Statement:
Quote:
Originally Posted by royamcr
You aren't down until you sell. If you believe in the stock of course average down and buy.
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Reply:
Quote:
Originally Posted by Chung Tran
Biggest myth Wall Street ever concocted. Hedge Fund Managers repeat it, to keep you invested in a crap Market, and you get shorn like a Sheep.
Congrats Bitcoin holders. Y'all are down 20% this week!
Oh sorry, you aren't down until you sell. My bad.
You had $100 Monday, now you have $80. That's ok, you will make 25% next week and be even  |
Yes, royamcr. Good point. You haven't incurred a loss until you sell!
Too bad the billionaire Hunt Brothers of Dallas forgot that important concept in the immediate aftermath of "Silver Thursday" in 1980.
Unfortunately for them, the silver market suddenly started tanking and they couldn't meet Bache's $100+ million margin call.
They fucked up by failing to get their attorneys on the phone immediately to read the riot act to Bache and a couple of other Wall Street houses.
"Hey! You're not allowed to issue a margin call to our clients. Their valuations are not "down," since they have not decided to sell quite yet!"
As for the bitcoin "cryptocurrency," here's my contrarian take:
It's often said to be a "Ponzi scheme," a cryptocurrency, an "investment," an inflation hedge, or a store of value.
First, it isn't a Ponzi scheme because that's simply not how it's structured. (If you doubt that, look up the definition of Ponzi scheme.)
Second, it isn't a cryptocurrency for the simple reason that it isn't a currency. In order to function as a currency, something must be generally acceptable as a medium of exchange.
Third, it isn't an investment because it has no intrinsic value, no assets, and no earnings. It's nothing more than a speculative gaming chip.
Fourth, it's highly uncertain (to say the least!) that it's likely to serve well as either an inflation hedge or a store of value.
Yes, it's possible that bitcoin will eventually go to $100K or even to $500K/coin sometime in the future.
But there are a lot of ways this could go off the rails. The US government and other governments around the world might sharply restrict or regulate BTC in some way. Some other "cryptocurrency" might become the hot flavor of the month and take its measure. Big traders and whales might repeatedly pump it, ride it, and dump it through many cycles, keeping it within a narrow trading range or even driving it net down over time.
For those who decide to "HODL" over an extended multiyear period, good luck!
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