Bitcoin

[BuckSmasher]

Those emotions are shared by most folks on ANY volatile asset/stock/product.

Dumb retail money sitting on the side lines is relieved they didn’t buy when the price dumps. Then they regret not buying during the next run up.

Rinse/repeat.


Sent from my iPhone using Tapatalk

Yeah. My stomach doesn't like volatility like that. If I had bought in 2015 when the crazy hvac repairman was telling me to.... he is probably retired now lol.

 

[BuckSmasher]

Crapping bricks? I'm only up 54%....

In what time frame?

 

[Poser]

In what time frame?

I started DCAing in 2020. Took advantage of the "crypto winter" in 2022. Bought ETFs in the mid to high $40,000s in 2024.

 

[fmyth]

I have FOMO on the whole bitcoin thing but if I was holding it right now I would be crapping bricks. I always look and WISH i had bought it 5 years ago but don't want it now... frustrating.

I'm up over 100% on my BTC and am buying more on this dip. "Fortune favors the bold".

 

[Mighty Mouse]

Should We Compare Bitcoin to Gold? Lessons From the Last Financial Crisis

Wharton’s Rahul Kapoor and Lehigh University’s Natalya Vinokurova explain the risks of comparing Bitcoin to gold.

knowledge.wharton.upenn.edu

Wharton School of Business came out with this article back in March. They are comparing BTC to gold as a store of value.

Their bottom line:
“The striking parallels between Bitcoin and MBS suggest that history may be repeating itself. In fact, the negative consequences of the analogy of Bitcoin to gold might be even more severe than the analogy of MBS to bonds. While most MBS at the end of the day were backed by real assets — mortgages on real houses — Bitcoin is not backed by any real assets.

If you are not in the business of speculation, steering clear of investing in Bitcoin — or for that matter any cryptocurrency — may be the best way to avoid the fallout from another misguided analogy.”

The similarities between bitcoin and mortgage-backed securities are superficial. Misguided investment in MBS created a bubble that burst…current Bitcoin investment appears (to some observers) to be misguided, possibly creating a bubble destined to burst. They are, however, fundamentally different, and attempting to equate them any further is a stretch IMO.

“Let’s think about where the great financial crisis of 2008 came from. Investors accepted the analogy of mortgage-backed securities (MBS) to bonds.”

The root cause of the 2008 financial crisis was the Fed’s loose money policy. The push for increased home ownership helped channel the loose money into MBS, but MBS themselves were not the root cause of the ensuing financial crisis.

“Analogies are powerful mechanisms to help people and organizations make sense of a new idea or innovation. However, they almost always carry the risk of masking features that could be fundamentally important in the role that the innovation plays with respect to its intended use”

Indeed, so how about you (the authors of the article) stop attempting to fabricate a flimsy analogy between bitcoin and MBS?

“Unlike Bitcoin, gold has physical properties as a precious metal that are attractive for many applications, including jewelry, electronics, and medicine.”

Bitcoin has digital properties as a transaction network and system of record that make it attractive for facilitating international commerce.

“While gold has a history of holding its value in times of societal cataclysms such as wars, it is not clear that Bitcoin could survive a major power grid failure.”

It’s also unclear how a major power grid failure could destroy Bitcoin. The Bitcoin network is widely distributed across the globe. If a global power failure were to occur, neither gold nor bitcoin would be anyone’s immediate concern.

“It has been estimated that a large majority of Bitcoins are owned by individual investors who own a small fraction of a single Bitcoin. This fragmentation and lack of transparency of ownership of a speculative asset presents systemic risk.”

The logic presented here is backward. Fragmented ownership reduces systemic risk by enlarging and diversifying the “system”; concentrated ownership would increase systemic risk.

“While most MBS at the end of the day were backed by real assets — mortgages on real houses — Bitcoin is not backed by any real assets.”

Bitcoin is the real asset. The fact that bitcoin is intangible does not preclude its ability to be a valuable asset.

 

[MountainTracker]

I started DCAing in 2020. Took advantage of the "crypto winter" in 2022. Bought ETFs in the mid to high $40,000s in 2024.

Yeah timeframe makes all the difference. If only owning for one year then the swings will make you sea sick, but at three years your odds of being under water is almost zero and at four it’s basically zero. So the more time in the lower the risk.

https://twitter.com/x/status/2000060380194722191

Sent from my iPhone using Tapatalk

 

[pacoalcracker]

no matter how you slice it, it still has zero underlying value. ZERO. utilitarian use is just about zero as well. this isn't a crypto winter, it's a large scale realization crypto just might turn out to be the largest scam ever.

 

[2531usmc]

no matter how you slice it, it still has zero underlying value. ZERO. utilitarian use is just about zero as well. this isn't a crypto winter, it's a large scale realization crypto just might turn out to be the largest scam ever.

look at the reporting on the BTC market gyrations. The normal wording includes “crypto traders” and “leveraged longs/shorts”

BTC is evolving into a trading vehicle for the hedge funds

 

[Poser]

no matter how you slice it, it still has zero underlying value. ZERO. utilitarian use is just about zero as well. this isn't a crypto winter, it's a large scale realization crypto just might turn out to be the largest scam ever.

It’s funny how 'zero utility' somehow powers a multi-billion dollar global network that stays open 24/7, while my traditional bank still needs three business days and a signed note from my 3rd-grade teacher just to process a wire transfer. Then of course, there’s the fact that the likes of Fidelity, Blackrock, Grayscale and multiple sovereign nations are either in on the scam, or had the wool pulled over their eyes because they lacked the fiscal insights of one pacoalpacker.