• Bipta@kbin.social
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    1 year ago

    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
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      1 year ago

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

      • MeatsOfRage@lemmy.ca
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        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
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      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
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      1 year ago

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

    • blanketswithsmallpox@kbin.social
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      1 year ago

      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
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        1 year ago

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

        • blanketswithsmallpox@kbin.social
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          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

      • alienanimals@lemmy.world
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        1 year ago

        “Hurr durr, any financial asset is a Ponzi scheme because when people buy it, the price goes up! I am vry smrt.” -blanketswithsmalldicks

              • alienanimals@lemmy.world
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                1 year ago

                Neither am I. Nice straw man!

                I’m sorry you’re dumb enough to think the entire stock market is a ponzi scheme. Try Googling something you don’t know before showing everyone that you have a room temperature IQ.

                • blanketswithsmallpox@kbin.social
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                  1 year ago

                  The entire stock market. Not even metaphorically, the entirety of it, is so the rich can get richer and stay that way.

                  Eventually economies will have to scale to a non-growth sustaining setup which renders the ‘free money from nothing by sitting on vast quantities of it’ obsolete. It’s a setup where literally millions of people put into shit like ROTH IRAs depend on money being created from nothing due to an inability for most economies to sustain retirement unless you invest in it yourself. Those social safety nets are going to be a nightmare to figure out when that realization hits.

                  In that world, the little guy gets almost exactly what he puts into savings. No compound interest. No making vast quantities more for the people on top. No millions putting in a little at the bottom to get an extra 10,000, while the people on top of the pyramid make LITERAL trillions.

                  That, is a literal ponzi scheme. Because modern economies depend on what’s essentially accounting magic to keep rich people in power there while handing down as little as possible to the masses to BARELY survive their twilight years.

                  Short of unlimited free energy combined with carbon sequesteration, the stock market is almost a literal direct indicator at how much pollution we’ve created too. It’s not sustainable. The market as we know it from the last 100 years is not sustainable in the same way in the next 100. Economic growth and pollution have only recently started to taper off thankfully. Greener initiatives are even good signs for stock now. Hooray!

                  I’m just glad I won’t be old enough to have to go through that incoming disaster lol.

                  https://www.entrepreneur.com/money-finance/the-stock-market-is-a-legal-ponzi-scheme/355907

                  https://conduitadvisors.com/stocks-are-a-fraud/

                  https://www.newyorker.com/magazine/2020/02/10/can-we-have-prosperity-without-growth

                  https://www.wbur.org/onpoint/2020/02/12/economists-slow-economic-growth

                  https://m.youtube.com/watch?v=LxgMdjyw8uw

                • Pregnenolone@lemmy.world
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                  1 year ago

                  Redditors use the term Ponzi Scheme to refer to anything they don’t understand. It’s a massive pet peeve pseudo-intellectualism

                • escapesamsara
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                  1 year ago

                  The stock market is mostly a ponzi scheme, hence the new regulations every few years when someone from the lower classes figures out a way to exploit it the old guard haven’t though of yet. Then again Capitalism is a ponzi scheme since it requires an infinitely expanding set of poverty slaves for any class to increase its personal wealth.