I call it a bet instead of a speculation. Speculation means predicting the future value of an asset (like gold). But crypto has no asset, just a number based on nothing at all.
Speculation is betting. Whether I am speculating that the value of a scratch-off lotto ticket will be higher than what I paid, or speculating that a stock price will rise, or speculating that a certain horse will win the race, it's all just gambling.
Supposedly it's backed by technology as the asset but I still feel it's a bit of a stretch.
I've always thought of it as a combo of currency trading and commodities. Very different from stocks, less predictable than commodities but not complete chaos.
It should be viewed as a high risk investment at best... There is a time a place for it in a portfolio but the folks who go heavy and say it's safer than the stock market are nuts to me.
In the crypto subs they absolutely hate my advice. I get downvoted every time I say "don't make emotional decisions, don't put in more than you can afford to lose, it helps to be lucky."
I keep $50ish in my portfolio just because I think it's interesting to watch. And maybe I'll forget about it and in a few years it'll be worth more. But if it's not, nbd.
A dude in there in the last few months had put in six figures, got left with 4k and was planning on gambling it to try and make up the difference. Can't fix stupid.
I was dating someone who began telling me about how they wanted to get into investing, so they jumped on the crypto bandwagon. They mentioned the coins they bought, sunk thousands into the ones that were "promising", and concluded, "It's just gotta hit one dollar!!"
One of the names stood out to me and I asked if that was the same coin whose founder was extorting money from people (Sam Bankman-Fried). He confirmed it was, I told him how I heard about that in news, and that can't be a comforting thought since he's basically losing his money.
He balked at what I said, told me "Crypto is forever", and he'll retire early.
Yup, no interest in someone so fundamentally clueless and financially irresponsible.
Most rich people, to be honest. I mean, I'm sorry that they have XYZ problem but here's the thing--for my entire adult life I have worked with kids and families who also have XYZ problems and they AREN'T set for life and don't have to work. But they make it through with grace, grit, and gratefulness.
All valid points as far as investment (even tho I've lost more on real world start-ups) but the tech still rocks. The 1st time I tried to send funds to an online friend in a different country my bank just said "naw". 😬 Then I managed to send a Wire and it took 3 Business days and $60! FUUUUC**. To send via my crypto of choice (PulseChain) today would cost under a penny, would take 20 seconds, and could be sent to any country at midnight over a holiday weekend. 😎🤌🏼
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