Cryptocurrency is a waste. Crypto is not an invesment!?

in #cryptocurrency6 years ago

Crypto is a Wild speculative West.

See below why I wrote that crypto is a waste

What is an investment?


Benjamin Graham said that investment is

...Upon thorough analisys promises safety of principal and an adequate return.


Screenshot_6.png

Does crypto have some kind of 'safety'? Does it has an adequte return?

No NO and No. There is 100% return in a month or - 70% in a day. Around 1000% in three months or - 50% in a hour. It's crazy. I know that the more success the more fluctuation, but it's not an investment when you buy based on market cap.


We can say that crypto market is equal to stock market at it's start.

  • No government regulation.
  • No taxation. Yet)
  • Fraud is everywhere.
    Like cases when people tried to buy bitcoins in a offline office
  • Simple people treat this like a gamble.
    There were something like casinos with a prediction of a stock prices.

What is better: get 500% or get 1000% and then lose 50%?

He have said that stock market had a trouble between 1929 - 1932 - all common stocks were speculative in nature. Ok, it's normal economical situation.

But if we look on wikipedia then we would find that defenition of speculation is equal to investment . You buy something and you hope to get a profit after. Those words are vague, but speculation is stand more for riscky activities, hence it will be more appropriate to tell that you are speculating on crypto.

You could say that you are HODL, but do you hold this asset for a year or two? No?

Screenshot_3.png

Investors hold for YEARS. When someone buys a home, he use it for making rental income, and in the end he sells it. He buys stocks with dividens... He buys something that makes money while he keeps it.

Investor calculate worth of stock/crypto base on value of it's business. A speculator based his actions on assumtion that someone will pay for it more.

Read "The Intelligent Investor" by Benjamin Graham. It worked before crypto and will work after. Learn and then take a risk.

p.S: I wrote that crypto is a waste for a google search. It's first thing that come up when you type 'Cryptocurrency is ...'

p.S: FOLLOW an UPVOTE if YOU LIKE MY CONTENT

Coin Marketplace

STEEM 0.21
TRX 0.14
JST 0.030
BTC 67422.69
ETH 3492.15
USDT 1.00
SBD 2.70