Kaj_Sotala comments on Open Thread, April 15-30, 2013 - Less Wrong
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The standard advice is that normal people should never try to beat the market by picking any single investment, but rather put their money in index funds. The best publicly available information is already considered to be reflected in the current prices: if you recommend in buying a particular investment, that implies that you have knowledge that the best traders currently on the market do not have. As a friend commented:
So if you think that people should be buying Bitcoins, it's up to you to explain why the standard wisdom on investment is wrong in this case.
(For what it's worth, personally I do own Bitcoins, but I view it as a form of geek gambling, not investment. It's fun watching your coins lose 60% in value and go up 40% from that, all within a matter of a few days.)
Bitcoins are more like investing in a startup. The plausible scenarios to bitcoins netting you a return commensurate with the risk involve it disrupting several 100 billion+ markets (paypal, western union). I think investing in startups that have plausible paths towards such disruptions are worthy of a small portion of your portfolio.