Topic: Just because prices are high, doesn't mean that is a good investment. - page 5. (Read 761 times)

Well.... Bitcoin and Crypto currencies has now been around since 2009 (12 Years) ..... so if this was one of those "Dot Com" bubbles... it had to burst a long time ago. The pre-bubble period of the Dotcom bubble went from 1995 to 1997, the actual bubble took place from 1998 until March 2000 and the bubble-burst from March 2000 until the low-point of the NASDAQ score in October 2002... +/- 6 years.  
Source : https://www.grin.com/document/197166

Berkshire Hathaway are one of the most desired shares in the world.. because one of the richest men in America owns most of it and stupid people follow rich people's recipe... but they never get it right, because they do not get the insider information that these rich people get.  

An asset in general having a price doesn't automatically mean good investment, but it doesn't automatically mean it's a bad investment either. It's simply just that solely looking at the price itself is a really bad metric to make decisions upon.

indeed the main orientation about cryptocurrency is profit. until now there will be more people who view crypto as a tool for profit rather than as a currency. but that's the real fact and we have to be able to adapt to it. there will be more people who know about crypto, of course, more and more people will invest, and that means profits for early investors

The Greater Fool Theory is the idea that, during a market bubble, one can make money by buying overvalued assets and selling them for a profit later, because it will always be possible to find someone who is willing to pay a higher price.

Well, I would like to disagree.

In a perfectly efficient market, all information about a particular coin will be available to everyone in it.

This is in stark contrast to the actual information that most coins show, which is often very scant.

If crypto is an efficient market, then Bitconnect, OneCoin and all of those other scams wouldn't have got to the size they had.

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

However, there is the potential that high prices don't actually show genuine interest in a stock, but rather frenzied speculation on a commodity that has poor fundamentals.

A prime example of this happening was at the dot com bubble in the early 2000s.

What happened was companies that were, to be frank, pretty shit had managed to get multi-billion dollar evaluations because investors believed that the internet had fundamentally changed the business landscape forever.

As a result, people quit their jobs to trade full time, media stoked up the desires of getting rich and everyone believed that this gravy train will carry on rolling on and on forever.

Then the combination of increased interest rates, the majority of the aforementioned companies burning through cash and investors becoming aware of it all lead to the technology and by extension the entire economy to collapse while a few key members making big money.

This entire situation was the very exemplar of the title as companies that had billions of dollars turned out to be worthless at the end.

Be vigilant.

If you come when the price is high then obviously it's not the time to go in and place a price order. They grew because of the high level of investor confidence in the past. And you come at a time where it's impossible to show anything when looking at crypto prices already having foreign commodities and holding on so far. It shows that investing in crypto has provided huge benefits.