Crypto do you invest in this?

[Hatton]

Hatton,
I remember asking you a few years ago (?2018) about whether you wanted to buy some bitcoin to relive the internet bubble and you said you didn't double bubble.
Seriously though, I can't understand crypto either.
If I had to guess, I'd say it's a ponzi rather than a bubble, but that's so odd, it's more likely that I just don't understand it.

It has hung around longer than I thought it would initially.

[FrancisBayes]

Morningstar had an article that even 1-2% exposure to crypto could add volatility to your portfolio. I do recurring buys of crypto with about 2% of savings (ie, cash I'm saving for retirement) and let the allocation float in my portfolio. Big reason for me is to not have FOMO and screw up the rest of my portfolio (a column about it will be published sometime in the first half of 2022.)

[Nysoz]

1% seems more sensible.
5% seems a bit crazy if you ask me.

Say you have 3M net worth. 5% is 150k.
Which I think a lot of people would feel if it vapourised.
I lost 5% of NW once in a speculative investment.
I thought I could afford it, until it went, and then owch!

It also depends on when you entered your position. If you put in 1% and it turned into 5% then losing that 5% is oddly easier to lose than if you put in 5%.

Investing psychology is quite a thing.

If my crypto position somehow went from 1% to 10% I’d probably just sit on it still rather than sell to rebalance.

I would maybe add more if I had the extra cash and it dropped to 0.5%. After adding this part I wouldn’t add more and just let what I’ve put in ride.

[bovie]

1% seems more sensible.
5% seems a bit crazy if you ask me.

Say you have 3M net worth. 5% is 150k.
Which I think a lot of people would feel if it vapourised.
I lost 5% of NW once in a speculative investment.
I thought I could afford it, until it went, and then owch!

5% is 5%. It’s all relative, and the “feeling” is proportional to NW.

But everyone has different feelings about their feelings.

[Doc Spouse]

We've had a couple of threads about this, but I'm pretty heavy into it. We're relatively early in my wife's career (second year as an attending) and we were reasonably well off before she started practicing due to my work, but our NW has exploded thanks to crypto. It's all a gamble but, as with most things, it's nice if you get in early enough.

As an aside, I've had family who also want to get involved after seeing our success which I've warned off with limited results. One family member just called me a week ago to tell me they've bought in one of my best-performing cryptos. Of course, this is right before it dropped 30 percent. I still think it's a good call over the long run and it's not like they overextended, but it just goes to show that you can get eaten alive even on the best of your picks.

We're still in the 20'sh percentile even after cashing the majority out and paying taxes. Most of that is in crypto that I believe in long-term; so there's little downside in my thinking. It's all magical internet money anyway and, if it went to zero, we'd still be much better off for having played the game.

[chocolatebear11]

We've had a couple of threads about this, but I'm pretty heavy into it. We're relatively early in my wife's career (second year as an attending) and we were reasonably well off before she started practicing due to my work, but our NW has exploded thanks to crypto. It's all a gamble but, as with most things, it's nice if you get in early enough.

As an aside, I've had family who also want to get involved after seeing our success which I've warned off with limited results. One family member just called me a week ago to tell me they've bought in one of my best-performing cryptos. Of course, this is right before it dropped 30 percent. I still think it's a good call over the long run and it's not like they overextended, but it just goes to show that you can get eaten alive even on the best of your picks.

We're still in the 20'sh percentile even after cashing the majority out and paying taxes. Most of that is in crypto that I believe in long-term; so there's little downside in my thinking. It's all magical internet money anyway and, if it went to zero, we'd still be much better off for having played the game.

Interested in hearing what long terms crypto Assets.

[wideopenspaces]

I have looked at BITO which is bitcoin futures but not bought it. I also opened an account at coinbase but have not funded it. I guess I do not understand it either. I fear I am in fact missing out.

I recently listened to a behind the bastards podcast on crypto. There's a lot of adult language on the show but I thought it was helpful in understanding how and why bitcoin came to be as well as the pitfalls associated with it( which are SO MANY! Did you know only a few bitcoin transactions can take place every second in the whole world? So it can't ever replace cash or credit cards and if you pay for something in bitcoin the payment may not go through? I don't know why a person or business would ever accept payments in bitcoin). For me personally, I know that I can't always easily invest according to my values but bitcoin mining is without a doubt terrible for the environment and I just can't support it for that reason alone. Plus I think it's dumb. We're giving you a prize (money) because you got a computer to solve a bunch of complex math problems? I seriously don't get the point of it.

[Doc Spouse]

Interested in hearing what long terms crypto Assets.

I've mentioned them before, but currently still holding GALA, ILV, SPS, and just recently got back into SOL since it's back down close to $100. It'll probably tank even farther (maybe even going back to $20 if the entire market crashes), but I'm okay with getting back in at $100 as I believe it's an easy 2x or more given enough time.

[StarTrekDoc]

crypto seems like day trading without an unified trading platform or safe repository of funds. That's what concerns me -- the 'bank' being robbed while speculating on speculation whether a long list of digits are worth more anything else. At least NFT has something attached to it -- silly ape.

[FunkDoc83]

crypto seems like day trading without an unified trading platform or safe repository of funds. That's what concerns me -- the 'bank' being robbed while speculating on speculation whether a long list of digits are worth more anything else. At least NFT has something attached to it -- silly ape.

I don't get the appeal of NFTs, but obviously others do. Maybe WCI could turn his first ever post into an NFT for posterity.

[nycEMMD]

Chocolatebear and I holding down the >40% fort

[xraygoggles]

Started at 5-10% in 2020, made large gains and ballooned up to 25-30%, sold my bags and now <5% allocation

[wideopenspaces]

crypto seems like day trading without an unified trading platform or safe repository of funds. That's what concerns me -- the 'bank' being robbed while speculating on speculation whether a long list of digits are worth more anything else. At least NFT has something attached to it -- silly ape.

Except that they don't. All it is is a space on the block chain. The image you "bought" can be moved and then you don't own anything but that space on the block chain which is then worthless ( or more worthless than even the nft was?). So I really don't know why anyone would buy that. The other issue is the nft market is ripe for scam artists posing as real artists selling their art as nft's. There isn't often much verification/regulation ( that's kind of the whole point of bitcoin) happening with bitcoin or nft's or any of this stuff which is why people keep getting all their bitcoin stolen from various exchanges or "banks". Just seems like a giant scam to me.

[StarTrekDoc]

I have no idea; hence 0% in this space. I just find those ape nfts funny to have any value. I'd rather like to see FarSide NFTs Still wouldn't even know to begin how/what value that has - like the 1st tweet nft. What's the value - the nft itself or that blockchain?

[MD & DPT]

0%. For me I feel like I need to have a good enough grasp on how it works to start investing in crypto. As my wife and are early into financial education and investing if makes sense for us to invest in more traditional vehicles as we are leaning about them and able. Maybe someday as we feel more established will try to learn more and possibly dabble in crypto for fun.