Bitcoin

[fmyth]

I know I keep being thw Debbie downer here. But if its one of the least risky bets out there. Why "only put in what your willing to lose". I am asking sincerely. I have never heard that about something like the S and P 500

With the SP500 you are spreading your risk across the 500 largest publicly traded companies in the US.
Since its expansion to 500 stocks in 1957, the average annual return has been around 10–12%.
Bitcoin's average annual return is 230%. Volatility is the price you pay for the 20X returns. Not many people can watch their entire portfolio tank 80% without selling and locking in their losses. It takes a strong will to hold during these huge downturns like we are in now. I have 50% of my portfolio in BTC/BTC ETF's and BTC proxies like MSTR. I've been through several big downturns in the past and I continue to HOLD and add to my positions during these times. Why? Because I have conviction that BTC will continue to outperform every other possible investment over my time horizon.

 

[fmyth]

I know I keep being the Debbie downer here. But if its one of the least risky bets out there. Why "only put in what your willing to lose". I am asking sincerely. I have never heard that about something like the S and P 500

BTC is NOT "one of the least risky bets out there". I'm down over 1M as of this morning. Not many small investors can stomach that kind of volatility. I'd explain my BTC experience like this: One day I'm online shopping for an airplane, the next day I'm considering applying for a job at McDonalds. If you can't handle that roller coaster ride you should limit your exposure to a small percentage of your portfolio. I'm an entreprenuer, a dreamer, and I'm willing to accept the risk.

 

[JayRoot]

I know I keep being the Debbie downer here. But if its one of the least risky bets out there. Why "only put in what your willing to lose". I am asking sincerely. I have never heard that about something like the S and P 500

2020/22 I was down 20% in my index fond IRA. Took 3 yrs to get it back. It all has risk. Just have to decide how much you want to take.

 

[Poser]

If I were wanting to buy XRP - better to buy outright or through an ETF (ie: Canary)??

Also, FYI: Grayscale just got their XRP etf approved.

 

[2531usmc]

BTC is NOT "one of the least risky bets out there". I'm down over 1M as of this morning. Not many small investors can stomach that kind of volatility. I'd explain my BTC experience like this: One day I'm online shopping for an airplane, the next day I'm considering applying for a job at McDonalds. If you can't handle that roller coaster ride you should limit your exposure to a small percentage of your portfolio. I'm an entreprenuer, a dreamer, and I'm willing to accept the risk.

I’m not sure if BTC is a store of value or a highly leveraged betting tool. Maybe a little of both

 

[KsRancher]

I have always heard the saying "never invest in something you dont understand". I never really knew why that mattered until now. When you invest in something you dont understand (me with BTC) you will really struggle with things like BTC in this sell-off. All I seen was "positive" news. And its tanked 36%. I am invested in other stocks that have a bullish earnings report and its down 2%. Makes you scratch your head, but its not dropping 35% and give you the feeling the sky is falling.


And I understand it even less now because I heard it was a hedge against inflation and a storage of wealth. Neither of those are what BTC is. I will say this though. I am holding onto it, not selling it. I am trying to understand what BTC is and how its value works so I can understand what I am invested in. That 5yr chart posted above ia the sole reason I am invested in it.

 

[MountainTracker]

I get that, economic activity/stimulus.....but that's different than credit liquidity isn't it?

I think we might be saying the same thing.

The gov needs to have liquidity in the financial system to ensure stability, while paying their own obligations. This helps the overall market by having more $ available for lending. All this is created in forms of bonds, t bills, taking on more debit. Until the gov can agree on whatever the amount is, the system eats itself, fear builds, people withdraw funds.

I personally know a couple of people who had to barrow against their retirement bc of the shutdown. That money was pulled from the system. Most gov employees just received back pay last Wednesday.


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