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Bought Bitcoin and can't stop !!!

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  • Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6323
    Joined: 01/12/2016

    Who said anything about investing?  It’s a wager.  It has huge upside gains for a relatively small bet. It’s certainly not going anywhere, been 10 yrs now, and only gaining traction.

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    Sure, but if you make a small bet, your upside is also relatively small. Say you take $50k and wager it. Say it goes back up to $20k/bitcoin (now it’s about $8k/bitcoin). Congrats, you’ve made $75k pre-tax.

     

    That doesn’t buy you the private island. I’ll take the money, don’t get me wrong, but it doesn’t drastically change my life. If you want a little play money, that’s fine, but the upside is not huge unless you bet huge.

    There is a small <5% chance that bitcoin will be digital gold.  If you believe some of the arguments on the internet (written by some really smart people who know it’s a long shot), then we’re talking >100k a coin or much more.

    Remember there’s only a finite supply.  It’s estimated only about 1 mil coins are in circulation and others are held long term by relatively few people or lost.   This equilibrium may also take many years, but there has been some progress like institutional dollars flowing in and a lot of interest in creation of ETFs,  gray scale bitcoin trust, and many millennials preferring it over gold.  Agree though that it’s more likely to go no where but worth a wager in my opinion given the potential.

     

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    I think the supply of digital coins is potentially unlimited.

    Hence I think the long term expected return will be very low.

    I would rather buy a lotto ticket.

     

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    How about gold?  An intrinsically worthless metal with few practical applications.  More keeps getting uncovered.  There is an abundant supply of metals, but people assign more value to gold over others.  Somehow people have been valuing gold for centuries?   The bubble of gold never burst.

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    2011

    #216986 Reply
    Liked by wonka31
    wonka31 wonka31 
    Participant
    Status: Physician
    Posts: 712
    Joined: 03/24/2018

    I think you like bitcoin and if you feel confident you should buy it. I have a friend who does VC for a living and love talking to him about it. I once asked him how he knows what to invest in and he told me ‘If I like it, I buy it’. I appreciate this attitude. Bitcoin isn’t for me, but it doesn’t mean it’s not for you. You’ve already talked yourself into it, so go for it. It likely won’t lead to a catastrophic loss or a meteoric rise, so it’s not a huge deal one way or the other.

    #216990 Reply
    Liked by Tangler
    Avatar Dusn 
    Participant
    Status: Physician
    Posts: 198
    Joined: 01/02/2018

    Who said anything about investing?  It’s a wager.  It has huge upside gains for a relatively small bet. It’s certainly not going anywhere, been 10 yrs now, and only gaining traction.

    Click to expand…

    Sure, but if you make a small bet, your upside is also relatively small. Say you take $50k and wager it. Say it goes back up to $20k/bitcoin (now it’s about $8k/bitcoin). Congrats, you’ve made $75k pre-tax.

     

    That doesn’t buy you the private island. I’ll take the money, don’t get me wrong, but it doesn’t drastically change my life. If you want a little play money, that’s fine, but the upside is not huge unless you bet huge.

    There is a small <5% chance that bitcoin will be digital gold.  If you believe some of the arguments on the internet (written by some really smart people who know it’s a long shot), then we’re talking >100k a coin or much more.

    Remember there’s only a finite supply.  It’s estimated only about 1 mil coins are in circulation and others are held long term by relatively few people or lost.   This equilibrium may also take many years, but there has been some progress like institutional dollars flowing in and a lot of interest in creation of ETFs,  gray scale bitcoin trust, and many millennials preferring it over gold.  Agree though that it’s more likely to go no where but worth a wager in my opinion given the potential.

     

    Click to expand…

    I think the supply of digital coins is potentially unlimited.

    Hence I think the long term expected return will be very low.

    I would rather buy a lotto ticket.

     

    Click to expand…

    How about gold?  An intrinsically worthless metal with few practical applications.  More keeps getting uncovered.  There is an abundant supply of metals, but people assign more value to gold over others.  Somehow people have been valuing gold for centuries?   The bubble of gold never burst.

    Click to expand…

    Yeah, but gold is shiny and sparkly.  Nations have been invaded and cultures have been destroyed; millions have been tortured and killed in the hopes of getting it.  I just don’t think Bitcoin is shiny enough to have the same effect.

    #217078 Reply
    Avatar Raddoc123 
    Participant
    Status: Physician
    Posts: 109
    Joined: 07/03/2016

    Internet has a short history.  It’s internet shiny 😀

    Bitcoin as well as gold make no sense assuming all investors were rationale and boglehead like.  But most investors aren’t.

    Bitcoin as well as gold have no intrinsic value.  They don’t pay out interest or dividends.  People attribute value to things which make no sense and will for generations to come.  That said, I am a 3 fund dry boring investor with 99.9% of my money.  I would not be surprised if bitcoin is a grand slam or a turd.

    But I do not think it’s going anywhere.  Congressman Sherman recently introduced a bill to ban bitcoin and cryptos because he is concerned that it poses a threat to US international financial power.

    One day we’ll have the vanguard total crypto fund.  First to predict it here.  Laugh all you want.

    #217081 Reply
    Avatar Tangler 
    Participant
    Status: Physician
    Posts: 371
    Joined: 08/23/2018

    Internet has a short history.  It’s internet shiny 😀

    Bitcoin as well as gold make no sense assuming all investors were rationale and boglehead like.  But most investors aren’t.

    Bitcoin as well as gold have no intrinsic value.  They don’t pay out interest or dividends.  People attribute value to things which make no sense and will for generations to come.  That said, I am a 3 fund dry boring investor with 99.9% of my money.  I would not be surprised if bitcoin is a grand slam or a turd.

    But I do not think it’s going anywhere.  Congressman Sherman recently introduced a bill to ban bitcoin and cryptos because he is concerned that it poses a threat to US international financial power.

    One day we’ll have the vanguard total crypto fund.  First to predict it here.  Laugh all you want.

    Click to expand…

    A Turd for sure. Just kidding. How would anyone know?  Who the heck understands this crap anyway? Blockchain digital mining? Specialized computers that mine (crypto mining ) blockchains which are then added to the blockchain digital ledger? Huh? Ahhhh…….. nope, no thanks.

    #217094 Reply
    Avatar Tangler 
    Participant
    Status: Physician
    Posts: 371
    Joined: 08/23/2018

    I think people are buying this because people are buying this. I really doubt the average investor understands it, thus classic bubble behavior.

    #217099 Reply
    Liked by Zaphod
    Avatar Dont_know_mind 
    Participant
    Status: Physician
    Posts: 979
    Joined: 11/21/2017

    Internet has a short history.  It’s internet shiny

    Bitcoin as well as gold make no sense assuming all investors were rationale and boglehead like.  But most investors aren’t.

    Bitcoin as well as gold have no intrinsic value.  They don’t pay out interest or dividends.  People attribute value to things which make no sense and will for generations to come.  That said, I am a 3 fund dry boring investor with 99.9% of my money.  I would not be surprised if bitcoin is a grand slam or a turd.

    But I do not think it’s going anywhere.  Congressman Sherman recently introduced a bill to ban bitcoin and cryptos because he is concerned that it poses a threat to US international financial power.

    One day we’ll have the vanguard total crypto fund.  First to predict it here.  Laugh all you want.

    Click to expand…

    Yeah, well it starts as 0.1% of their portfolio and they average down until it becomes 30% or something crazy.

    I think Bitcoin was obviously a bubble. Maybe I am wrong and it comes back, but I think there is a good chance it doesn’t. In the past there weren’t all these other coins issuing. So I think Bitcoin could well go to something very low and hopefully you don’t keep buying all the way back to zero or 10 or whatever, if it does do that

    #217176 Reply
    Liked by Tangler
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 2113
    Joined: 02/11/2019

    Was there gold hidden in the village? Silver, gems? Where was Lord Beric Dondarrion?

    I do not remember the Tickler asking about where the Bitcoin was hidden.

    “Never let your sense of morals prevent you from doing what is right.”

    #217185 Reply
    Liked by nfldoc, Tangler
    Avatar burritos 
    Participant
    Status: Physician
    Posts: 526
    Joined: 04/23/2018

    https://finance.yahoo.com/news/bitcoin-breaks-10-000-apos-212100191.html

    11k per coin now. Chaching! No I don’t have any.

    #224870 Reply
    Liked by Zaphod
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4595
    Joined: 05/13/2011
    Earnest refinancing bonus

    https://finance.yahoo.com/news/bitcoin-breaks-10-000-apos-212100191.html

    11k per coin now. Chaching! No I don’t have any.

    Click to expand…

    Pretty wild ride isn’t it. What’s that almost 3X in 10 weeks or so?

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #224892 Reply
    Avatar Doc Spouse 
    Moderator
    Status: Small Business Owner, Spouse
    Posts: 231
    Joined: 10/20/2017

    https://finance.yahoo.com/news/bitcoin-breaks-10-000-apos-212100191.html

    11k per coin now. Chaching! No I don’t have any.

    Click to expand…

    Pretty wild ride isn’t it. What’s that almost 3X in 10 weeks or so?

    Click to expand…

    Almost.  I’ve been chortling over my magical internet points, but the lambos will truly rain down if the alt coins take off.  That’s where you see those 10-100x multiples.

    edit: replaced “when” with “if” because… you know.. crypto.

    #225246 Reply
    Liked by Zaphod
    wonka31 wonka31 
    Participant
    Status: Physician
    Posts: 712
    Joined: 03/24/2018

    Can anyone direct me to a 529 that allows you to invest in bitcoin? It’d be nice not to make those monthly payments anymore and I like this meteoric rise. All up from here.

    K, thanks in advance!!!

    #225271 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6323
    Joined: 01/12/2016

    Is there a trusted or place that you can actually trust to invest with? This has been by far the biggest hurdle for me, besides not wanting to watch my money burn.

    #225331 Reply
    Liked by G
    ACN ACN 
    Moderator
    Status: Physician
    Posts: 666
    Joined: 01/08/2016

    I use coinbase

    If you're ever having a bad day, just remember in 1976 Ronald Wayne sold his 10% stake in Apple for $2,300.

    #225344 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4595
    Joined: 05/13/2011

    I use coinbase

    Click to expand…

    Weren’t they the ones who got hacked?

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #225345 Reply
    Liked by Zaphod

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