Crypto currency (IF banned from CA)

[evilwebby]

I don’t see a scenario where stocks get cut in half really. I mean I could, but the risk is so negligible it’s not worth factoring in to any rational decision making process.

Stocks suffer a 1/3 decline on average once a decade and get cut in half or worse on average every 20 years. If you invest in stock the way everyone says you should - ie buy and hold over the long term - then you should expect to live through at least 2 or 3 of these huge corrections.

 

[LinekersLegs]

I think in a scenario where stocks get cut in half cryptos go -90%.

The difference is that it is exponentially more difficult to recover from larger losses. To get back from a -50% fall you need to double your money. That's doable, especially in the stock market as the mechanism for long term growth (ie a leveraged play on economic growth) is well understood and cashflow can be reinvested.

Even then takes a long time - took Nasdaq index 15 years to recover 2000 highs and many of the dot com stocks that were a part of it no longer traded as I know to my own cost.

 

[Gwladys St. Glory]

Hello Wall Street lads. Thank you for your market insights, I’d like to see you the next best thing, it’s coming from out east and is called Snaeb Cigam. It’s growing like crazy and giant returns are right there for the hardy.

Stop making fun of Stock Market Simulator 2022.

EA are working on another patch as we speak.

 

[DuuuncanHadaPigeon]

It's the penny stock mentality

Why do you compare HEX to BTC? Just because they are cryptos? Obviously not every single Crypto can go on to grow the same way as BTC has, otherwise Cryptos would account for about 99.9% of global assets

Because it does everything BTC does but better.

 

[The Gueye Science]

Because it does everything BTC does but better.

What is it for?

 

[LinekersLegs]

What horrendous advice

 

[evilwebby]

Because it does everything BTC does but better.

which is.. nothing? Still waiting to see an actual practical real world appliance for BTC other than buying cleaning services on the dark web

 

[LinekersLegs]

 

[evilwebby]

Even then takes a long time - took Nasdaq index 15 years to recover 2000 highs and many of the dot com stocks that were a part of it no longer traded as I know to my own cost.

Yes it can take a very long time to recover. While economic growth can reliably expected to expand by 2-3%/year, the problem is that valuations can also vary wildly. If you buy the market when its trading at 40 times earnings and the market adjusts back to 10 times earnings you will need a LOT of economic growth over a long number of years to finally earn a real return on your investment.

Examples:
33 years later the Japanese stock market is still -40% from its 1989 all time high when investors were paying an absurd 65 times earnings.

22 years after its dotcom peak the FTSE is only 10% high than its 2000 all time high when investors were paying an eyewatering 32 times earnings - still well down in real terms.

Even when you add back in the dividend for total returns it's not very impressive.

An investment is very simply the value of all future expected cashflows discounted to the present. If you can't make that calculation about anything you are buying then it's not an investment, it's a speculation.

 

[LinekersLegs]

Yes it can take a very long time to recover. While economic growth can reliably expected to expand by 2-3%/year, the problem is that valuations can also vary wildly. If you buy the market when its trading at 40 times earnings and the market adjusts back to 10 times earnings you will need a LOT of economic growth over a long number of years to finally earn a real return on your investment.

Examples:
33 years later the Japanese stock market is still -40% from its 1989 all time high when investors were paying an absurd 65 times earnings.

22 years after its dotcom peak the FTSE is only 10% high than its 2000 all time high when investors were paying an eyewatering 32 times earnings - still well down in real terms.

Even when you add back in the dividend for total returns it's not very impressive.

An investment is very simply the value of all future expected cashflows discounted to the present. If you can't make that calculation about anything you are buying then it's not an investment, it's a speculation.

And by trying to claw back to breakeven in one asset class you often lose out on other areas in the recovery period better for investment or, if you are more risk tolerant with the money, speculation.

Had quite a bit of money tied up in QQQ after dot com bust that evenetually realised was better taking my lumps and moving on to a better diversified portfolio that holding on waiting for it to recover.

 

[chicoazul]

Cryptoscruffs, as you can see from the posters above you’re way way out of you depth. You can’t raise your stake just by over insisting it’s gonna be fine on a football forum lads. You’ve gone in too deep and it’s clearing you out sadly, prise your ego away from the loss with a crow bar and return to your usual pursuits like collecting Star Wars figures, listening to Iron Maiden and giving off the air of sex attack. Thank you.

 

[Wizard]

What is it for?

Absolutely nothing, say it again y’all

 

[LinekersLegs]

 

[JimmyJeffers]

Morning everyone!

 

[DuuuncanHadaPigeon]

which is.. nothing? Still waiting to see an actual practical real world appliance for BTC other than buying cleaning services on the dark web

I agree and have said this about 50 times in this thread, BTC will never be used as p2p digital cash.

Really disgusts me stuff like this. Not your keys not your crypto!