Current Events > Here's what a conservative friend said about Bitcoin. Is he right?

(+) Yeah! (+)

"I saw an article yesterday that pointed out if you had spent your $1,400 stimulus check from April 2020 on Bitcoin... Today those Bitcoins would be worth $11,000.
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Either way, its not too late to invest in crypto. I have a feeling as long as the current govt keeps printing and spending like they've been, the value of Bitcoin will keep rising. The dollar is obviously dropping so saving it seems futile."

Or Libertarian, I don't know. He's a huge Ron Paul fanatic.

Im not an expert so I cant tell you exactly but I do know someone who spent between $20k-40k (I forget precisely) a couple years ago and its now apparently worth millions.

But yeah libertarians would love this, its basically a hyper pyramid scheme. The trick for my friend is to not get caught holding the bag.

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Cocytus posted...

"I saw an article yesterday that pointed out if you had spent your $1,400 stimulus check from April 2020 on Bitcoin... Today those Bitcoins would be worth $11,000.
...
Either way, its not too late to invest in crypto. I have a feeling as long as the current govt keeps printing and spending like they've been, the value of Bitcoin will keep rising. The dollar is obviously dropping so saving it seems futile."

I don't see any lies except that the stimulus was $1,200. I just did my own recalculation and got $10,969 so it checks out.

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Yes ETH and BTC have both gone up 10x since last year

People made a huge deal about BTC hitting $10k. Many thought it'd never happen, that growth made many people rich. It's currently $64k

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Once I get money what should I do to invest in stuff like this? money = stress but having no meds = big stress

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My 100 in BTC from 2016 is $2200 today

Wish I invested more but it's ok

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tremain07 posted...

Once I get money what should I do to invest in stuff like this? money = stress but having no meds = big stress

It's extremely risky, you should only invest what you're willing to lose into crypto

But you can invest in stocks called ETFs (like the SP500) that arent risky at all and have huge (for normal stocks) returns. The SPY stock, which is a mix of 500 successful companies, has grown 9% per year for 100 years. That's an amazing place to keep your money, banks give less than 1% return

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Not gonna bother with the math, but he's right in that the dollar is devaluing rapidly. I haven't been keeping much cash either.

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Njolk posted...

It's extremely risky, you should only invest what you're willing to lose into crypto

But you can invest in stocks called ETFs (like the SP500) that arent risky at all and have huge (for normal stocks) returns. The SPY stock, which is a mix of 500 successful companies, has grown 9% per year for 100 years. That's an amazing place to keep your money, banks give less than 1% return

I was thinking of a spare 100 dollars for the crypto should it turn successful use a little from that to go into the ETFs but I think it might be too low.

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tremain07 posted...

I was thinking of a spare 100 dollars for the crypto should it turn successful use a little from that to go into the ETFs but I think it might be too low.

Yeah that is too little for a stock, you'd need a few grand for it to be worth it

But yes I put a random $100 into a crypto someone talked about here and it's now $500 a year later

Big warning: Bitcoin is currently on a huge peak at an all time high, and you shouldn't buy until it dips back down. "Buy when everyone else is selling" is the saying

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Njolk posted...

and you shouldn't buy until it dips back down

I disagree with this. Trying to time the market leads to madness. If you think the price is high now, dollar cost averaging is the way to go.

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Crono99 posted...

If you dont do that then you panic sell at a loss as soon as it dips, instead of just leaving it there and selling at a profit when it goes back up

There's a larger than usual chance it never goes back up...

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Njolk posted...

It's extremely risky, you should only invest what you're willing to lose into crypto

See, that's the problem, $0 freaking dollars =\

All very insightful, guys.

Spending your stimulus on BTC would have been profitable but very inefficient.

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Njolk posted...

Yeah that is too little for a stock, you'd need a few grand for it to be worth it

But yes I put a random $100 into a crypto someone talked about here and it's now $500 a year later

Big warning: Bitcoin is currently on a huge peak at an all time high, and you shouldn't buy until it dips back down. "Buy when everyone else is selling" is the saying

crypto it is, because i don't have a grand to spend

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Man, this feels like gambling I'm a shit gambler

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The really awkward thing about crypto that I haven't seen discussed very much is how dictators and other oppressive regimes are likely using it to bypass economic sanctions and that the Bitcoin bubble is directly or indirectly funneling money into their pockets.

https://www.forbes.com/sites/petertchir/2019/02/10/bitcoin-wont-rally-until-dictators-stop-selling/amp/
https://www.bloomberg.com/news/articles/2021-09-27/crypto-expert-pleads-guilty-to-violating-north-korea-sanctions
https://www.axios.com/how-cryptocurrencies-used-to-evade-sanctions-b752de25-0c2e-42f1-a04c-33aad930c6ed.html


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EndOfDiscOne posted...

I don't see any lies except that the stimulus was $1,200. I just did my own recalculation and got $10,969 so it checks out.

the lie is that BTC price has anything to do with inflation

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Squall28 posted...

Not gonna bother with the math, but he's right in that the dollar is devaluing rapidly.

CPI is following a 5% annual rate; that's not especially rapid

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People have been saying the same or atleast similar things about gold for the past 100 years.

You'd be better served to stick to assets like stocks and real estate imo.

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Mr Hangman posted...

You can still make money on a bubble, maybe a lot, but you can also lose everything.

And that's when desperate thoughts take over...