Bitcoin AA - Just out of Curiousity

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Posts: 72
Joined: Sat Dec 29, 2012 12:16 pm

Re: Bitcoin AA - Just out of Curiousity

Post by GuyFromGeorgia » Thu Sep 21, 2017 1:01 pm

30sep16 wrote:
Thu Sep 21, 2017 12:43 pm
The upside for stocks is around 5% a year (Vanguard just warned about this) and the downside over those 5 years is probably 50%. The upside to Bitcoin is >1,000% and the downside is 100%. The asymmetry of that math is what this is about.
I agree with you on your next 5 years. But look out 15 or 20 years, and look out in the event that Bitcoin crashes. Seriously, if it goes up 1000% then you can retire and you win the game. If it goes to 0, where are you? The stock market had a crashed and has since rebounded. You have money that is valued less than it is today. You missed out on 6-8% annual compounded growth on what you left in cash. That's the point you're missing. And your idea of getting in after the crash happens, maybe you'll do that also make make even more money. Maybe Bitcoin and the stock market truly have 0 correlation and just as it spikes you can take some gains and buy a ton of shares. More than likely, however, you'll make all the wrong decisions because you don't have a plan to stick to. Just like Dot Com millionaires you'll get a ton of paper money and then watch it evaporate.

I'm done with this thread...

User avatar
Posts: 4800
Joined: Fri May 20, 2011 2:50 pm

Re: Bitcoin AA - Just out of Curiousity

Post by prudent » Thu Sep 21, 2017 1:03 pm

Topic is locked (thread derailed).