Why the Crypto Collapse Matters

[Onomea]

I have not followed our discussions here on crypto currency because, basically, I am not interested in it. I have felt since I first started hearing about it that it was something I wanted no part of. (I find the traditional stock market plenty risky enough for me.)

Still, this is a useful article in that it explains in fairly simple terms what is going on and why it matters:

Why the Crypto Collapse Matters - The New York Times

 

[ladder13]

RippedOH

 

[Onomea]

RippedOH

??? I have no idea what that means... Maybe has to do with me knowing close to nothing about crypto... Or knowing very little internet slang?

(Maybe just another example of the wisdom of the old truth that the older I get the more I realize how little I know..)

 

[ladder13]

??? I have no idea what that means... Maybe has to do with me knowing close to nothing about crypto... Or knowing very little internet slang?

(Maybe just another example of the wisdom of the old truth that the older I get the more I realize how little I know..)

Just my play on CRYPTO.

I did notice the reference to contributions in that article. Maybe affected the lack of any oversight?

 

[Onomea]

...I did notice the reference to contributions in that article. Maybe affected the lack of any oversight?

What?! Surely, you jest!

 

[DWalt]

Warren Buffett’s comments on crypto:
Warren Buffett's 16 Best Quotes About Bitcoin, Crypto Investing

 

[Kinman]

One of the things that has stuck with me regarding investing in the stock market and for that matter elsewhere. Something that really stuck in my mind concerning crypto and the understanding of it and how literally everyone was getting into crypto including my son, against my advise. I can't remember exactly how this information was received but I just remember the story. It seems J Paul Getty was on the elevator ride up to his penthouse apartment with one of his closest partners. They got on and there was one operator in uniform and his buddy was with him talking incessantly about all of the money available in the stock market. This was just before the crash in '29. According to the story Getty was listening to these two elevator operators talking about their investments in the market and the "killings" they were making. Getty and friend got off the elevator and Getty turned to his partner and said "The stock market is in serious trouble, we need to make some changes." Within weeks of this discussion the market crashed and Getty managed to save much of is fortune. The lesson according to what I remember was that if a couple of elevator operators could be making a killing in the stock market something must be wrong, that is my sentiment when it comes to crypto...something that easy, shouldn't be.

 

[Onomea]

Warren Buffett’s comments on crypto:
Warren Buffett's 16 Best Quotes About Bitcoin, Crypto Investing

Excellent.

 

[Onomea]

.. The lesson according to what I remember was that if a couple of elevator operators could be making a killing in the stock market something must be wrong, that is my sentiment when it comes to crypto...something that easy, shouldn't be.

This reminds me of the Japanese economic miracle, the bubble, bursting in the early '90s due to rampant land speculation.

 

[Rustyt1953]

One of the perks of not having disposable income is not having to fret over foolish or risky investments.

 

[Bullet Bob]

I think blockchain technology will be of use, but I darn sure don't know how it will shake out. NOVA on PBS had a good special on this week about how it works, uses other than with money, etc. Worth watching if you'd like information with both pros and cons.

 

[Kinman]

I think blockchain technology will be of use, but I darn sure don't know how it will shake out. NOVA on PBS had a good special on this week about how it works, uses other than with money, etc. Worth watching if you'd like information with both pros and cons.

I completely agree that it does and will have a proper place. It has proven to be useful in third world countries as a method of transacting business in everyday life. Risky adventures often produce excellent results and at the same time you can lose your shirt. As with most anything in the investment world it does pay to study in depth what you're getting yourself into. I have a cousin that considers herself a "day trader" because she has been working the stock market from her home computer for decades. I think she has done OK but would probably have done much better trusting a real stock broker that has a proven track record and an education in market strategy. My son on the other hand got talked into investing a good deal of his retirement fun and at the same time tried to talk me into the same thing. I did not understand how the system worked and told him it looked like risky business to me and he should do a bit more research before jumping in...."Oh its gonna be great Dad." Yeah well it ain't so great now is it?

 

[ladder13]

Charles Ponzi would be jealous.

 

[DWalt]

Investing in blockchain technology development is much safer and more promising than dealing in cryptocurrency, and there are several ways to do it. Blockchain is, at its core, an extremely secure database that cannot be hacked or destroyed. It is now finding uses in a multitude of financial, business, logistics, military, and manufacturing applications that have nothing to do with cryptocurrency transactions. The technology has nowhere to go but up.

 

[Chuck24]

I’ll stick with the stock market, if I’m going to lose my money, I’d like to at least be able to understand why.

 

[Clarke Hammer]

... if I’m going to lose my money, I’d like to at least be able to understand why.

THAT, good sir, is the wisest line I've read in a while.

 

[Willyboy]

Crypto

I also watched the PBS show on Crypto the other night. After the show I was
just as confused as ever. Willyboy

 

[Beemerguy53]

One of the perks of not having disposable income is not having to fret over foolish or risky investments.

Over the course of my life, I've spent about 75% of everything I've ever earned on guns, motorcycles, fast cars, good beer, and beautiful women.

The other 25% of my money? I just wasted it...

 

[S&WIowegan]

I spent my entire career as an investment analyst/ manager and investment banker. I knew from day one Bit Coin and it's imitators was another version of the Dutch tulip bubble hundreds of years ago. I never try to influence anyone or give advice. I knew the end was near when Odell Beckham Jr. was advising us all to get into Bit Coins.

The fact is a segment of the population wants to believe in fabulous easy money. There is no way to prevent it from happening over and over again.

 

[DWalt]

I spent my entire career as an investment analyst/ manager and investment banker. I knew from day one Bit Coin and it's imitators was another version of the Dutch tulip bubble hundreds of years ago. I never try to influence anyone or give advice. I knew the end was near when Odell Beckham Jr. was advising us all to get into Bit Coins.

The fact is a segment of the population wants to believe in fabulous easy money. There is no way to prevent it from happening over and over again.

Number 7 of Buffett’s comments re crypto. However, the Tulip Bubble was somewhat limited in its effects to only a relatively small number of tulip speculators and it did little to adversely affect the Dutch national economy. One thing it did result in was to establish the need for regulations to control unbridled trading activities. And we are now in somewhat the same situation involving crypto trading which is also, to a large extent, unregulated.