Allen
Hotshot
Joined: Oct 1999
Posts: 8,854
Ohio USA
Since Bitcoins and their like are causing inflated GPU prices for we gamers, I think its interesting to note that most think Bitcoins and their like are very poor long term investments -- just like the Tulip Bulb investment mania 400 years ago.
When I did a detailed study of stock market history and investing (a couple decades ago), I read that at the height of the "Tulip Bubble" a farmer gave away his land for "one" tulip bulb. Sounds like "betting the farm" -- story said he lost the bet. That also sounds like paying $7000 for Bitcoins that originally cost $2. I'm not a Bitcoin expert, so I may misunderstand how good a deal that is.
From the Wall Street Journal:
Quote
Bitcoin: The World’s Most Dramatic Bubble Ever?
Investment manias throughout the centuries have ranged from tulips to tech stocks to housing; is bitcoin different?
..The first known financial bubble is thought to have taken place in the 17th century, when Dutch tulip prices had a spectacular rise and fall. Recently, investment manias include the dot-com bubble of the late 1990s and the housing boom and bust in the 2000s, which paved the way for the 2008 global financial crisis.
Now, the debate centers on bitcoin. The digital currency topped $7,000 this month for the first time, a gain of more than 600% so far this year. Three years ago, bitcoin was at $300. Six years ago, it was at $2...
Again, I'm no Cryptocurrency expert. So, maybe Bitcoin investing isn't as misguided as it sounds. Or, maybe, the smart investors are just waiting to jump off the wagon and collect their profits -- at the expense of the folks holding the bags of bitcoins.
