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    • No investor fascinates me like Warren Buffett. What I admire is his amazing ability to think independently, when everyone else is thinking another way. Hardly anyone can do it.

      Anyway, this morning he did an interview and according to Bloomberg, here's what he said about Bitcoin:

      • He’s no fan of cryptocurrencies and is confident that the run up in their value is fleeting.
      • "In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending. Now when it happens, or how or anything else, I don’t know. But I know this: If I could buy a five year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth.”

      Your thoughts.

    • I completely agree.

      Long-term, I don't think any of the current swath of cryptocoins has a compelling reason to have a high valuation. None of them are particularly useful for any practical (legal) purpose, although cryptocurrency bulls will deny this until they're blue in the face.

      Current cryptocurrency valuations are primarily a product of rampant speculation, hoarding, and illegal activity. Bitcoin is the only cryptocurrency that ever achieved anything like wide acceptance as currency, but its insanely low transaction rate and high fees have made it no longer useful for that.

      That said, it's hard to resist the gold rush. People who bought cryptocurrencies when they were cheap and are selling them now are making tons of money. The ROI, if you time it right, is absolutely insane. But the risk is also astronomical.

      Last year I started treating cryptocurrency as a (very) high-risk speculative investment. I invested a small amount of money that I could afford to lose each week, spread between Bitcoin, Ethereum, and Litecoin. When the average value of my original investments had doubled (or more in the case of Litecoin), I sold enough to recoup my costs plus taxes and left the rest invested. I'll continue to do this as (and if) my small weekly investments continue to rise in value.

      I fully expect the bottom to fall out eventually, but by investing only what I can stand to lose and by recovering my costs frequently, I hope to maximize my potential gain while minimizing risk. The tricky thing will be timing it right so that I can sell the majority of my holdings before the crash happens. But if I time it wrong, my overall losses will at least be minimal.

      Disclaimer: I'm not even remotely a financial expert, I have very little investing experience, and I'm basically just doing this for fun. I strongly recommend not investing in cryptocurrency.

    • I have no real idea of what I'm doing. But for a few months now I've been putting gambling money into cryptos. I have some silly penny altcoins, and a fair amount of ETH and LTC. I just trick myself and say that I still have these winnings from SmugTahoe many years ago:

    • Good question, value tied to the dollar. With the stock market dancing around, I was surprised to see this:

      The thinking is a few more investors are looking at crypto as a currency independent of nations, avoiding the dilemma some stocks have now wrt China. I dunno, it's too hard for me to predict, and I wonder who really knows.