Investor takes out $127,000 loan to buy cryptocurrency, loses 85 per cent

Discussion in 'Digital Currencies' started by ozcopper, Aug 14, 2018.

  1. GoldSilverPlatinum

    GoldSilverPlatinum Member

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    Only one thing comes to mind...…….

     
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  2. alor

    alor Well-Known Member Silver Stacker

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    un-wise gambler, bet on the long side of the bank

    wise gambler bet on the short side of the exchange :)
     
  3. goldpelican

    goldpelican Administrator Staff Member

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    Wonder how many times he's been told to just "hodl".
     
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  4. SlyGuy

    SlyGuy Active Member

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    You can learn a lot from this "market." The main take homes are not to invest in something you don't understand, not to invest with borrowed money, and to be highly suspect of financial and tech (BitCoin was both) investments not attached to any real physical assets (real estate, goods, etc). A ton of people have gambled on crypto, many used credit to do that, and those defaults will hurt lender side as well as the individuals who it bankrupts or cripples.

    This BitCoin bubble reminds me of the medical marijuana stocks five or six years ago: I see tons of people investing in something they don't even understand (since nobody fully understands BitCoin). With the weed mania, they were chasing ticker names with no regard for business models, assets of the companies, or P/E ratios. If it was associated with mary jane, though, its graph was going up exponentially. That was a shorter lived mania, but it's the most recent equities or investing bubble I can recall. Most of the major stock trading sites blocked or restricted those ticker symbols after awhile (when their shares were $25 or $50+ yet logical estimates of real worth were less than $1), and that was the beginning of the end.

    An even funnier mini-mania example was the "sports stock market" called OneSeason.com (which lasted about one season... less than one year, lol). I actually jumped into that one and made $1k or so since I enjoy sports and knew it would catch a lot of fish in the USA, but I was fully expecting my payout check to bounce - yet it didn't. The only big winners on that unsubstantiated "market" were the guys who designed the website and its marketing and their college buddies, who got all of the early IPO releases before the masses had heard of the concept and jumped onto the site. Like any mania, everyone holding the "shares" of nothing was left clutching at straws when the new influx of buyers leveled off.

    ...I could never get myself to give BitCoin more than a passing glance. Between the fact that nobody understands how or who controls the mining math problems and supply process (making it a fiat currency worse than the majority of past ones)... and the simple logic that "you don't get something for nothing," I didn't really need to dig any deeper. It is too bad so many people learned the hard way on this, but kudos to those early gamblers who saw a major mania brewing and capitalized on the public's greed.

    With any worthless asset, you can potentially make money jumping in and jumping out, but you don't want to be left holding the shares of nothing when the gullible buyers run out. Usually, once you've heard of the "market" for trending stuff like this, it's nearly - or already - too late.
     
    Last edited: Sep 13, 2018
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  5. GF

    GF Well-Known Member Silver Stacker

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    I do all the time....easy points
     
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  6. bubblebobble2

    bubblebobble2 Well-Known Member Silver Stacker

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    Ditto, used me 55-days interest-free and flogged $20K silver on its way up... before 55 day pass-by, offload and sweeeet!
     
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  7. alor

    alor Well-Known Member Silver Stacker

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  8. inmizu

    inmizu Active Member

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    ..I could never get myself to give BitCoin more than a passing glance. Between the fact that nobody understands how or who controls the mining math problems and supply process (making it a fiat currency worse than the majority of past ones)... and the simple logic that "you don't get something for nothing," I didn't really need to dig any deeper. It is too bad so many people learned the hard way on this, but kudos to those early gamblers who saw a major mania brewing and capitalized on the public's greed.

    With any worthless asset, you can potentially make money jumping in and jumping out, but you don't want to be left holding the shares of nothing when the gullible buyers run out. Usually, once you've heard of the "market" for trending stuff like this, it's nearly - or already - too late.



    'the fact that nobody understands how or who controls the mining math problems and supply process' -- actually, a bunch of very clever people understand this stuff very well

    'making [Bitcoin] a fiat currency worse than the majority of past ones' -- actually, this statement isn't even eensy weensy itsy bitsy true

    'but you don't want to be left holding the shares of nothing when the gullible buyers run out' -- I remember this swipe at cryptos from 2013: 'Bitcoin will crash to nothing any second now!!'

    'It's about to happen!!'

    Any second . . .

    But here we are in 2020, with banks and rich guys invested big -- -- and people are still rubbishing Bitcoin with the 'left holding the shares' argument!
     
  9. Glenn.b88

    Glenn.b88 New Member

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    You couldn't be more right ))) But, like my father said: "I prefer to buy a Lotto ticket rather than bet on any cryptocurrency".
     
  10. LiverBird

    LiverBird Well-Known Member Silver Stacker

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    I think you need to re-read/fully read his post mate ;)
     
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  11. Timmy88

    Timmy88 Active Member Silver Stacker

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    What a fantastic summary of bitcoin. I literally thought you were reading my mind, its everything I ever thought of it in a nut shell.

    Timmy
     
  12. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Correct me if I’m wrong but I think you misunderstood @inmizu’s post.

    Most of that is the opinion of a member who had no idea what he was talking about.

    @inmizu hasn't learnt to quote yet,
     
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  13. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    https://nexo.io/blog/dispatch-5-are...832&l=26_HTML&u=1140273&mid=500009431&jb=3284

    https://squareup.com/au/en/about/in...d7-8277-623c96f3f96c?country_redirection=true
     
  14. inmizu

    inmizu Active Member

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    Thanks, mmm ....shiney, I did indeed leave the inverted commas off the quote. And dang, for some reason, I can't get the 'Quote' thingey to work.

    [Edit: and today's Old Guy Insight: it seems that studying how the emojis on the History Site has become more important than studying history itself.]
     
    Last edited: Oct 10, 2020
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  15. inmizu

    inmizu Active Member

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    " . . . MicroStrategy moved $425M of its cash reserves into Bitcoin last month . . . "

    I'd sure like to sit and watch this done!

    What is their 'OPSEC'? -- their operational security?
     
  16. Glenn.b88

    Glenn.b88 New Member

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    Yes it is, an important thing if you want to secure your crypto holdings. I know that investments in BTC are too risky, bitcoin could drop any time. But, I'm going to try my luck. I will start slow, I have already one loan with these guys https://paydayinusa.com/states/payday-loans-in-nebraska surprisingly - no need for proof of income, good credit score is not required, no third party for extra fees, almost instant approval in 24 hours. Don't criticize me, I just wanted to avoid all the hassles from banks. So it's very quick and convenient.
     

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