The no yields assertion is actually not accurate for stakeable crypto assets -- one can earn yield.mbasherp wrote: ↑Wed May 19, 2021 10:57 amAlex, once again thank you for what you do. I’ll just point out humbly, once again, that your statement is not correct. Another user already iterated this well before me in the case of Aave. It is not the only one. Not all crypto is Dogecoin or Bitcoin - many of these do indeed confer ownership, governance rights, and offer yields.Alex Frakt wrote: ↑Wed May 19, 2021 10:21 amNo it doesn't. Stock were certainly much riskier prior to the regulatory reforms of the 1930s. But, unlike today, buyers generally demanded compensation for taking on these risks in the form of dividend yields much greater than bond yields. In fact, many market observers used dividend yields as a bubble predictor, getting out or shorting equity markets when yields dropped below certain benchmarks, either absolute or relative to bond yields.mbasherp wrote: ↑Wed May 19, 2021 9:24 am I very humbly want to add a bit of perspective. A community like Bogleheads could not and would not have existed prior to "Common Stocks as Long Term Investments" - published in 1924. Bonds were the way, and stocks were risky - even surely similar to tulips to some. But as the world evolved, an understanding of what stocks "really" were changed as well. A few decades later we had modern portfolio theory and you'd be questioned if you didn't include common stocks in a portfolio.
It is not impossible that all of the issues mentioned with crypto are transitory growing pains on the way to a truly fundamental change in the financial world. Looking deeply at the DeFi space in particular, it looks a lot like the stock market was a century ago, before it was "safe."
And of course stock ownership gives you rights, albeit attenuated for minor shareholders, in the governance of the company as well as a claim on any assets from the sale or liquidation of the underlying company.
None of this applies to crypto investing. They have no yields and ownership gives you no rights.
I am not some manic crypto bull - but I feel it is vitally important to learn about what is emerging, to identify misinformation, and make informed choices. Bogleheads has always been the best place I’ve found for that. So thanks again. It just appears that this might be a blind spot for some of us.
I'm not asking for a reversal of forum policy, but there is a lot of misunderstanding of the differences amongst various types of crypto assets.
It's not all Bitcoin as store of value or dog money meme coins.