Higgenbotham wrote: Wed Mar 03, 2021 1:53 pm
John wrote: Wed Mar 03, 2021 10:51 am
** 03-Mar-2021 World View: Bitcoin is different
Some people say, "Look! Bitcoin keeps going up! That proves how
powerful and wonderful bitcoin is! And it proves that bitcoin is here
to stay, even after everyone goes broke!"
Peter Lynch, who managed the Fidelity Magellan Fund for 13 years, returning an average
of 29 percent per year while the stock market essentially went nowhere, had this to say about price in One Up on Wall Street:
If I had to choose a great single fallacy of investing, it’s believing that when a stock’s price goes up, then you’ve made a good investment. People often take comfort when their recent purchase of something at $5 a share goes up to $6, as if that proves the wisdom of the purchase. Nothing could be further from the truth. Of course, if you sell quickly at the higher price, then you’ve made a fine profit, but most people don’t sell in these favorable circumstances. Instead they convince themselves that the higher price proves that the investment is worthwhile, and they hold on to the stock until the lower price convinces them the investment is no good. If it’s a choice, they hold on to the stock that’s risen from $10 to $12, and they get rid of the one that’s dropped from $10 to $8, while telling themselves that they have “kept the winner and dumped the loser.”
That’s just what might have happened back in 1981, when Zapata, an oil stock at the height of the energy boom, must have seemed far more pleasant to own than Ethyl Corp., a so-called “dog that got run over” because of the EPA ban on its main product—lead additives for gasoline. However, the “better” stock of these two went from $35 to $2, and you couldn’t have bailed that one out with the Big Dipper. Meanwhile Ethyl was getting great results from its specialty chemicals division, improved performance overseas, and rapid consistent growth from its insurance operation. Ethyl stock went from $2 to $32.
So when people say, “Look, in two months it’s up 20 percent, so I really picked a winner,” or “Terrible, in two months it’s down 20 percent, so I really picked a loser,” they’re confusing prices with prospects. Unless they are short-term traders who are looking for 20-percent gains, the short-term fanfare means absolutely nothing.
A stock’s going up or down after you buy it only tells you that there was somebody who was willing to pay more—or less—for the identical merchandise.
https://books.google.com/books?id=TYOdI ... 22&f=false
For the 20th time, no one who knows anything about BTC, or posts on this board, ever has stated that the reason to believe in or buy BTC even, is due to its price going up. The reason you buy and hold are because it has properties that are important and valuable, particularly for this time in history. And that its portability and network effect are phenomenal, the greatest
of all time (portability), in fact.
To say that BTC doesn't have underlying value is to fundamentally
not understand bitcoin. If you don't understand it (I've listed these reasons for months now, it's a waste
of time repeating them all again though I did some above) then you are
STILL are left to explain why billionaire investors are buying it. Wanna get laughed at? Go tell someone that Saylor, Musk, Tudor Jones, O'Leary, Druckenmiller - you name him - bought BTC for the hell
of it. Yeah, they did it just for fun. WTF are you guys serious?
If you really believe that, you are the delusional one, not others. Think about it. But ego and pride are big for people, not maturity and humility, which enable people to admit when they are incorrect. So we move on, then. Last chance.