... For dumb people.
Around this time last year I posted about bitcoin and touched briefly on other cryptocurrencies here , asking the question “Is bitcoin a fraud that will blow up?” and looking at the simple returns (over a long period of time) it seems that although it is not a fraud it did blow up in the sense that the return on investment was far outpaced by any other investment strategy. I’m not talking about the people at the very top of the bitcoin pyramid that have probably made a ton of money and who are probably to some extent influencing prices whether knowingly or unknowingly or the people that continuously make money by doing consistent transactions, those who buy and sell at the right time in order to maximize returns – these people do exist and are probably doing pretty well for themselves, but others weren’t so lucky. Others brought at the peak or close to, as people online championed them to do so as a sort of “get rich quick scheme”, these people probably thought that they could sit with it a lot like an index fun or shares and eventually see a return.
Now before you say that didn’t happen to anyone, I actually know someone who tried this and is now ~$20,000 AUD in the red, but he was a dickhead so I don’t care, anyway the point is I’m sure a lot more people are in that boat. Bitcoin was up around $25,000 AUD at its peak now its hovering around $9000 AUD which is a huge drop if you brought it around the peak which unfortunately a lot of people did, now they hold huge losses.
Its unfortunate to point out that buying good shares, leaving it in a bank account that has a low interest return or hell even fall asleep for a year, you would be better off than buying bitcoin at its peak. Now I’m not going to say that bitcoin is terrible and you shouldn’t buy it, I’m saying that people like that dickhead that I know should do more research and that on a long term basis, bitcoin was not a good investment unless you were watching constantly or you were at the top. The next question is will bitcoin hit $500,000 like all the bitcoin fan boys thought would happen, like John McAfee? Another question is, are any other cryptocurrencies a good investment? I’m going to stop right there because I already know I’m over my head, because this is way more complicated than I made it out to be and people will be angry with me.