Quote:
Originally Posted by WCGRider
Some various points here
1) I bought BTC for the first time in 2013. So I've been lucky to make a good portion of money from crypto. I did not just buy and hold however, I sold as price increased to keep my portfolio diversified amongst asset classes (What can I say I guess im a nit)
2) Cryptocurrency has value because people say it does. Personally I think its better than Fiat for a variety of reasons including
- Deflationary (at least some are, including Bitcoin)
- Increased liquidity by being completely digital
- Ruled by algorithims instead of people
- Popular with younger generations who understand the idea of digital money.
However, it is also extremely speculative and volatile.
It is not a ponzi scheme, because the buying of bitcoin is not based around fraudulent information or guarantees.
In general I think people freak out too much about what is happening right now, and everyone has their own greater view on the subject. But at the end of the day, it is a brand new asset class with a lot of upside. There is some chance we will see a far greater adoption than we see today (that chance is debatable), and in those scenarios the value of your portfolio will increase tremendously.
I do not see a good counter argument to having at least 5-10% of your net worth in cryptocurrency.
I don't think it's unreasonable to think any particular coin is undervalued, but to say that you can't see a good counter to having 5-10% of your net worth in crypto is pretty lol. You'd be saying that if it was trading at 50k.
I don't doubt you can analyze what's going on in the world and make good bets wrt it's impact on the industry or analyze the tech wrt specific coins and anticipate where people will be throwing their money, but let's be real - every analysis of price fundamentals is the equivalent of a fat delusional white collar professional on a heater flapping his jowls about his long term winrate.
Even if crypto userbase triples and for some reason no new coins are developed that function as an alternative the rational price might still be a small fraction of what they trade at.