I buy a stock hoping that the company will become more profitable. And that would make their shares more valuable. Plus I collect a dividend. This process makes sense to me.
But evidently most folks buy Bitcoin solely on the hope that someone else will later buy their holdings at a higher price. I suppose it can be argued that there’s also an inflation hedge involved.
I just don’t get it. So I suppose I’ll remain out of the loop, a poor interested observer standing on the outside.
It is akin to speculation and is not for everybody.
I like long term lazy investing over the course of decades. Not glamorous but allowed me an early retirement.
I could argue that MOST people, buy stocks and have no idea what they really do. They just pile into whatever appears to be going well at the time.
When my daughter got pregnant several years ago, I started buy $20 a week worth of bitcoin for her. I figured when she is old enough, I would be happy t give her $20 a week—why not start now.
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The run today put that account over the cost of one year of in state tuition.
Will it go up, or down? Who knows. But as far as “life changing” returns are concerned, this has performed better than anything else I’ve owned this century.
No different than gold. But large gold reserves can always be found, and eventually it will be created in a lab, destroying its value completely. But there will never be more than 21 million Bitcoin, and it will only go higher.
and I thought I was the only one... :-)
Do you understand how Gold works?
Do you understand how real estate works?
So polite! I have no issue calling it the Greater Fool Theory.
Plus, you can use the earnings to back into a share price.
We have record mistrust in govt and eye shattering debt levels, interesting rationalizations yet still snail pace adoption.
Fun fact-
on the CME offering BTC futures-I wanted to short BTC and upon expiration, deliver the BTC like any other commodity. It would be an ultra convenient way to turn a lot of BTC into cash. Nope BTC is the only commodity on the exchange that is settled in cash.
It is stock now. The ETFs absorb nearly 75B this year. The halving will further reduce availability. FTX is 60% burnt and price is going to 137-180k before 2025. Gold ETFs have hugh outflows.
BTC ETFs approved worldwide or soon in many countries.
Your Fiat govt printing has added is approaching 2x just under Biden.
The ETFs are at the moment considered a higher rate of return than BTC itself. In two years the ETFs will begin to force prices up and most investment portfolios are 1-3% in ETFs.
Bitcoin over time has higher highs and higher lows due to mining and a limited supply.
It will have 21 million coins ultimately and will fractionalize infinitely and thus makes it deflationary.
So it teaches the holders to save with it.
Since I bought Bitcoin in late 2019 thinking I was late to the game because I could have bought in 2011 at $3. Anyhow, I am still up 1,300% in 4 years.