That's great for you and it works for you But it doesn't necessarily work for everyone... I hope our convo here has shown you that hodling through the ups and downs works for me If Pekelo invested $2,000 then, he'd have lost a lot in that year as much as 75% and not recover to breakeven for a while, but today that $2,000 is worth $3.8 Million. You're good with Math Imagine the net worth of Jeff Bezos when Amazon lost 90% 20-23 years ago. Imagine Bezos net worth as Amazon lost 50% several times even as recently as in the past 5 years. He never sold Winklevoss never sold a single Bitcoin, either. Imagine their net worth as Bitcoin fluctuated wildly 85-90% down from peak to trough And lastly, imagine me with my credit card debts and measly ~$7K invested into Bitcoin many years ago and being able to achieve 7 figures, but I had to experience some painful pullbacks that lasted years. Bitcoin is not a get-rich-quick investment I hope we're both still around and posting on ET when Bitcoin hits $500K. We'll have this conversation again in a few years
Me too! It's nice to know it's going to 500K. That means I don't have to rush in. I can wait until it starts making new highs. In the mean time I can look for other opportunities. As for those who held thru thick and thin and are doing really well, I'm not comfortable with the roller coaster ride. I'm sure there are examples of buy and hold investors who lost everything, or close too it, with that strategy. Perfectly good companies that became almost worthless. I can give you a couple examples from Canada that traded in the US. Nortel and Research in motion. Cutting edge teck for a moment or two. Both had the talking heads giving buy recommendations all the way down. I gotta believe price direction. That pretty well tells me what investors are thinking.
[singing to the tune of Blake Shelton's song Some beach]: Some hedge Somewhere My crypto wallet is empty but I don't care Profits not growing and ponzis are blowing I dreamt about this, you said Some hedge Never
Yeah, kind of embarrassing too. But someone explained, i think it was Michael Saylor, that the stock market is, or has been a hedge against inflation. It has always gone up, because the dollar has always gone down. So if BTC is a hedge against inflation, it too might be thrown in with the big money that is using the stock market as a store of value. But within the stock market, some do outperform others. Evidence suggests BTC is outperforming all stocks for a while now and could easily pull in more capital as it's reputation increases each year with the one or two things it does best: store value, and make the value relatively easy, and reliable, and cheap, to move...in a relatively open source environment...not easily changed by a small board of directors, or a single CEO. It's strange that the USD would be seen as a better store of value, at this economic moment, than either the stock market, or BTC, especially when BTC only stores value, and does not depend on supply chains and employees to make quarterly profits. The mainstream is still digesting what BTC even is. But at least it is starting to be digested.
It is annoying to the writer Sammehhh because he lost $$$ investing in Bitcoin. BTC and the stock market have been known to be intercorrelated. Yet the writer still refuses to accept the fact. If he was making money, he'd have said " It is great to see bitcoin follow the stock market "
I doubt anyone actually believes BTC is a store of value. Bitcoin is not up because it is a store of value it is up because it is a "risk on" trade and benefits from excess liquidity provided by the deflationistas aka the Fed. BTC is the first to fall and the first to rise when conditions warrant like at the bottom in 2020 and the top in 2021. Its obvious most days BTC is just 2-3X of the QQQ.
Show me a risk-off store of value and i could probably show you the monopoly on violence that masks the real risk.
But the claim improved to being a hedge against the market. And it is not. That is what I am trying to teach you guys. Those days are over. Since institutional money moved in.