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2010 2011 BMW 5 Series Forum F10 Crypto Investment for long term |
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04-17-2021, 11:00 AM | #1 |
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Crypto Investment for long term
I thought I'd start this because another thread seems to head that direction but a little off topic.
I just made my first purchases on Kraken. I don't own a cold storage wallet at this point. Doing some DD to see if I want move a legitimate portion of investment to cryptocurrency for long term investment. Anyone on here investing? What do you like and why? I haven't gone after anything ultra speculative, but definitely interested in some gambling with fun money. I'm thinking about Bitcoin, but wondering if it's better to spread over more currencies?
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04-17-2021, 11:41 AM | #2 |
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A currency is two things: a store of value and a medium of exchange. If there is high inflation, the store of value function is very limited (temporally). If the currency isn’t widely accepted for transactions, it fails as a medium of exchange.
So are crypto-currencies really good at being currencies? To decide, you need to evaluate both supply and demand dynamics for the currency (too much supply/production will result in inflation, or currency devaluation, insufficient demand for the currency will have the same effect on its value), and the ability to transact with it. Will governments allow it or ban it? Is it secure from interference, hacking, etc? Since all national currencies are manipulated by government (whether officially pegged to another, revalued, or inflated), there is value risk in any of them. The USD has been the reserve currency for several decades, but that is likely to change in my lifetime (prediction: Yuan). Will crypto currencies face similar valuation/manipulation risk? Yet to be seen. To me the value in them today is the ability to transact where tracing is not desired by both parties to the transaction, and to hold an asset that is believed to be untraceable by government. However, if you’re a prepper, you have to think the electronic infrastructure these currencies rely on may not survive whatever you’re prepping for. Similarly, their “darkness” may not last, certainly as they are converted to traditional currencies, so tax avoidance may not work. This is a developing area of finance and could well become mainstream (but which coin/s?). Could also be destroyed by government actions. For me, play money only (and I’m not in any crypto today, since I really don’t want to educate myself enough to play and I’m not a trader/speculator). |
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04-17-2021, 04:18 PM | #4 |
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I'm a research analyst for a crypto exchange. I think in the long run, cryptos such as bitcoin are going to be worth a lot more than they are now due to the macroeconomic factors at play which affect the long term ability of fiat currencies to act as a store of value.
That being said, I'm sure you've realized there is significant volatility since the price action of these instruments is dominated by speculative demand, which is skittish in nature. If you are going to move more of your portfolio into crypto, I would advise patience and averaging in, and then not looking at it too frequently if you aren't used to the volatility. If you're talking about buying cryptos other than bitcoin, I think ethereum and some other tokens are also promising, but for a different reason to bitcoin. While bitcoin is a good store of value, other tokens that facilitate smart contracts and decentralized applications are valuable because of their utility and potential to overtake traditional industries such as banking, finance and so on. Ultimately, make sure you DYOR to build conviction - otherwise you will end up making a lot of bad decisions. Good luck! |
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04-17-2021, 04:31 PM | #5 |
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Dalio and Miller speak either neutrally or favorably about Bitcoin and crypto. Miller says that anyone who owns stocks can afford to invest 1% of their net worth in Bitcoin. At one point, he had the largest Bitcoin position in the world.
Buffett calls it rat poison squared. Powell seems to talk about it in a neutral way, and doesn't seem to say much while doing so. A guy on a forum where I have participated for over 20 years had his crypto wallet hacked and lost his investment. So there's that. I'm not investing in it now. I have an entry price where I will give it a try. My entry price may never be seen again. |
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04-17-2021, 04:32 PM | #6 | |
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04-17-2021, 04:42 PM | #7 | |
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04-17-2021, 06:01 PM | #8 |
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Yep, that's basically what I do.
It's interesting you mention efficiency and modernization. I must say, although there are some efficiency gains with regards to crypto's payments use case, this has nothing to do with any inherent efficiency in blockchain systems. Any efficiency gains seen in crypto are only a result of the extremely inefficient financial infrastructure we have today, where wire transfers are still transmitted via SWIFT and normal everyday financial functions still require overt manual intervention to be carried out. The biggest problems solved by blockchain technology aren't really efficiency related, but have to do with centralization. Crypto allows for fully robust systems that do not depend on any central party, which has great benefits for system resiliency against outages, censorship, corruption, and so on. If you look at any modern centralized system, they are all more efficient than the same system built on a blockchain. I agree that blockchain enabled virtual worlds (including social media) will become pervasive in the near future as people have increasingly persistent online personas that can only be helped by blockchain technology. Things like the virtual assets that you mention, will soon be integrated with the internet and be enabled by digital identity protocols that give a borderless experience even when switching between different platforms. Unfortunately it is really hard to keep up with the hundreds and thousands of projects out there with more launching everyday especially in this bull market. If you have limited time I would advise for you to limit your scope to blue chips and invest for the long run instead of trying to score a huge win in some speculative and unproven project. |
04-17-2021, 11:54 PM | #9 |
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I'm a big believer in Ethereum myself as a blockchain and as a store of value. I believe that once Eth 2.0 releases in July that it will become one of the best platforms to build on, plus with 2.0 and the burning of Eth with every transaction it will be a great store of value. That's just my opinion and like everyone says do your own DD.
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04-18-2021, 07:18 AM | #10 | |
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04-18-2021, 03:58 PM | #11 |
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Uhh Ohhhs.... https://finance.yahoo.com/news/bitco...094926937.html
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04-18-2021, 04:18 PM | #12 | |
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That $9k dip earlier this AM was probably a good entry point for some people who were looking to jump on the train. |
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04-18-2021, 04:56 PM | #13 |
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Yeah, you can't watch this stuff on a daily basis. The volatility is crazy. It's very different than my other investments. This can be a good thing if it aligns with your strategy.
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04-19-2021, 10:35 PM | #16 |
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04-20-2021, 03:13 AM | #17 |
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Ethereum
Cardano (ADA) ALGO Ren XLM-stellar TRX- tron ZRX-0x HBAR These are my long term picks, praying for at least 4 of them to go crazy in this decade(very confident in Eth & ADA, have the most money in them) DYOR before blindly buying If you're investing more than a few hundred bucks a hardware wallet is pretty necessary, only more & more scammers are gonna be going after crypto seeing how popular it's becoming |
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04-20-2021, 04:58 AM | #18 |
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04-20-2021, 06:12 AM | #19 |
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04-20-2021, 08:22 AM | #20 |
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04-20-2021, 01:59 PM | #21 |
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Still no pics of Lambos in this thread
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04-20-2021, 08:44 PM | #22 |
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I'm liking cardano and Tron. A lot of Cardano haters, but I like. Tron for gaming and online space. I've got some algo, stellar, Mana, and cardano. A little nano. Not sure what the recent spike was all about. Tron and a couple speculative gambling prospects on my list. I'll report back later on those. Thinking about adding to my cardano position. Missed out on the recent drop dur to wire transfer snafu.
Not crypto, but anyone buy the recent Altria dip? Loaded up on may 21 calls. |
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