Money Lost (figuratively speaking)
Money Lost (figuratively speaking)
I was talking to my brother the other day and he was mentioning something about a relative of ours that had suggested he put some of his new found inheritance money (back in 2017) into Crypto. Both he and I invest in more traditional ways and this was something that would never be considered. Well... I decided to look up Bitcoin prices and if he would have invested $100k back in 2017 he'd now have $9m. That's just outrageous.
Re: Money Lost (figuratively speaking)
It is not "lost" if he didn't "find" it, hehe. FoMo (fear of missing out) has caused more loses than wins 
I don't know people that bought at the bottom and sold at the top and just stopped, whether it was stocks, crypto, or whatever.
Yes, wider adoption of crypto has caused prices to skyrocket. Most people (me included) wouldn't hold it that long and survive the wild up-down swings though, especially if it is meaningful amount of money involved. If you bought back then, and saw your initial investment increase 3-4 times you would want to lock in profits and reduce risk, for example.
Since last year, there are many ETFs that allow even institutional money to get in crypto. IBIT, one of the largest Bitcoin ETFs has like 70 Billion AUM. Largest banks now advise people put up to 5% of their portfolio in crypto assets, blockchain technology will be used for cross-border money transfers, digital variants of currencies is being developed, KYC and taxation is being ironed out, laws and new regulations are constantly being passed, there is even talk of putting the stock market on blockchain technology.
Not all crypto is created equal though. Bitcoin's appeal is that it is set amount, and can be used as store of value to counter inflation, there is no Fed to just print more IOUs and dilute your stash, it is easier to store and move than precious metals. Ethereum is not capped, but its blockchain is used for other apps/tokens, DeFi, etc., its utility is the appeal.
I don't know people that bought at the bottom and sold at the top and just stopped, whether it was stocks, crypto, or whatever.Yes, wider adoption of crypto has caused prices to skyrocket. Most people (me included) wouldn't hold it that long and survive the wild up-down swings though, especially if it is meaningful amount of money involved. If you bought back then, and saw your initial investment increase 3-4 times you would want to lock in profits and reduce risk, for example.
Since last year, there are many ETFs that allow even institutional money to get in crypto. IBIT, one of the largest Bitcoin ETFs has like 70 Billion AUM. Largest banks now advise people put up to 5% of their portfolio in crypto assets, blockchain technology will be used for cross-border money transfers, digital variants of currencies is being developed, KYC and taxation is being ironed out, laws and new regulations are constantly being passed, there is even talk of putting the stock market on blockchain technology.
Not all crypto is created equal though. Bitcoin's appeal is that it is set amount, and can be used as store of value to counter inflation, there is no Fed to just print more IOUs and dilute your stash, it is easier to store and move than precious metals. Ethereum is not capped, but its blockchain is used for other apps/tokens, DeFi, etc., its utility is the appeal.