Why cryptocurrencies are not a good investment

[Anonymous No.10094279]

I think everyone loves the idea of getting rich quick by netting 5000% profit from selling the next Bitcoin, however we are now in the age where this is never going to happen again. At best CC resembles gold, which might give you small profits over time by buying and selling carefully. But cryptocurrencies are inferior to "normal" investment vehicles in a few crucial ways.

1. CCs do not provide income. Dividend stocks provide income just by owning them; cryptocurrencies do not. Bonds pay interest which you receive at maturity; cryptocurrencies do not.

2. Cryptocurrencies are not tied to an underlying asset. Real estate is valuable because land and buildings have tangible value; businesses have products, sales potential, manpower, market reach... even gold, which is not an appropriate investment for most individuals, is concrete and exists independently of the market. Cryptocurrencies are just electrons on hard drives.

3. The only way to profit from cryptocurrencies is to sell higher than you bought. But even here, cryptocurrencies are inferior to conventional forms of speculation such as non-dividend stocks and derivatives. When you are thinking of buying stock in a company, you can read their balance sheets, look at their K's and Q's, listen in on the shareholder calls, look at the business as a whole... There is no way to do this with cryptocurrencies. The value of any coin is based only on hype and fashion. (cont.)

[Anonymous No.10094333]

4. Cryptocurrencies are in a grey area when it comes to financial law. With the SEC still trying to figure out how cryptocurrencies should be classified and CC tax laws still up in the air, along with banks being very wary towards CCs due to AML regulations, why take the chance? You are compounding these risks on top of the inherent speculative risk of cryptocurrency trading. If you want to invest, why not just open an IRA? If you want to trade stocks, why not use Robinhood or something? And if you just want to gamble, why not go to a casino? At least then you can maybe get your drinks comped.

So that's it from me. I see a lot of people here who are focused and have a lot of technical ability but don't understand basic economic principles. I'm no expert, but once I started learning about how markets and trading worked, cryptos became less and less attractive to me. So it's a shame to see people who could actually be earning consistent income piddle away their money on the "next hot coin" - but the choice is yours.

[Anonymous No.10094377]

What are you even on mate? What is the point of this shit post?

[Anonymous No.10094393]

just bought 100k tesla shares

[Anonymous No.10094432]

>>10094279
You know what OP, this is the first time that I've seen a post like this.

[Anonymous No.10094433]

TSLA = Crypto of the traditional markets b/c of this https://twitter.com/ChartsCrypto/status/980950289200177154
big ass returns in the future.

[Anonymous No.10094456]

>>10094433
TSLA : biggest bubble right now

[Anonymous No.10094488]

>>10094456
nahhh. I have no doubt that Musk will meet all the production targets. early/mid 2020s TSLA can be the king of auto.

[Anonymous No.10094593]

>>10094279
I'll byte
1. My Bcash and Bgold show you are wrong.
2. Cryptocurrency value comes from proof of work, you need to learn and understand what that means. Bitcoin gives me airdrops, and the price goes up, almost yearly, for the past 8 years. Giving me much higher returns than anything in the stocks.
3. I already told you how to profit from crypto, but you also don't need to sell all. Most people who buy stocks don't make the money from the dividends, they buy s&p500, and sell a percentage (smaller than the increase in price) every year. They still end up with less stocks. You can do exactly the same with bitcoin. If I had sold 4% of my bitcoin every year since I started, I'd be making solid gains, and still have a lot more value in fiat than I had when I started.
4. Cryptos are not in a grey area, the SEC has been very clear about it, you need to inform yourself and update your facts. And yes, banks are wary towards CCS because they know that if bitcoin takes over, they won't be needed anymore. I don't need a bank to hold my money. I don't need someone making a profit and playing with my money. Bitcoin solves that problem.

You are an idiot.

[Anonymous No.10094621]

>>10094279
“CC’s”

Stopped reading right there. I’m sure your short won’t get liquidated buddy, no need to be a faggot