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No matter how good crypto does and how undervalued it is older people just wont consider it. And young people really believe in it. I couldnt convince my father even though I explained how it works and why its gonna be so big. I hope its tjat old ppl just dont understand technology and not that they are right about it not being a good investment
Younger people also find crypto to be bad, although for a different reason. Younger people dislike it for the power consumption that the mining causes.
Older People are much more likely to remember other things that had no apparent value that went up, and then crashed to almost nothing, or nothing at all.
About a year ago I read an analysis of where Crypto fit into the economic system as a monetary system. The conclusion was that crypto had a value of between $300 and $1000 per "coin" based on what it is and how it can be used as a monetary exchange unit.
All other value above that is speculative. Its worth more because people think its worth more... and there is no other value above a very basic value beyond what people think its worth.
Older people have seen things like this in the past... and seen what happens when people stop believing something has value above what it really has. People lost many 100's of Billions when the "dot com's" virtually all went bust. Stocks for many companies that had gone from dollars per share up to several thousand dollars per share became totally worthless very fast. That could happen to crypto as well.
As an older person myself, I see crypto as a speculative investment. There is nothing wrong with speculative investments. But, you should build a solid investment portfolio first before you put much money into speculative investments (get rich quick often means get poor quick as well).
Furthermore. Since Crypto is an investment, that means it has to be tracked and reported to the IRS as an investment. I figure it would cost me at least $100 a year for my accountant to file the appropriate investment forms if I provided all the investment data to them on each transaction and the profit, loss, for said transaction.
At this point, its not worth my time nor the accountant fees to get into crypto. There are far safer investments that require a lot less efforts as far as reporting and taxes.
You dont need a accountant for it. You just have to download a free app which will give you your wallet. Its classified as a property by the IRS so you dont have to tell them about it until you cash out and you must pay the capital gains tax on your profits.
The value increases on a variety of factors but basically the more people using the crypto the more the value goes up. And just to scale for you. Not even the first but the second biggest crypto, ethereum did exchange 50% more money in the first quarter of this year (1.5 trillion) than paypal did the entire year (936 billion). Paypal also just started accepting payments in bitcoin which drove the price up. Every time a corporation jumps on crypro value goes up. It also goes down after big sell off but these are very predictable. When it hits bottom you invest more and it will recover eventually and goes back up.
If a place like amazon started taking payments in crypto you're gonna see the price sky rocket more than you can imagine. And its coming. Many countries dont have visa or mastercard and can not use amazon with their banks debit cards. Anyone can use crypto. It would be good for amazon financially to accept it.
The value fluctuates too much, which is why I'm reluctant to invest in crypto.
Thats why you can make so much money off of it. Its pretty predictable it goes through cycles. Look at a chart of it. It goes way down then a few months it shoots back up. And its not hard to know when to invest because it will literally be going up by 10% - 30% day for a few weeks straight.
and you can loose money with it as fast as you can make money with it... The older people have seen this happen many many times...
The base idea behind crypto coins has some value; and I suspect that at some point they will all come crashing down to their actual value as a monetary instrument. That decline could be very rapid.
i was in my bosses office one day in the earlyish 2000s givin him shit about (among other things) the employee-owned companys finances and lacka financial transparency
he finally got fed up with me he tossed me a portfolio and said 'heres the company financial report for fucks sake'
i took one look and busted out laughin hysterically cause the cover said 'prepared by arthur andersen co'
he threw me outta his office
youre a smart feller and im sure youll remember why that was funny and how it ties into this thread
You know what it is is older cats dont wanna take a risk because crypto is a big risk. But you're not gonna find any other investment where you could potentially make 30k from 1k. Theres no other opportunity like that. Sure u may lose 1k. But its just 1k. Fuck it. You could make a gazillion off it.
I'll wait until you have 1K remaining from a 30K investment to reassess its investment value.
Or maybr you're being a fool and could have made millions of dollars several times. People act like you have to keep your money in crypto forever. You can also sell it when it goes up.
Bought Ethereum few months ago at 1600 3 weeks ago sold it at 4200 last month. Bought more again at 1700 its back at 2500 today. I dont see any way im gonna turn 30k into 1k. Because I will get out before it goes under what I bought it for.
If that happens to you you're a fool and you cant read the cycles. Its predictable. Yoy pump and dump at the same time as everyone else. You can see the whales buying and selling because its all public. When the billionaires start selling you sell. When they buy you buy. Every transaction is public you see the addresses and how much they buy. When several whales start buying billions you buy and you will see it go on a 2 week bull run like its on now.
I do indeed remember....
The other big item to avoid... Financial Advisers who primarily get paid on commissions from selling you financial services and on commissions on your trades.
Been there, done that.
Someone always earns decent money.... and its usually not the investor. In fact, I never lost money so fast in my life.
While I may accept someone who has occasional products they sell that they get commissions; its hourly fee only or a % of my earnings only financial advisors now.
I also research them and ask up front for me to show me their personal financial records since they started financial advising and what their personal portfolio is. The ones who are just above broke will not share (as it shows that they actually have no idea how to make $ with investments), the ones who can show that they have built a solid performing personal portfolio are more than willing to share; assuming you have a decent amount of $ to invest with them.
Note that many of these will show you that they goofed up in their early years and wised up at some point (and will tell you the lessons they learned) - so their personal wealth may only have been increasing for only part of their career. I tend to chose these people as they personally know the pain of youthful financial mistakes.