Why does the majority of the market treat crypto, or Bitcoin in particular, like high risk stocks which promise returns which they can't deliver, instead of just buying Bitcoin which goes up through scarcity?
It should be a no-brainer to put capital there, instead of keeping it invested in companies which are over their head in debt and won't make any profits.
Posted by NoidoDev
7 Comments
Bitcoin is everything people don’t understand about technology, combined with everything they don’t understand about money.
Because they are high risk and still very new
It’s 16 years old. Acne and b.o.
People need to be reminded that volatility and exchange rate risk are not the only risks but in fact the least dangerous.
The people who are successful stock investors don’t just put their money in high risk stocks or companies in over their head. They use a diversified portfolio of 1000s of different companies across different market sectors.
Diversified stock performance has shown impressive historical performance for well over a century. While bitcoin has had greater overall performance since its inception, we have a limited sample size of 15 years of history. Bitcoin has also experienced more volatility than stocks, which is why it’s considered a higher risk asset than a diversified equity portfolio.
There are plenty of things that are scarce but worthless. The debate is whether bitcoin has value beyond its scarcity. Hodlers believe it does, while skeptics don’t.
Ideally you own both stocks and bitcoin.
Look at retail dealing with some volatility in the traditional markets this week. People can’t handle big price wings. At all.
Because there’s zero underlying asset value. It’s entire speculation. That’s why. 🤣😂🤣