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BitCoin falling like a Dotcom

joeken24

By joeken24
in The Tailgate

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Corcaigh

Corcaigh

Posted
Posted (edited)
32 minutes ago, tshile said:

Um. Sure. 
 


My point was that if someone thinks anything has long-term upside then ‘jumping in’, I.e. reacting to a dip is less optimal than DCA.

 

Will they “jump in” if it drops further? And again, and again. They should if they believe in the long-term price.  And does how much they jump in also depend on emotion?

 

 

Edited by Corcaigh
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bearrock

bearrock

Posted
Posted

I don't think dollar cost averaging is meant to be applied post investment to recoup loses.  It's for either people who have a consistent investment budget for an indefinite or very long period (like a retirement account) or to be employed at the beginning of the investment, where you divvy up the investment budget and periodically invest in predetermined fractions to reduce the effect of market volatility (which also is for investments where you anticipate a growth long term rather than an eventual crash).

 

Now I guess it's a version of DCA if you initially decided to invest a 10K and then decided I'm gonna increase my budget to another 10K, but I'm going to invest the second 10K by DCA.  But at some point, it can look a lot like a double bet strategy, which doesn't really mitigate the risk of investment.

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Corcaigh

Corcaigh

Posted
Posted

DCA is simply a way of taking the emotion out.

 

Reacting to a 10% dip hoping for a short-term return … you might get lucky. But it might keep dropping and staying low for multiple years as it did in 2017.

 

As with the stock market, everyone is an expert and their judgement is correct when prices are going up. 😀

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tshile

tshile

Posted
Posted
2 hours ago, Corcaigh said:


My point was that if someone thinks anything has long-term upside then ‘jumping in’, I.e. reacting to a dip is less optimal than DCA.

 

Will they “jump in” if it drops further? And again, and again. They should if they believe in the long-term price.  And does how much they jump in also depend on emotion?

 

 

Yeah I wasn’t being flippant. I was agreeing with you :)

 

I was just explaining the opinion on it being an opportunity. And yes - If you are on the “eth is going to 10k” bandwagon then you should be buying at all the dips and falling below 4k was a dip and an opportunity. 
 

if you’re taking a more traditional investment approach DCA and avoiding market timing is the way to go. 
 

But that seems to represent a very small part of the (vocal) crypto people at the moment. They’re more into watching for breakouts, holding a view in a specific top in a specific time frame, and buying the dips on the way up to that top. 

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tshile

tshile

Posted
Posted
1 hour ago, bearrock said:

I don't think dollar cost averaging is meant to be applied post investment to recoup loses.  It's for either people who have a consistent investment budget for an indefinite or very long period (like a retirement account) or to be employed at the beginning of the investment, where you divvy up the investment budget and periodically invest in predetermined fractions to reduce the effect of market volatility (which also is for investments where you anticipate a growth long term rather than an eventual crash).

 

Now I guess it's a version of DCA if you initially decided to invest a 10K and then decided I'm gonna increase my budget to another 10K, but I'm going to invest the second 10K by DCA.  But at some point, it can look a lot like a double bet strategy, which doesn't really mitigate the risk of investment.


I think if you’re going to take a strictly investment approach then yeah, you’re right. 
 

but that’s not really what the crypto market is. Because in many ways a traditional investment approach would demand you not even get involved.... 

 

this is more akin to gambling than investment. I realize there are true believers that do absolutely think this is 100% investment in an unavoidable future, and look at the rest of us as though we just don’t “get it”. But for most people this is an interesting gambling adventure to see what happens. 
 

Ultimately your current holdings are measured by your average price per unit that you’re holding. And if you jumped in on doge coin too late and didn’t exit when you should, you really only have a limited set of options:

- hold and hope somehow someway in the future your .60-.70 price point gets exceeded. If that’s what you’re doing I’d be curious what it is you think it’s going to go to, and when, to justify money sitting in what is currently a loser when so many others are moving by 5-20% daily..... this is a silly strategy even if we don’t consider the silliness of Doge coin to begin with...

 

- dump your doge coin, eat the loss, move it into something else that’s moving and real. Sucks to eat the loss but hey sunk cost fallacy exists for a reason. Put your money in things that are moving. Don’t just hold on to your losing investment in hopes it somehow turns around. Especially when it’s a ****ing meme coin and you missed the boat

 

- take advantage of the swings. Buy more at the bottom of the dips. Lower your price point on the investment, so it doesn’t have to enter .60-.70 range just to break even. Someone who bought those dips after SNL could have easily recouped their losses and moved on. Would I recommend you do this with your savings or retirement? No. But you gambled and got burned and this is the easy way out and it’s what the people gambling do. There are similar strategies in casino games. Is it fool proof? No. But, if you follow doge you see the same pattern over and over and over....

 

 

maybe we’re ****izing the traditional idea of dollar cost averaging but it’s the truth - drop your average price point on your investment so you can lower your loss. 
 

 

I mean... we’re talking about doge coin. The entire thing is a joke. There was no true investment strategy here. It was a gamble. So treat it like a gamble and work your way out of it. 

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DCSaints_fan

DCSaints_fan

Posted
Posted (edited)

Anyone get in on SHIB (Shiba Inu) ? 😀

 

https://www.theblockcrypto.com/post/104439/shiba-inu-token-holder-turns-17-into-5-9-million

 

Quote

This growth has put some early token holders into the money. One account purchased 200 billion tokens for just $17 in October 2020. Those tokens are now worth $6.5 million on paper, if you multiple by the number of tokens by the price. But, with current liquidity, they could actually be cashed out through decentralized exchange Uniswap for $5.9 million.

 

Edited by DCSaints_fan
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mammajamma

mammajamma

Posted
Posted (edited)
46 minutes ago, skinsfan_1215 said:

So uh, no chance a small startup car company’s policies on Bitcoin would have a dramatic impact on its price, right? 

the cognitive dissonance for those that are both crypto nerds & elon stans is going to be very fun to watch

 

already reading through the nuclear meltdown on twitter

Edited by mammajamma
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bearrock

bearrock

Posted
Posted

Bitcoin in its current implementation was always going to have too many technical challenges to be used as a currency.  Other crytocurrencies have tried to address this but in terms having a viable future as a currency, bitcoin is seriously antiquated technology.

 

Also, the notion that Tesla was serious about using such a volatile asset for transaction is kind of silly.  Musk is just engaging in a global pump and dump.

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Hersh

Hersh

Posted
Posted
4 minutes ago, bearrock said:

Bitcoin in its current implementation was always going to have too many technical challenges to be used as a currency.  Other crytocurrencies have tried to address this but in terms having a viable future as a currency, bitcoin is seriously antiquated technology.

 

Also, the notion that Tesla was serious about using such a volatile asset for transaction is kind of silly.  Musk is just engaging in a global pump and dump.

 

I also think people had a chat with him about the stock price and the general reputation/conflict of bitcoin with his companies. 

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DCSaints_fan

DCSaints_fan

Posted
Posted (edited)
26 minutes ago, Springfield said:

What’s the carbon footprint of Dogecoin?

Dogecoin is proof-of-work based and relies on mining, therefore it does use significant  compute power.  However since the block time is 1 minute compared to Bitcoins 10 it stands to reason it uses 1/10th the power of Bitcoin

Edited by DCSaints_fan
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