IndianaJones
Registered User
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Just wondering what way would you split a Bitcoin/Etherium investment if you were just starting out?
What split between Bitcoin and Etherium
- Thread starter IndianaJones
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Tough one....I'd probably flip a Satoshi
Brendan Burgess
Founder
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If I were worried about my future wealth, I would not be gambling at all.
Brendan
My salary is going to be halved very soon due to loss of shift pay
Im with my currently employer for 13 years. Because of shift and oncall payment I've been earning 60-75k every year in that period . Its been decided in work that we wont needed on shift or do oncall any more which means within 6 months ill be back on days earning 39k. Im resigned to the fact Im...
www.askaboutmoney.com
Brendan
It depends on what your thoughts are on the outcome for both projects. Bitcoin is decentralised money and a decentralised store of value. Ethereum is pursuing the decentralisation of finance. There are those who believe that far greater disruptive potential will come from Ethereum. i've seen some move to a portfolio with a higher ETH weighting than BTC over recent months. That said, there are bitcoin-centric decentralised finance projects being developed also like Sovryn and Stacks. Additionally, Jack Dorsey's Square came out yesterday and said it is creating a separate open-developer platform to facilitate bitcoin-based decentralised financial services.
As regards any claims of this being gambling, would taking a position in Amazon in 2005 be gambling? If the appropriate position size is taken, then it's not gambling.
None at all and none at all
It’s gambling not investing because it has no expected return because it has no intrinsic value
The very definition of gambling - no diversification to include exposure to an asset that has produced an average return of 213% pa over the course of its 12 years.
Past performance etc...
Past performance, etc indeed. However, the suggestion is to summarily ignore the principal assets in a brand new asset class with zero allocation. Given the asymmetric risk, a portfolio allocation of up to 5% seems reasonable. Nobody gets wiped out if it fails to perform.
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Nay, 5% is far too much given the level of risk. Burning the 5% in cash for heat, or eating the 5% in cash for nutrition would be a better use for the money, IMO.
Again, you're suggesting a zero percent allocation to an asset that has outperformed every other over the course of 12 years. Furthermore, you're completely ignoring the asymmetric nature of that risk. In no way do I agree.
Just apply that thinking at any point over the last 12yrs and see how silly it is.
Easy to say that in hindsight. We invest today for future returns, not for past returns.
True, but given what you know from hindsight it does appear to be silly.
By bringing up 'tulipmania' you betray the fact that you know next to nothing about what you refer to. Hardly anyone runs with the tulipmania comparison anymore - for good reason. The comparison is entirely wayward.
I asked a straight-up question. I made no comparison.
It's a quasi comparision. Anyone that understands the fundamentals of what makes for sound money and what makes for a decent store of value wouldn't utter the word 'tulipmania' in a discussion relative to bitcoin - end of.
No, because we also know of its phenomenal crash which never recovered off the floor. Unlike bitcoin, which has repeatedly recovered from price crashes and gone onto new all time highs.
Because you say so.
Until the time that it doesn't. This is why I wouldn't recommend it as an investment for the future. It's totally reliant on people pumping up the value through hype. It's the largest ponzi scheme known to man.