you to pump up the prices so the real early adopters can cash out. Currently the only value that cryptocurrency offers is hope: the hope that you can sell it for more than what you paid.

My earnest advice is to stay the hell out, put your money and effort into something that actually delivers value to other people, and to stay away from get-rich-quick schemes propped up only by lofty, but empty promises.

 

[Kid]

All investing requires a level of assumption. A case could be made, with similar unidimensional logic that any investment is a gamble, including the dollar itself.

The problem with investing/gambling and crypto is that investing is assumption that thing will go up in 'value'.
I.e. more people will buy it and it will bring more revenue.

Crypto is mostly speculative. There's no value and 'price' go up based only on some other people buying it at higher price.

You might argue that one day it will become currency (its not currency now - its commodity), will be used by many and become value.
But NOW it isn't. And trend is reverse of that.

Its like issuing stocks without having any company, sales or anything that have value and seeing how much people will buy this stock for.