All I ask people to do is not to pile in with a huge portion of their wealth. Then they can gamble away that little bit of wealth without too much overall risk. The problem of course is that people are being stupid, or unwise perhaps, and putting 50-100% of their wealth into crypto. That's... really bad.
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Rational position sizing - couldn't agree more. 50-100%??? I still think land is a better investment, probably precious metals as well.
Bitcoin is on its way up, but Im not convinced this King is good for anything. I like coins with actual use cases ;p
Yes, I asked a very popular person on here how much of her wealth was in crypto, and her answer was "Almost all of it." I cringed and the conversation stopped. There was no point trying to convince her of anything either. She's blinded and I'm not going to cure it. haha
True! We can only be responsible for ourselves.
Just to be devil's advocate, when I was about 12 almost all of my wealth was in Diablo II, and I spent most of my free time there as well.
This is to say 'almost all' of very little shouldn't concern us too much ;p
haha, true. She had a LOT though. From my discussion, it was near 100K. Sure, that's not a lot or a huge amount depending on the person considering it. I suppose if her net worth was 1 million, that 100K wouldn't be a big deal. However, I strongly suspect her net worth is about 100K. Yeah, uhm... please don't do that people!
Oh wow, yeah thats a lot of money for me (with that I would probably make my neighbors' neighbors my neighbors ;p)
So diversifiction is key to investing, but we must understand that diversifying within an asset class is not the same as diverifying between asset classes.
Yes! Thanks for bringing that up too. Owning many different crypto coins and nothing else is not true diversification. People should spread their savings around to many different baskets. I have property, land, precious metals, other metals, barter items, peer to peer lending notes, stocks, crypto, etc. There's no easy way to wipe me out completely.
Wow! You are very diversified!
Consider a few other baskets (that you may also have) in terms of value/wealth -
Food and farm production (meat on the hoof, preserves in the cellar, fruit trees, timber, garden, etc), personal network (friendliness and, crudely, favors owed), information (books, videos, guides; both physical and digital), knowledge and skills.
Wealth is future value - since the future is unknown, we can only guess at what forms of wealth will be the most valuable in the future ;p
A true pleasure discussing with you!
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