this post was submitted on 02 Sep 2023
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[–] Bipta@kbin.social 22 points 1 year ago (5 children)

Eh if you really believe in crypto it makes no sense to cash out, but every peak has shown that attitude of "this is when crypto will really go mainstream" was wrong.

[–] Cethin@lemmy.zip 16 points 1 year ago (1 children)

Well, it would be smart to cash part of it out and diversity your portfolio in case something happens.

[–] MeatsOfRage@lemmy.ca 12 points 1 year ago

Exactly. I hate this message that you should ride Bitcoin to the bottom because some day it'll be worth a million. Cash is a position. When it's low (and it always goes low) you can buy back in again. You effectively have more Bitcoin for the same invested cash.

[–] socsa@lemmy.ml 11 points 1 year ago

The value of the work done in the Blockchain must be tied to the value of the applications it supports. This was always the premise from day one. Originally, that application was supposed to be payment processing. A perfectly legitimate application, but one which comes with an interesting problem - it requires an external source of value. The value of a payment processing application can't be more than the value of the assets it can process. Also the Blockchain turned out to be pretty shit at it.

The speculative value of Bitcoin was always a paradox, and pretty obvious IMO. But cryptocurrency as collateral value for stake/work done in a distributed applications is legitimate, and some variant of it will eventually find some valuable application IMO. But those tokens will need to have stronger anti-speculation mechanisms built in.

[–] GBU_28@lemm.ee 8 points 1 year ago

Any effective investment strategy includes regular withdrawals, and you should never be over specified into one risk area

[–] blanketswithsmallpox@kbin.social 7 points 1 year ago* (last edited 1 year ago) (2 children)

Eh if you really believe in crypto it makes no sense

Yeah, which is why it's a Ponzi scheme banking on poor people's gambling addictions lol. Plenty of others have been duped into this shit since antiquity. MLM selling bored housewives Tupperware in the 1950s as if it was going to make them rich too. Stock is even more out of your hands unless you're already multi-millionaire rich.

The stock market, crypto, all of it when treated as short term get rich schemes is no different than literal gambling.

https://www.gatewayfoundation.org/addiction-blog/day-trading-gambling/

https://www.cnbc.com/2022/04/30/warren-buffett-rips-wall-street-for-turning-the-stock-market-into-a-gambling-parlor.html

https://www.forbes.com/sites/lawrencelight/2023/04/23/is-stock-investing-the-same-as-gambling/?sh=209dbb624ac9

https://www.investopedia.com/articles/basics/10/investing-or-gambling.asp

[–] Bipta@kbin.social 4 points 1 year ago (1 children)

Even if you think it's a terrible idea, that's really not what Ponzi scheme means...

[–] blanketswithsmallpox@kbin.social 0 points 1 year ago* (last edited 1 year ago)

Look, hit me with the pedantic semantic hammer as much as you want. I've linked plenty of proof above likening it to both definitions lol.

It's a legal pyramid scheme, ponzi scheme, whatever, when people at the bottom who put in can go literally bankrupt, while the people at the top reap 95% or more of the benefit while being COMPLETELY INSULATED from loss due to bailouts, other rich folk insuring losses, and 'bankruptcy' for corporations while C Suite execs still walk away with millions as long as it was a 'good Faith's' investment.

Tried to fuck the rich out of their money though? They shut down trade sites, send you to jail for insider trading, meanwhile all they have to do is time their sellout on stocks a whopping 3-6 months in advance before they liquidate their company to get a max payout. All while they buy our politicians who have the LEGAL ability to inside trade...

That is a scheme where people at the bottom get fleeced for their money. Millions getting fucked by it with so many getting squalid benefits for essentially investing 1/4 their income for literally half their lives, only for the rich at the top to still make out with bank.

It's a pyramid scheme. You can narrowly define what counts as a ponzi scheme as much as you want to try to avoid it, but it's the truth.

It's a legal ponzi scheme. As I've linked to with a multitude of sources making these direct comparisons with plenty of proof beyond concept.

https://www.investopedia.com/ask/answers/09/ponzi-vs-pyramid.asp

[–] funkless_eck@sh.itjust.works 5 points 1 year ago (1 children)

I too am also a millionaire in money I can't and won't spend

[–] Astroturfed@lemmy.world 4 points 1 year ago

They'll come back and buy more paddy's bucks, keeping it moving!