Crypto simply followed the overall market effects. People cashed out with the economic downturn on the profits they made, just as they did the stock market.
Crypto is performing far worse than even the riskiest decile of the stock market. Which should surprise nobody.
If you want to go for a rodeo, there are litanies of similar success stories in penny stock and angel investing.
It seems like the pro-crypto arguments end up being circular sometimes (not from the same person but the community).
If the market is good, it's a great investment.
If the market is bad, buy the dip!
If it's unstable, remember all thos people who made money?
If it's stable, well it's a currency after all.
There are so many people who view crypto differently there's always someone there to sing it's praises. I'll still have no idea what crypto is supposed to be aside from a vehicle for fraud.
It's anonymous payment!
Great for
- avoiding sanctions
- selling drugs
- receiving blackmail payments
Those are huge markets that are completely untapped by legacy payment processors!
If that doesn't sound like a great investment opportunity!
This isn’t how numbers work.
Also, practically every asset class has a member that went to zero. The question is what fraction, and how did the others do. If you bought a basket of super-risky assets, over the past years, they went up like crypto and down less.
Huh?
> This is not true. The riskiest stocks are down thousands of %.
I mean, sure looks like you were trying to argue that crypto isn't performing worse than the riskiest decile of the stock market, which just isn't true at all.
The iShares Small Cap Growth ETF (which is a probably a decent proxy for the most volatile companies in the market) is only down 13% on the year.
Former options market maker here. Taking leveraged, directional risk with options is textbook reckless trading. That Robinhood found people to swing options and crypto is not representative of traditional finance.
What made Robinhood (originally) unique was stripping away those protections, or otherwise automating them away in a mobile app. We have lots of concrete examples of people losing their life's savings on Robinhood, in no small part because of how easy it made leveraging oneself.
Your knowledge around opening an options account is slightly outdated. They used to have net worth requirements and more legal forms. Some time around 2020 though at the beginning of the pandemic all of this was removed. It's a few clicks now at pretty much any major investment bank such as TD Ameritrade.
The only commonly traded way to lose more than you started with are futures (not available on most retail platforms) and CFDs (not legal in many markets, including the USA).
"The riskiest stocks are down thousands of %" is untrue regardless of whether that position was in regular shares or /r/WSB style 10,000 calls expiring Friday.