gzsg

Take 10 minutes to listen to Microstrategy’s CEO Michael Saylor on YouTube.

I’m sure there were a great deal of horse owners who said the automobile would never succeed.

Or more recently, electric cars.

You can read and grow rich or .......

Trip7

The issue isn't the great deal of horse owners who thought the automobile would never succeed. It's the great deal of over enthusiastic(or dare I say it, irrational exuberance) investors who suffered a total loss of capital investing in promising auto companies that went bankrupt.

https://en.m.wikipedia.org/wiki/List..._United_States

This quote from "Random Walk Down Wallstreet" describes Bitcoin, SPACs and today's market in general to a T:


Robert Shiller, in his book Irrational Exuberance, describes bubbles in terms of “positive feedback loops.” A bubble starts when any group of stocks, in this case those associated with the excitement of the Internet, begin to rise. The updraft encourages more people to buy the stocks, which causes more TV and print coverage, which causes even more people to buy, which creates big profits for early Internet stockholders. The successful investors tell you at cocktail parties how easy it is to get rich, which causes the stocks to rise further, which pulls in larger and larger groups of investors. But the whole mechanism is a kind of Ponzi scheme where more and more credulous investors must be found to buy the stock from the earlier investors. Eventually, one runs out of greater fools.


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Keroburner410

There is nothing wrong with pulling profits in this market, it feels euphoric during a massive melt up and watching money grow and blossom.

On the other side it feels terrible watching while it withers and dies.

As long as your chips are still on the table your still in the game, when you cash your chips in and are out of the game only at that point you are able to gauge how well you did or did not do.

I personally love the markets they provide multitudes of opportunity, being burned along the way a few times the positives have always outweighed the negatives and lessons were learned.

TransWorld

Talking about my great grandfather. He was a salesman in rural Missouri. Early 1900s he paid good money to pick up the buggy whip account. This thing of Henry Ford was a passing fad, he was convinced.

He was not a very good salesman. Fortunately, his wife was a good cook at the county seat hotel and earned a decent living for them and their 6 kids.

Nantonaku

It sounds like you have been listening to Peter Schiff?

gloopy

But when you "cash in your chips" into a monopoly money fiat "asset" that withers by double digits per year (the true total inflation/devaluation by any rational measure) then you lock in your profits only to be guaranteed to lose them over time.

Bitcoin is of course a speculation not unlike a "penny stock pop" for some, for now. Put beans on the table, take more beans off, celebrate the gains. But there's also a lot of smart money and "strong hands" making much longer plays than that and for completely different reasons.

The case can always be made for the LOL (little old lady) method where you "take profits" once you can recoup your initial investment (plus CG taxes in most cases) and let the rest ride on "house money". However by doing that you guarantee you miss out on future upside while locking in the initial outlay so there's pros and cons.

The ultimate speculative bubble that's destined to pop is the fiat money printing machine that services today's already unpayable debt by printing even more future debt.

And yet some still like to call an extremely hard money fixed asset class the "ponzi scheme" simly because of the volatility band as it makes higher highs and higher lows

JamesBond

You are gonna have to help me out with this one...

panpanpan

Elon musk acknowledges that bitcoin is “almost as BS as fiat currency.” It’s not a commodity and has no real value. The whole thing depends merely on someone else willing to pay a higher price.

With a falling dollar and inflation it is a lot less risky to invest in real estate, metals, good stocks, etc. (items with real intrinsic value).

BCan

* “ALMOST”

Bitcoin isn’t controlled by any central authority, convertible to almost any currency, finite supply with rapid increasing demand (to include institutional).

would I put my kids college fund into BTC - No.
would I dismiss it as central banks print grotesque amounts of fiat money - No

Gunfighter

I like the above sentiments. "Almost as BS", Invest in real assets...

Keeping the majority of your net worth in real assets and putting a few months of expenses in gold, silver or bitcoin is reasonable. Cryptocurrency is a store of value similar to precious metals. It isn't an income producing asset like a business (or share of one), real estate or bonds. IMHO, the recent rise in BTC has been due to the greater fool theory and leverage, not an increase of intrinsic value.