I really want to understand how come people think crypto as an investment option? Regular Stock have tangible assets and an enterprise that strives to make profit and there’s some relation to the price based on which a knowledgeable investor can base their decisions to buy or sell! Something like too high PE and no future possibility of profits based on data(atleast probabilistic) then sell! Else buy if it is other way around! Crypto just have none of that. Investing in crypto is like purchasing a cheque/fiat currency note in hope that it would be gaining more value than it’s current value(wait, who gave that current value? Oops we just assigned it randomly)! For regular fiat currency, governments through central banks provide a guarantee that this particular fiat currency will be of value. Crypto got nothing of that sort. I don’t have anything against block chain tech or even cryptocurrency as medium of exchange. What I don’t get is that how is it a reasonable investment option? I see quite a similarity of this crypto investing boom to the tulip mania! I really want to understand if Im missing something! #crypto #cryptocurrency #finance #investing #stockmarket TC : 220K CAD
It's an investment in the Greater Fool Theory.
There are many financial instruments sold in OTC market that are investable. Cryptos are investable too.
Are you saying that crypto is a security then?
What is the definition of security? If a private company's equity is security, crypto is security in some sense.
If you call going to casino is an investment, then yes
I used to believe in crypto as I thought it was an alternative currency, then the shills started saying about how to hold crypto till it goes to the moon... How can crypto be used as an currency if everyone is holding it? I then dumped it all
Yes, this!
It's an investment. Whether it's a good or a bad investment is subject to debate.
Hence my question further clarifies later whether it is a reasonable investment. And I’m curious about people who think it is a reasonable investment!
Some people got 1,000x returns, some people lost it all. There is no simple answer to that question.
"Cryptocurrency" is a virtual commodity with zero residual value. It is an investment if you understand the risks of investing in commodities.
Commodities typically have utility
Crypto must be a reasonable investment because of its potentially high returns and the fact that it can also be chosen as a hedge against inflation and is global in nature. But it's not recommended to have it in more than 10% of your portfolio . For a long time, I have been holding a total of about 300k worth of BTC and ETH, with a portion of the funds being used to trade contracts in the cryptocurrency market, which has been lucrative for me.
Lol it is absolutely NOT an investment