All Investors Seem To Be Running To THIS Asset Class

yes2crypto (49) 6 years ago

Yes, the thumbnail was icky and infected and therefore was worthy of getting attention. Good job.

Re: coinmarketcap and your point on “the gain following a drop has to be bigger” - I’m glad you pointed it out, and no, I don’t think it’s common sense. It makes sense once you explain it to people but I think most people don’t grasp that at first showing.

It’s like ESPP - not sure how many people are familiar with it but at some companies, there’s a benefit called an Employee Stock Purchase Plan. It allows you pre-allocate funds over time to buy stock at a discount, usually from the lower price between two far apart dates. One common example: 15% off the lower price of the stock on January 2nd or July 2nd.

Many people see that and think - “cool! 15% return on my money!”

No. It’s an 18% return on your money. Buying something at a 15% discount and immediately selling it is an 18% return not 15%.

(And that’s only if the stock went down in the period - if the stock went up then the return is higher since you’d get a discount on the lower price - the starting price - and then have stock that is worth more)

Same principle you’re describing about gain after a loss

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lee-beuzeval (44) 6 years ago

i thought the thumb nail yesterday was quite original actually, Chris! The only thing i look at on Coinmarketcap is the 24 hour volume and sometimes the jostling of ranking positions between BCH, EOS and XLM. I am now determined to be in the 21 million club after your analogy. Another great quality content video, top, top man Chris. Thanks very much !!!

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1 vote

neoicarus (51) 6 years ago

Thank you for mentioning The Ledger hardware wallet. It's important that people protect their private keys

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mcoinz79 (70) 6 years ago

Feels like a HUGE bull run in the making!

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alexanderhoehne (51) 6 years ago

Get paid to watch - good catch, but money is not the main incentive. The main incentive is your sane mind and your extraction of market developments as well as insights in trading parameters.
Yep. liquidity + trading volume are most important. They are the basis for market vitality.

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chekohler (70) 6 years ago

Im just about 60% of the way to owning a whole BTC and never thought it would happen, im slowly increasing it so be part of the 21 club its going to be a great day once I do.Id rather be the one that owns BTC and hodl than be out of the market completely lol

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sharpshot (65) 6 years ago

I do like seeing increased volume. I'd like to see one more plunge for BTC, still feels like there's too many people thinking it can't go much lower. Until the knife catchers are out, its hard to see where the bottom might be. I don't have a lot of spare cash and I don't mind how low it goes, as I can then buy more. I just hope that the markets do rebound with big volume at some point, to make a nice foundation for the next bull run.

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newageinv (70) 6 years ago

The move towards cash and equivalents is a correlation with the views of derisking and deleveraging in traditional financial markets which will have short term downstream impacts to cryptocurrencies given their pace in the asset class spectrum which still is more speculative. However, as the market stabilizes and improves adoption, I suspects the benefits of having a sovereign asset class will create demand once again and take from those cash/fiat allocations.

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noizydragon (38) 6 years ago

Volume is important, especially in traditional stock analysis. It should be noted that Crypto does not enjoy a "pure" aggregate volume like traditional stocks. Traditional stocks are measured in Number of Shares. Crypto volume is measured in $USD. This means that the $/Volume is skewed by price movement!!! Without access to the raw data of true crypto token volume in aggregate across all exchanges (including OTC), the next best means of clarifying the crypto volume picture would be to calculate the ratio of $/Volume to $/MarketCap. I argue that plotting this ratio would give a clearer picture of market liquidity.

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safetony (47) 6 years ago (edited)

Recommended reading in relation to your conspiracy theory ;) https://www.freemansperspective.com/ecb-feds-treating-bitcoin-differently/

Low prices does allow new investors in so there's always a silver lining like you said :)

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