Posted in Cryptos on August 12th, 2015
The following case came from a private article we wrote in an instructional course from the past during our A.P. days. We’ve reposted some of the material here, while removing many of the arguments as they may or may not hold true. Note that the time context is different: we would not write this content after 2015, as it was only appropriate for the time in which it was written. [REMOVED] in the article indicates points, arguments or statements that may or may not still be valid or points that were for students eyes only. We do not reward later readers with these points.
With bitcoin falling below $300 this year, one could argue that a person who has a decent amount of savings should experiment with bitcoin considering the low-risk nature of bitcoin. A couple of years ago, we saw mockery against bitcoin while it hovered in the $5-8 range, and wondered why anyone would mock something like bitcoin instead of just grabbing $100 worth of bitcoin only as an experiment. Even if a person didn’t want to risk $100, they could have gone to a bitcoin meetup and received $1 worth of free bitcoins (and in those days, sometimes people gave away an entire bitcoin!). This holds true now – people with no money can always go to a bitcoin meetup and find someone willing to give a free bitcoin away.
You may also consider taking a risk of 1% of your net worth and putting that into bitcoin. To keep this simple, suppose that you have $100,000; get $1,000 worth of bitcoin. Provided that you accept that you’ve lost this money forever, you can’t lose by doing this. If you think this is absurd, consider the following points:
Still, let’s remind students that $1 of bitcoin, which many participants at a bitcoin meetup will be willing to give away, is a little over 0.003 bitcoins. That doesn’t sound like much, but when you combine it with a few other ways to get a free portion of a bitcoin (like signing up for some exchanges), it costs no money to get. With this route, keep in mind the following three points:
The following article covers a token or element in the cryptosphere. The cryptosphere is new and exciting, but changes rapidly and often in ways that do not benefit users. By the time this article is published, changes may have already occurred. Most tokens in the cryptosphere are complete scams that are get-rich-quick-schemes for insiders. Often, we cannot know this beforehand and only later discover this. A person should only trade with money that they’re willing to lose because losses are guaranteed. If you choose to participate in purchasing a token in the cryptosphere, you should do so with the full expectation of a loss and you should also expect it to change in a manner that does not benefit you.There are very few good ideas in the cryptosphere. Finally, by reading this post, you agree that you’ve read our disclosure. This article reflects the opinions of the author and is for entertainment purposes only. It is not intended to be investment advice and FinTekNeeks are not registered investment advisers. Please consult a professional financial adviser when investing.