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A comment on Are we in a cryptocurrency bubble? A comparison with the 2000 dotcom bubble.

Re:Are we in a cryptocurrency bubble? A comparison with the ... by tfmatt on Tuesday December 05, 2017 @04:52PM (#15856366)
Allow me to save you sometime, the author basically sums it up with this:

    Conclusion: It’s obviously a simplified model and you can play around with the numbers and get marginally different results, but the key insight is that even if you’re a fervent crypto believer, if you think there is a nonzero chance a crash might happen then in order to maximize your EV (i.e. make the most money) you should keep some % of your money on the sidelines to invest once the bubble pops and lower your average buy-in cost. The higher the probability you assign to a crash, the more money you should keep on the sidelines and vice versa
[ Parent | on HN ]
Re:Are we in a cryptocurrency bubble? A comparison with the ... by _Chief on Tuesday December 05, 2017 @11:36PM (#15858560)
Sorry, trying to read this was so painful and time wasting on mobile.

For anyone else not interested in scrolling:

Conclusion: It’s obviously a simplified model and you can play around with the numbers and get marginally different results, but the key insight is that even if you’re a fervent crypto believer, if you think there is a nonzero chance a crash might happen then in order to maximize your EV (i.e. make the most money) you should keep some % of your money on the sidelines to invest once the bubble pops and lower your average buy-in cost. The higher the probability you assign to a crash, the more money you should keep on the sidelines and vice versa

[ Parent | on HN ]