Quoted from TRAMD:
That might be impressive on other forums but the level of intelligence and wealth is higher here than your average forum. That was the point of my "signature". There are many people on Pinside who are smarter and/or richer than you and me. There are also a lot of smart, rich people that have made terrible investments.
i don't think bragging about wealth is an effective move anywhere. i grant you Pinside is richer than your average forum, but i disagree that it's necessarily more intelligent. there is not as strong a correlation between wealth and intelligence as rich people tend to think there is. some of the smartest people i know are actually pretty poor (and i know a lot of very wealthy people).
Quoted from roffels:
I consider it unethical to support cryptocurrency mining as it is, it has little to do with risk. A lot of electricity/resources are used for something of no intrinsic value. I'd feel a little differently about it if the calculations were tied to disease research or something. Maybe an alt coin is doing that?
"intrinsic value" is a loaded term. a dollar has no intrinsic value, either. do you avoid consuming electricity to make dollars?
and the truth that most people don't want to admit is neither does gold. gold's use in industrial applications is completely trivial relative to its market value. and you know what? a long history of being used as a store of wealth does not constitute "intrinsic value" either. that's just tradition. furthermore,"intrinsic value" is a completely useless term, wielded solely to hypocritically bolster older currencies against newer ones. it's also useless in practical terms: if the world ever reaches a cataclysmic point where financial system collapsed and the only currencies worth anything were those with "intrinsic value", then three quarters of us would likely be dead already from the nuclear holocaust anyway. i want to make it clear that my investment portfolio is utterly unconcerned with planning for that eventuality. similarly, my portfolio strategy is not based around the possibility of alien invasion, zombie apocalypse, or the sun spontaneously exploding, either. my future financial plans are for the world i'm actually likely to be living in.
gold is backed by nothing more than tradition. dollars are backed by the institution of the U.S. Government. Bitcoin is backed by the blockchain and its distributed public ledger. ultimately, though, all three only hold value as a result of abstract human concepts, and the truth is that worldwide momentum is, in practical terms, far more important to their value than any other factor.
Quoted from ronaldvg:
Wanted to give my opinion on this thread as I read it fully. My problem with all these kind of threads is that we hear mostly about the succes stories. Some will point out they lost at some point, but mostly it is bragging how well they are doing and thatyou are stupid or at the least unedjucated if you do not also take the risk.
this is wrong. there's no self-selection at work in this particular case, only because bitcoin has risen over 1,000% in the last year. just about anyone who has taken part is a wild success story right now. it's almost impossible, over the last few years, to have not made a huge profit margin on whatever you've put in. of course, past performance is not indicator of the future! i'm NOT saying it is impossible to lose money or that it will go up forever! and i want to re-iterate (for the hundredth time on this thread) that it's a high-risk investment that could go down at any time and in my opinion shouldn't make up a large percentage of anyone's investments. but the point is, there are probably very few people here sheepishly holding their tongues because they've lost money on bitcoin - if you've been in at all over the last few years, you're almost automatically up by a ton. (well, unless you lost the keys to your wallet or were the victim of theft or something).
edit: actually it has been down from its all-time high over the last couple weeks, but over the last year, it is still up over 1,000%.
Quoted from ronaldvg:
My problem with that is that the less disposible income you have, the more you have to gain by entering in such a venture. BUT the more you also have to lose !!! If you have enough money to not have to worry about losing 100000 then you will not get into problems but I have seen more than one guy getting caught up in the hype and lose too much, one almost went mental and another is not with us anymore because of the loss he took.
Everybody can warn a thousand times to be sensible about this and not use money you cannot afford to lose, but it does not work like that. It is just as dangerous as a gambling addiction. Once you won, you want to keep on winning at all cost. If you are succeptible to getting addicted quickly, threads like these could be litterally lethal. I am lucky to not want to gamble ever (went to Vegas three times now, gambled 1 dollar every time ) but the prospect of easy money is can be VERY attractive, mostly for the people that cannot afford to lose.
Just my two cents.
dude anyone with the qualities you are describing is destined for ruin no matter what. yes, people with uncontrollable gambling addictions should not gamble. point taken i guess? most people aren't gambling addicts, though.
i hope you have the exact same level of absurd vitriol and fatalism for mutual funds and the stock market, because they are pretty much the same thing. retirement funds are all evil, deadly, suicide-inducing gambling addictions if you're addicted to putting all your money into high-risk ventures. yes, ANY market can go up and down. that's what makes them investments. there are plenty of high-risk mutual funds, hedge funds, and stocks available to anyone with a 401k.
the advice i've always received from financial experts is that a healthy portfolio contains a variety of safe and risky investments. if your friends lost their asses by betting the farm on all risky stuff, i'm sorry, but they're stupid. my mining represents less than one tenth of one percent of my total net worth. Do not blame me (or bitcoin) for dipshits being irresponsible with their money. I've been both preaching and practicing pretty responsibly, i think.
hopeless gambling addicts are not my responsibility, and are kind of irrelevant to this discussion.
investing in cryptocurrency is on the extreme risk / extreme reward end of the investment spectrum. nobody should be basing their future financial security on it. for me, mining coins has been a fun and extremely profitable endeavor. i'm happy to chat about it or share what i've learned. but if someone else ignores my advice and ends up broke ... i am not going to blame myself.