Lesson for Diversification: The Rothschilds Story

carlfebz2

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Quote from: Samarkand on January 09, 2018, 05:24:42 PM

Quote from: iamTom123 on December 28, 2017, 11:38:19 PM

...

Now, we are also facing some similarities in the world of cryptocurrency. Nobody can be certain of what can be months from now. So the best solution if one will not get out from this market is to diversify or put one's eggs in many baskets. However, in diversifying there are still some risks we have to minimize. We have to make sure that the baskets where we are putting our eggs will not be evaporating by the time we feel we need to harvest the investment. In other words, choose wisely your baskets.

I think diversification made more sense for the Rothschild´s than it makes for people that
are invested in cryptocurrencies.
Bitcoin is simply too superior to all the altcoins. I would therefore advise against spreading your
investment across different currencies and recommend to buy Bitcoin for your whole investment.

My argument is actually quite simple. Just take a look at Ethereum. Ethereum´s main use case is
being a platform for "smart contracts". Now there are tons of competitors that also have this use case
like NEO, which is called the "Chinese Ethereum", ICON, Cardano and so on. The competition is
quite active and it is hard to know, which currency will eventually come out on top. On the other hand
Bitcoin´s main use is to be a store of value. There is not a single cryptocurrency that can compete
in this area and most not even claim to be a store of value.

Just buy Bitcoin and skip all the altcoin variance.

Diversification would always been a good idea and I wont argue on your own belief on going all in on bitcoin and not tending to go with other altcoins in the market. I would say and do the different thing which ive been engaging on both things which I do believe can really maximize out potential earnings. Back to topic about those conspiracies or involvement of Rothschilds then we wont even know but rest assured they can able to control easily on cryptoworld.

Samarkand

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Quote from: iamTom123 on December 28, 2017, 11:38:19 PM

...

Now, we are also facing some similarities in the world of cryptocurrency. Nobody can be certain of what can be months from now. So the best solution if one will not get out from this market is to diversify or put one's eggs in many baskets. However, in diversifying there are still some risks we have to minimize. We have to make sure that the baskets where we are putting our eggs will not be evaporating by the time we feel we need to harvest the investment. In other words, choose wisely your baskets.

I think diversification made more sense for the Rothschild´s than it makes for people that
are invested in cryptocurrencies.
Bitcoin is simply too superior to all the altcoins. I would therefore advise against spreading your
investment across different currencies and recommend to buy Bitcoin for your whole investment.

My argument is actually quite simple. Just take a look at Ethereum. Ethereum´s main use case is
being a platform for "smart contracts". Now there are tons of competitors that also have this use case
like NEO, which is called the "Chinese Ethereum", ICON, Cardano and so on. The competition is
quite active and it is hard to know, which currency will eventually come out on top. On the other hand
Bitcoin´s main use is to be a store of value. There is not a single cryptocurrency that can compete
in this area and most not even claim to be a store of value.

Just buy Bitcoin and skip all the altcoin variance.

mwinter

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Totally agree. It doesn't make much sense to hang on to just one coin and ignore other promising projects. Nobody is clairvoyant and putting all eggs in just one basket can certainly backfire. There is much to be learned from what happened in the past and as we all know, history often repeats itself.

Cryptophorus Columbus

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Very interesting topic; I think that we have a lot to learn from the past.
Btw, in this case, even there was surely a genius component, the situation was very specific and probably impossible to emulate.

Brunus

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Rasputin Party Mansion

Rothschilds story is a saga of financial genius.
Actually, we accept that there is only a limited numeber of genius in art of music (Leonardo da Vinci, Beethoven, Mozart, Michelangelo,...)
Why is seems us strange that only a limited of finincial geniuses exist?

Hydrogen

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OP's content reminds me of Elon Musk's proposal for humanity being a multi planetary species(diversification strategy) to prevent species extinction in the case of an apocalyptic event.

In the Rothchild's case, their policy may have been moreso an expansionist form of manifest destiny than diversification. They sought to create an empire spanning the entire globe, sending key family members to key geographic areas to accomplish this. It may be more fair to compare the Rothschilds to an economic and financial form of Napoleon or another who sought to conquer the entire world.

CryptoBry

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Quote from: Hulk86 on December 29, 2017, 03:49:52 AM

Quote from: davis196 on December 29, 2017, 02:25:10 AM

I don`t think that the Rotchilds history has anything to do with the cryptocurrency history.
The diversification strategy doesn`t work that well with cryptocurrencies,because bitcoin and the biggest altcoins were following the same trend,and for a better diversification,investors have to choose assets that follow different trends.Anyway,the next year will be crusial for cryptos,and i don`t think that we will see a tremendous growth in prices.

I think the Rotchilds history has everything to do with today's cryptohistory, because if Mayer had lived today he would certainly delegate one or two of his sons to deal with cryptocurrency markets to diversify their wealth.

That can be true. Anyway, the point presented here is that we have to learned to diversify our investments and it may not even be cryptocurrency actually. In dealing with the cryptos, some diversification can also mean a lot as it can spread the risks and this is the reason why there are now funds intended for cryptocurrency where the program will buy into a list of coins and tokens and follow their growth. In investment, the idea of putting one's eggs in many baskets remains to be true and tested.

Hulk86

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Quote from: davis196 on December 29, 2017, 02:25:10 AM

I don`t think that the Rotchilds history has anything to do with the cryptocurrency history.
The diversification strategy doesn`t work that well with cryptocurrencies,because bitcoin and the biggest altcoins were following the same trend,and for a better diversification,investors have to choose assets that follow different trends.Anyway,the next year will be crusial for cryptos,and i don`t think that we will see a tremendous growth in prices.

I think the Rotchilds history has everything to do with today's cryptohistory, because if Mayer had lived today he would certainly delegate one or two of his sons to deal with cryptocurrency markets to diversify their wealth.

kelvintxl

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Quote from: davis196 on December 29, 2017, 02:25:10 AM

I don`t think that the Rotchilds history has anything to do with the cryptocurrency history.
The diversification strategy doesn`t work that well with cryptocurrencies,because bitcoin and the biggest altcoins were following the same trend,and for a better diversification,investors have to choose assets that follow different trends.Anyway,the next year will be crusial for cryptos,and i don`t think that we will see a tremendous growth in prices.

Can you please elaborate on your point of view that there shouldn't be a tremendous growth in prices next year.

davis196

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I don`t think that the Rotchilds history has anything to do with the cryptocurrency history.
The diversification strategy doesn`t work that well with cryptocurrencies,because bitcoin and the biggest altcoins were following the same trend,and for a better diversification,investors have to choose assets that follow different trends.Anyway,the next year will be crusial for cryptos,and i don`t think that we will see a tremendous growth in prices.

iamTom123

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Let's not talk of any conspiracy theories always surrounding this very famous family instead let's look at how the family was able to survive through the tumultuous time they were in because they know how to diversify. Let's take a look.

Quote

When times weren’t good, they saw all of that destroyed. While their predecessors often lost their wealth through violence or expropriation, the new kind of international bank created by the Rothschilds inoculated them from the greed and whims of others. Changes made by the Rothschilds allowed them to insulate their property. As Paul Johnson noted in The History of the Jews, "Henceforth their real wealth was beyond the reach of the mob, almost beyond the reach of greedy monarchs."

The key innovation Mayer established was a level of interconnection and diversification that was unheard of at the time. Mayer sent his five sons to five cities. Amschel to Frankfurt, Salomon to Vienna, Nathan to London, Calmann to Naples, and Jakob to Paris.

And because of it, even through all the wars and upheaval of the next two centuries, the diversification allowed any one branch of the family business to be propped up by the others. Modern banks have long since eclipsed the Rothschilds in this kind of business strategy, but the nascent marijuana sector is presenting a new opportunity that is quite similar to what the Rothschilds faced. The market is fragmented, chaotic, and while not violent in the medieval sense, certainly difficult.

More here...

Now, we are also facing some similarities in the world of cryptocurrency. Nobody can be certain of what can be months from now. So the best solution if one will not get out from this market is to diversify or put one's eggs in many baskets. However, in diversifying there are still some risks we have to minimize. We have to make sure that the baskets where we are putting our eggs will not be evaporating by the time we feel we need to harvest the investment. In other words, choose wisely your baskets.

Topic: Lesson for Diversification: The Rothschilds Story (Read 143 times)