OT Bitcoin and quick wealth

[cnighbor1]

OT Bitcoin and quick wealth

We see people gain quick wealth every day, my comment is does that person have the knowledge, personality etc. to handle that sudden increase in wealth.

Everyone in this world is living their live based on their current income and current wealth. To change this life style is very difficult. And too keep there new life style from burning thru their new wealth requires a new knowledge of investing that is extremely difficult to gain
Charles

[joosttx]

We see it a lot in our hood. Most folks just take it in stride. I know several families that have had 8 figure payouts in the recent years and they buy a new house and go on a few more vacations. But I would not say they go hog wild.

[Blown Reek]

Pfft. If there's anything that Spike Nolan taught us, it's that "the money won't change us."

[Latestart]

A lot of lottery winners who are poor before winning end up broke.

Crypto has self-selection going on. To even know it was 'a thing' in time to have huge gains probably means you are college-educated with some background in tech. So doubt there are a lot of those folks being stupid and throwing cash around in strip clubs (repeatedly).

The other consideration is how everyone in your extended family is doing. A lot of athletes experience pressure from family to do wealth-reducing things like opening restaurants, night clubs and local retail.

So I guess I would say with crypto, I would expect less, but money amplifies any dumb habits people have before.

[Bentley]

I have seen similar "get rich" quick schemes before, this is just the later iteration. I believe Warren Buffett has been clear, you build wealth by steady investment.... clearly there are some who "hit the lottery" but I assure you that for everyone that has made a pile of cash... there are likely 10X that have lost some. I argue that its unclear how to value bitcoin, the way its mined it very "interesting" and how will it fair over the long run....

For me... invest in things that have innate value...

Just my perspective

Ray

[dbnm]

I am watching some Dogecoin FB groups and people are insane. They clearly have no idea what they are doing and are betting next's month rent in order to make a little bit of money.

[texbike]

I'm not exactly sure how he did it, but we have a 17 year-old neighbor kid that just purchased a new Tesla model Y this week with proceeds from some cryptocurrency-related investments. His parents are friends of ours and we haven't got the exact scoop on it yet. However, he's been playing around with Bitcoin and a few other cryptocurrencies like Dogecoin for the last couple of years and started out with $10K that his grandparents had given him. His parents are pretty proud of him for diving in and figuring things out on his own. Apparently, he's built up a nice crypto portfolio. It seems insane, but I'm impressed. I need to pay him to be my crypto mentor.

Texbike

[.RJ]

Originally Posted by Bentley

I have seen similar "get rich" quick schemes before, this is just the later iteration. I believe Warren Buffett has been clear, you build wealth by steady investment.... clearly there are some who "hit the lottery" but I assure you that for everyone that has made a pile of cash... there are likely 10X that have lost some. I argue that its unclear how to value bitcoin, the way its mined it very "interesting" and how will it fair over the long run....

Thats speculation, not investing.

At the start of the year I tossed some money into crypto and I've been pretty pleased at the returns - but it wasnt anything I couldnt lose in the long run if it all goes tits up. In retrospect I wish I'd gone in further seeing the gains, but, this will be a long term hold regardless, i'm either going to cash out big later or it will vanish into the wind.

Most of my long term $$ is wrapped up in 401k, index funds and house.

[Ozz]

"A fool and his money are lucky enough to get together in the first place.” - Gordon Gekko

[R3awak3n]

Originally Posted by texbike

I'm not exactly sure how he did it, but we have a 17 year-old neighbor kid that just purchased a new Tesla model Y this week with proceeds from some cryptocurrency-related investments. His parents are friends of ours and we haven't got the exact scoop on it yet. However, he's been playing around with Bitcoin and a few other cryptocurrencies like Dogecoin for the last couple of years and started out with $10K that his grandparents had given him. His parents are pretty proud of him for diving in and figuring things out on his own. Apparently, he's built up a nice crypto portfolio. It seems insane, but I'm impressed. I need to pay him to be my crypto mentor.

Texbike

lets put it this way.... if you had $1000 of doge in January of 2021, right now you would have over 100k so who knows where this kid put some of this 10k, he might have done some smart moves and be a millionaire.

[Clean39T]

Originally Posted by R3awak3n

lets put it this way.... if you had $1000 of doge in January of 2021, right now you would have over 100k so who knows where this kid put some of this 10k, he might have done some smart moves and be a millionaire.

And as soon as someone yells "fire" - the whole house of cards will fall.. A few will have profited, the many will have perished. Gotta love late-stage capitalism.

[rain dogs]

You have to have money to make money, so pontificating and mediating on what the rich do with their money if they get super rich is a pretty vulgar, especially in the now times.

Nobody who is struggling to pay rent or put food on the table during a pandemic is slamming down 5 grand that they don't even have into dogecoin when it was worth 0,05. Just more reflection of the wealth gap

Who cares. There are more important things to worry about. And if you don't wanna worry about those things, then thankfully, there are bikes.

[benb]

It feels like there's a giant Ponzi scheme aspect to it... we only hear about the people who get lucky.

I'm a software engineer, I've been aware of it so long I could have easily mined some bitcoins in the very beginning of it all basically no cost, it was easy enough back then I would not have had to put any money into computer hardware to do so.

I don't really know anyone who has made a ton of money on it but my brother (also an engineer) has some people in his circle who have.

It seems way past the early stage now.. if you buy in now you're buying into something extremely volatile & risky.

NFTs are seeming very similar.

[BRad704]

Originally Posted by .RJ

Thats speculation, not investing.

At the start of the year I tossed some money into crypto and I've been pretty pleased at the returns - but it wasnt anything I couldnt lose in the long run if it all goes tits up. In retrospect I wish I'd gone in further seeing the gains, but, this will be a long term hold regardless, i'm either going to cash out big later or it will vanish into the wind.

Most of my long term $$ is wrapped up in 401k, index funds and house.

I did the same thing.. I'm currently holding some DOGE, MANA and a couple of penny stocks in weed-based companies. the Crypto has gone through some insane ups and downs, and I'm up overall, but dang if I didn't sell off my original DOGE when it was still 0.05.

But like you mentioned... this is just a little play money. Nothing I would be upset about if it all evaporated tomorrow.

[benb]

Very important to consider whether the supply of any of these are capped if thinking short/long term.

The whole thing with bitcoin is the supply is capped, making mining become exponentially harder over time and ensuring no new coins can be created. Others like Doge don't have a cap and can go into infinite inflation over time.

I'm way behind on this at some point I should buy something.. and should be experimenting with/learning the software.