Cryptocurrency: Treat investing as gambling

[Stocky]

UK MPs have urged the government to treat retail investment in cryptocurrencies such as Bitcoin as a form of gambling. This has to be the most clear headed thinking on cryptocurrencies I've seen. 

 

Like gambling, cryptocurrency trading and investing can be addictive, MPs concluded. And while the underlying blockchain technology could benefit the wider financial services industry, the process of betting on the volatile price of unbacked assets such as bitcoin could lead consumers to lose life-changing sums of cash.

 

The report said that regulating cryptocurrencies as gambling would be consistent with the government’s principle of “same risk, same regulatory outcome”.

 

https://www.bbc.com/news/technology-65610851?

[save the frogs]

I've always viewed the stock market as gambling rather than investing.

Crypto is the same.

Volatility is one issue.

The other issue is people are glued to their portfolios 24/7. It takes over the mind. 

 

[ozimoron]

Short bitcoin now.

[bignok]

3 minutes ago, save the frogs said:

I've always viewed the stock market as gambling rather than investing.

Crypto is the same.

Volatility is one issue.

The other issue is people are glued to their portfolios 24/7. It takes over the mind. 

 

Warren Buffett is a gambler? Strange way to look at it.

[stoner]

13 minutes ago, ozimoron said:

Short bitcoin now.

thanks for the tip. just went 125x long on binance. 

[ozimoron]

8 minutes ago, stoner said:

thanks for the tip. just went 125x long on binance. 

I suppose it all depends on your targets for take profit. Good luck with that, not that I believe you did.

[stoner]

Just now, ozimoron said:

I suppose it all depends on your targets for take profit. Good luck with that, not that I believe you did.

liquidated !!

[Chicksaw]

A decade ago put everything I had, not a lot, in plain jane, missionary position index funds and left them there and now am wondering how the 'ell to spend all this money in the time I have.

 

Just kidding. Not really. 24/7 gals, travel, fine whiskey and gourmet cuisine should do it. Crypto? Ha,  ha, hee,  hee, ho, ha, ha, ha, ow, ow, my side hurts, ow.

[save the frogs]

35 minutes ago, bignok said:

Warren Buffett is a gambler? Strange way to look at it.

not exactly sure what he is.

maybe he was born in an elite family and used his contacts to get insider trader information.

but not sure. 

you're delusional if you think the average investor can become a billionaire in the stock market. 

if one guy makes billions in the markets, that means millions of people are losing money. 

he's outwitting people in the markets. 

 

[bignok]

3 minutes ago, save the frogs said:

not exactly sure what he is.

maybe he was born in an elite family and used his contacts to get insider trader information.

but not sure. 

you're delusional if you think the average investor can become a billionaire in the stock market. 

if one guy makes billions in the markets, that means millions of people are losing money. 

he's outwitting people in the markets. 

 

I don't think you understand the basics. The stock market goes up 10% a year on average. Buffett made money via company funds not his own.

 

Buying into top 100 shares and holding for 30 years will make anyone money. Nothing like gambling.

[save the frogs]

6 minutes ago, bignok said:

Buying into top 100 shares and holding for 30 years will make anyone money. Nothing like gambling.

ok, you talked me into it.

where do i sign up?

 

[bignok]

1 minute ago, save the frogs said:

ok, you talked me into it.

where do i sign up?

 

How old are you? If over 60yo its probably too late.

[Chicksaw]

4 minutes ago, bignok said:

The stock market goes up 10% a year on average.

It's actually 7% p/a inflation adjusted (talking US average over the last 50 years) except it (S&P 500) nearly doubled in 2020.

 

If you can read balance sheets, shareholder reports, analyze market data and have steely discipline (like ma man Warren B.) sure buy individual stocks. Or, if you are like me - market noob, nervous Nellie - stick with indexing. Else, if you believe in the greater fool theory (a perfectly good financial concept, look it up) and consider yourself a lesser fool, hey, help yourself to crypto.

 

 

[bignok]

3 minutes ago, Chicksaw said:

It's actually 7% p/a inflation adjusted (talking US average over the last 50 years) except it (S&P 500) nearly doubled in 2020.

 

If you can read balance sheets, shareholder reports, analyze market data and have steely discipline (like ma man Warren B.) sure buy individual stocks. Or, if you are like me - market noob, nervous Nellie - stick with indexing. Else, if you believe in the greater fool theory (a perfectly good financial concept, look it up) and consider yourself a lesser fool, hey, help yourself to crypto.

 

 

Etfs that track both Nasdaq and S&P500. Pick ones with low fees. Add money weekly. That is the easiest method. If someone quit smoking or gambling and added that saving to the fund each week it would add up to a lot after 20 years.

 

 

[Chicksaw]

4 minutes ago, bignok said:

Etfs that track both Nasdaq and S&P500. Pick ones with low fees. Add money weekly. That is the easiest method. If someone quit smoking or gambling and added that saving to the fund each week it would add up to a lot after 20 years.

 

 

Sir/madam, you is right. Incidentally, Fidelity has total market index funds, like one I am in, with supposedly zero fees (I am skeptical though, I suspect they take a c. or 2 off the $ when people aren't looking).

 

Another great thing about indexing is that once you're in you can roll over and go back to sleep and come back to it in a year's time or later. Because it's a long-term game and market data of 70 years or so says you'll win.

 

Crypto? This is the typical profile of a crypto investor.

 

[Sametboy2019]

Yeah give your money to the bank. It will be safe there????

[jollyhangmon]

 

[bignok]

 

[save the frogs]

On 5/17/2023 at 9:34 AM, bignok said:

How old are you? If over 60yo its probably too late.

I was being sarcastic. I don't want to gamble in the stock market.

After covid and as we enter "the great reset", you stock guys are still confidently pushing the "10% growth per year" sales pitch?

 

[gargamon]

On 5/17/2023 at 9:00 PM, Chicksaw said:

Sir/madam, you is right. Incidentally, Fidelity has total market index funds, like one I am in, with supposedly zero fees (I am skeptical though, I suspect they take a c. or 2 off the $ when people aren't looking).

 

Another great thing about indexing is that once you're in you can roll over and go back to sleep and come back to it in a year's time or later. Because it's a long-term game and market data of 70 years or so says you'll win.

 

Crypto? This is the typical profile of a crypto investor.

 

Remember “The Tortoise and the Hare“? Investing is like that. The Hare, of course, will be gambling investing in things like crypto, NFTs, or even individual stocks. The Tortoise will have his investments in things like index mutual funds or ETFs. I'm proud to have been a Tortoise since I began investing in the mid-80s. Averaging over 10% a year for almost 40 years, while spending only an hour or two every year dealing with my investments.

 

You do the math. I even stopped contributing when I retired in 2000. Sure there have been some down years, but in the long run those have been more than covered by the market rebounds in the subsequent years. Definitely can't say that with the Hare's investments. 

[bignok]

2 hours ago, save the frogs said:

I was being sarcastic. I don't want to gamble in the stock market.

After covid and as we enter "the great reset", you stock guys are still confidently pushing the "10% growth per year" sales pitch?

 

10% is average. Bitcoin is up 35% this year already

[bignok]

54 minutes ago, gargamon said:

Remember “The Tortoise and the Hare“? Investing is like that. The Hare, of course, will be gambling investing in things like crypto, NFTs, or even individual stocks. The Tortoise will have his investments in things like index mutual funds or ETFs. I'm proud to have been a Tortoise since I began investing in the mid-80s. Averaging over 10% a year for almost 40 years, while spending only an hour or two every year dealing with my investments.

 

You do the math. I even stopped contributing when I retired in 2000. Sure there have been some down years, but in the long run those have been more than covered by the market rebounds in the subsequent years. Definitely can't say that with the Hare's investments. 

The rabbit who made $1bn doesn't care anymore.

[gargamon]

31 minutes ago, bignok said:

The rabbit who made $1bn doesn't care anymore.

Until he loses it all when crypto crashes. Remember https://en.wikipedia.org/wiki/Sam_Bankman-Fried

[bignok]

54 minutes ago, gargamon said:

Until he loses it all when crypto crashes. Remember https://en.wikipedia.org/wiki/Sam_Bankman-Fried

Why would someone lose it all? Sell $900m worth keep the rest.

[Laughing Gravy]

On 5/17/2023 at 8:41 PM, Stocky said:

UK MPs have urged the government to treat retail investment in cryptocurrencies such as Bitcoin as a form of gambling. This has to be the most clear headed thinking on cryptocurrencies I've seen.

So there will be no 40% capital gains tax then, as there isn't any on gambling.  Yeah!

You sound like a spokesman for the banking cartel.

 

My awful bank have tried over the last 5 years to prevent me investing in a public traded company (Crypto exchange) for my own good of course (sic). They have told me blatantly they do not want me investing in the crypto. When i tell them i get anywhere between 5 and 16% yield on some coins and the banks don't even pass on their interests rates to customers, they do get upset. The state of fractional banking and the ponzi scheme called banking, which sadly most people just don't realise.

 

The banks created a system that you can't do without them. Trying booking a plane ticket or hotel without a debit/credit card. Now they have even told people they can only have 250 pounds a time each day of their own money, because people are getting scammed. Aren't the banks so caring and wonderful!????

 

If it wasn't for national insurance payments I would ditch my awful bank of 56 years that I have been with but I can't do the many things without them.

 

I do hope people wake up and reliase the banks are worse than the mafia and are the most powerful, political force around influencing policy that suits them.

 

 

 

 

 

 

[Heng]

Both.   Anyone (with sense) who rode the crypto wave put the bulk of their gains into plain vanilla, it's not like we're trying to secede from the Union.