In the end, it concerns nothing but fried air.
Bitcoin, this crypto currency and all the other ‘ currencies ‘ that are and are being developed are all based on the principle of honesty.
Cheating becomes very simple.
I don’t trust those things.
But * if * you want to invest in it if necessary, do so with money, which does not hurt if you lose it.
The efficient market hypothesis says that the present value is the addition of all the people who invest in it or repelthem correctly.Wisdom of the crowd. In each stock price.
It is at least interesting to follow.
It’s not about what the mint IS worth , but what most people find it worth and will find.If that becomes more and more, the value goes up.
It’s about your quality of forecasting.If you do better than the market, you earn gigantic.Whether the market goes up, goes down, or stays the same, any prediction that is right, there you can buy a corresponding set of derivatives (options or futures) for which you actually walk in. If your voospelling is wrong, then you run blank. That though.
This money for each currency.Crypto or really, that doesn’t matter, the market work the same.
The big risk is if you are successful.Then you are going to make ever greater predictions and investments. And then the market will bring you back to the average. Stats do not lie.
All you deserve more if let’s say the global index of all branches (MSCI World Index), is a reward for actually run market risk.Well, that average yield, measured over decades, is quite high: 8 -10% or so. Much more than a savings account. But the world as a whole is down of course! So you are already at risk. But again never very long. Uncertainty….A synonym for risk, but risk is mathematically again exactly the same notion as chance.
Putting it on a savings account does not solve this: by global economic change, the euro (and the dollar, and the renminbi, whatever you want) can change in value.Which way? Whoever knows (not) can say it.
A currency index in all sorts of currencies?Including the Cryptos? Perhaps that would still be the most risk-poor if it existed. But not risk-less.
Return and risk belong together.Low risk is low efficiency. All the time.
There I am a bad counselor.Even when the value of Bitcoin, after a fabuous start, dropped to below 1 cent at one point, I did not walk in. A few years later of course huge bales!
Not necessarily. By definition, I do not really see a payment as an investment, but rather as insurance.Nevertheless, your choice of words is perfect: “Valuable” is subjective. If you have little confidence in the (very) long term stability of the EUR then it can be prudent, to insure your savings against inflation, through diversification in other means of payment, such as gold, silver, Bitcoin and possibly the future Libra .
Incidentally, I personally think that the FB share can be a “valuable” investment in the long term and then mainly because of the future advertising revenues that FB could generate.
Disclosure: I am Long FB
No not because it concerns a stablecoin.It will therefore keep a relatively constant value.