Hope that was an attempt at humor and not logic?OK, from now on never close a losing trade and you will have no losses anymore...
If you bought Bitcoin on Friday, you have lost almost 28%
- Thread starter Pekelo
- Start date
For some it is a joke, for others a reality...Hope that was an attempt at humor and not logic?
I wonder how the majority on ET would see it.
Oh man, another one these discussions.
Can you clarify further? Maybe it's not what you think.
options can be pretty volatile. I wouldn't say people are fools for trading them
...specially because it isn't really limited. There is nothing what BTC does better than LTC couldn't do. And if LTC is not good enough, there is another one and another crypto. So the word limited can not really be used in an almost free to generate, free to copy crypto.
In short, there is nothing unique about BTC...
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You can make a similar argument about many things that we value by consensus. Something being limited does not make it valuable by definition. It's the perception of value in your counterparty. The moment that perception changes, these things lose value. Humans are very good at coming up with rational explanations to this perception of value, but in reality it's a consensus.
What is so special about gold or silver? What makes diamonds so desirable to ladies? Don't say scarcity, because scarcity is only important based on perception of value. E.g. my worn socks are scarce, but I don't see people rummaging through my dumpster in search of these ripe artifacts.
Bitcoin is an accepted medium of exchange among a group of people (at least in the shadow economy). Another crypto-currency is not. To force migration from bitcoin to anything else, someone has to force it (like many years ago governments forced people to abandon gold as currency). Since bitcoin exists in the world of anarchy, it's unlikely.
Well, that's the issue - every conversation here, on ET, is emotionally driven. Everyone here wants to be right which makes zero sense to me. As traders/investors, we should not be aiming to be right, but instead should be aiming to be rich. To get there, we should think rationally and calmly.
I agree with almost anything what Sle said above. Except with the emotionally driven part. There is nothing emotional in my arguments and his post above was also pretty objective and logical. The emotional part usually comes from fanboys. The reason why I didn't invest in bitcoin years ago was because for a smaller amount I didn't bother for the trouble and for bigger amount I thought it was too risky. That simple.
Diamond is a very good example of an overvalued asset, it is not rare and now with synthetic diamonds it can be fairly easily replaced anyway. It just got really good PR in the 40s and people bought into the BS. Mind you, the BS can be adjusted, for decades brownish diamonds were faulty and undesirable, now they are rebranded as chocolate diamond.
But as I said BTC is very similar. It isn't rare, easily replacable and fanboys buying into the BS.
There are 2 intrinsic values for BTC (but again, not unique among cryptos) that makes it practical for certain people: payment for illegal activities and avoidance of capital controls by governments. As long as these characteristics can be used BTC (and other cryptos) will have values, the question is just how much. And nobody will agree on that, thus the market exists.
"It is perfectly OK to buy into a Ponzi/bubble, as long as you know that it is a Ponzi/bubble." --- Benjamin Franklin
"Ladies and gentlemen please take your seats, the music will stop for a moment." --- Ludwig van Beethoven
Diamond is a very good example of an overvalued asset, it is not rare and now with synthetic diamonds it can be fairly easily replaced anyway. It just got really good PR in the 40s and people bought into the BS. Mind you, the BS can be adjusted, for decades brownish diamonds were faulty and undesirable, now they are rebranded as chocolate diamond.
But as I said BTC is very similar. It isn't rare, easily replacable and fanboys buying into the BS.
There are 2 intrinsic values for BTC (but again, not unique among cryptos) that makes it practical for certain people: payment for illegal activities and avoidance of capital controls by governments. As long as these characteristics can be used BTC (and other cryptos) will have values, the question is just how much. And nobody will agree on that, thus the market exists.
"It is perfectly OK to buy into a Ponzi/bubble, as long as you know that it is a Ponzi/bubble." --- Benjamin Franklin
"Ladies and gentlemen please take your seats, the music will stop for a moment." --- Ludwig van Beethoven
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