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Learning, growing, Crypto and Opportunity cost?

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  • Learning, growing, Crypto and Opportunity cost?

    As I get a little older (just turned 49) I think about this more and more.

    It is a reason to be careful with life's most precious resource: Time.

    I enjoy reading about finance and trying to optimize (or at least do ok) financially so that I can be free to spend time doing things that add value.

    Freedom = what you get when you reach FI. Freedom to go fishing (as I did this morning), freedom to work part time (as I do now).

    Freedom to waste time drinking an afternoon coffee and reading about cardiac anesthesia (if if floats your boat, and hopefully makes you a little better doc).

    The point of this post is as follows: Recently listened to Jim's podcast on crypto with the bitcoin guy and recently read some of this article by FI physician (link below).

    Now here is the deal: In Jim's podcast he mentions the need to really try hard (spend time, some say 200 hours, reading/studying about BTC) to learn about BTC prior to seriously investing.

    (some say it does not take nearly this long to "understand".......but they are either much smarter than I or full of it).

    FI physician says this: "Please remember that this is not specific investment advice. Do not buy anything based on what you read here. You need to read another 40 hours of stuff before you are competent to purchase crypto. Seriously."

    I say. No.

    I'm not doing that. I only have so much time left on earth and this is not how I want to spend it. I guess I will miss out.

    I am not that smart, but there are other smart investors who don't understand crypto (Listen to Buffet and Munger from lasts month's BRK annual meeting).

    Am I crazy for just saying no thanks? I would rather buy more VTI and VEA or VXUS or even some boring CDs.

    I would rather spend that time doing my hospital credentialing, or working, or doing CME or doing something with family and friends or just going outside.

    Opportunity cost is real.

    You can do almost anything but not everything. (Sorry Paula......kinda ripped you off here)

    https://www.fiphysician.com/what-was...-bought-crytpo

  • #2
    Re: Buffett and Munger. Smart people are wrong all the time. I don't think they're really in a position where they want to (or need to) adapt to new technologies. We all know those older docs who still practice but the science/technology of medicine has passed them by. That's kind of how I view Buffett/Munger these days. Still incredibly smart but likely not incredibly up to date on new technology, etc.

    You don't need to spend 200 hours studying various cryptocurrencies but it wouldn't be the worst thing in the world to have a somewhat working knowledge of it.

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    • #3
      That's exactly my view. Is there a future in crypto? Is there a way to make money at it that doesn't involve being involved in a Ponzi? Maybe. But figuring that out would require a fair investment of my time, and I find more value in spending that time on other things. Index funds might not be the fastest way to get me to financial independence, but they're simple and free up my time and brainpower for other things, so I'm sticking with them.

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      • #4
        rfbr-cryptoassets.pdf (cfainstitute.org)

        That's a good starting point and will probably only take 30-60 minutes.

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        • #5
          Originally posted by CordMcNally View Post
          Re: Buffett and Munger. Smart people are wrong all the time. I don't think they're really in a position where they want to (or need to) adapt to new technologies. We all know those older docs who still practice but the science/technology of medicine has passed them by. That's kind of how I view Buffett/Munger these days. Still incredibly smart but likely not incredibly up to date on new technology, etc.
          Agreed. They are really old guys. Make me feel like a kid at 50ish

          I also think blockchain technology might end up being really important and viable.

          I think it is important technology but buying crypto seems similar to stock picking, but worse (bubblish......fair price?.....greater fool?)

          You could try to under stand it or you could just buy some lottery tickets.

          I don't want to pick single stocks.

          I will own crypto when it is incorporated into VTI.

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          • #6
            Originally posted by CordMcNally View Post
            rfbr-cryptoassets.pdf (cfainstitute.org)

            That's a good starting point and will probably only take 30-60 minutes.
            Dang it! Now you got me reading it again!!!!!!! Well, what the heck else do I have to do this afternoon!

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            • #7
              You do not need to spend time just to invest in something bc someone else is doing it. Whether its the stock market/index funds, real estate, bitcoin, gold, whatever, you do need some time reading about the one thing you will invest in. You already read about the market and are invested in it, why would you want more? That's my take- I know the market will take me to MY end goal without anything else, so why bother dabbling in the other stuff?

              If barry bonds never took steroids, he still wouldve been a hall of famer (see his career in pittsburg before his head swelled to double its size). If you dont need (pick any asset/bet/etc) to reach your goal, you dont have to invest in it. That was my whole argument in the original BTC thread when I had others shouting at me that I NEED to be investing in bitcoin.

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              • #8
                Originally posted by billy View Post
                You do not need to spend time just to invest in something bc someone else is doing it. Whether its the stock market/index funds, real estate, bitcoin, gold, whatever, you do need some time reading about the one thing you will invest in. You already read about the market and are invested in it, why would you want more? That's my take- I know the market will take me to MY end goal without anything else, so why bother dabbling in the other stuff?

                If barry bonds never took steroids, he still wouldve been a hall of famer (see his career in pittsburg before his head swelled to double its size). If you dont need (pick any asset/bet/etc) to reach your goal, you dont have to invest in it. That was my whole argument in the original BTC thread when I had others shouting at me that I NEED to be investing in bitcoin.
                Yes. Well said. Thanks Billy.

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                • #9
                  bitcoin and “crypto” are not the same. Jeff Ross said the same on Jim’s podcast multiple times, but Jim still seems not to have absorbed this. Even those that are bullish on alternative crypto assets do not really refute this.

                  The moniker “crypto-currency” has really created a barrier that a lot of people get stuck on when they approach this stuff. These things aren’t “currencies”

                  you don’t need to spend 40 hours or whatever trying to understand crypto. If you want to actually invest some of your precious time on something worthwhile forget crypto, go to “money.”

                  Then, you may come back and approach “cryptocurrencies” and some of the other assets that you hold in a different way.

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                  • #10
                    It really comes down to how unpleasant you find learning about this stuff. I think learning new things is generally interesting and I enjoy doing it. I don't know much about crypto, what I do read is interesting. I almost don't understand how someone wouldn't find it interesting. I wouldn't feel like it was a waste of time if I spent 200hrs reading about crypto and never invested in it at all.

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                    • #11
                      I found that reading this article gave me a much better understanding of crypto then many people who have invested in it:

                      https://www.currentaffairs.org/2022/...die-in-a-fire/

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                      • #12
                        Originally posted by gvs.psych View Post
                        I found that reading this article gave me a much better understanding of crypto then many people who have invested in it:

                        https://www.currentaffairs.org/2022/...die-in-a-fire/
                        I would probably recommend learning the facts before one veers off into opinion pieces, regardless if it’s for or against.

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                        • #13
                          Originally posted by Tangler View Post
                          I am not that smart, but there are other smart investors who don't understand crypto (Listen to Buffet and Munger from lasts month's BRK annual meeting).
                          Buffet and Munger believe they do understand it, and that it is worthless. Based on Peter Thiel's rant (at the 2022 Bitcoin conference in Miami), Jamie Dimon and Larry Fink are simpatico.

                          There are millions of potential investments. Why target Bitcoin or other crypto? You'd be better off studying the equity and debt of healthcare companies, i.e., investments where you might have some semblance of an edge.


                          Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried (many) bags for a lovely and gracious 59 yo Cyd Charisse. (RIP) Hosted epic company parties after Friday night rehearsals.

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                          • #14
                            Go wholesale, cut out the middleman, be the manufacturer and hold.

                            Gonna be a Bitcoin Miner. What could go wrong?


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                            • #15
                              BTC has been around for 11 years. I haven't invested in it yet. I seem to have done fine without it. So hard for me to tell someone else learning about it is mandatory. I think it's interesting. I've certainly spent some time with it. 1000 hours? No.
                              Helping those who wear the white coat get a fair shake on Wall Street since 2011

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