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Re:SEC Accuses Binance of Mishandling Funds and Lying to Reg... by marcosdumay on Monday June 05, 2023 @04:40PM (#36203281)
Investing in "deflationary assets" is exactly the greater fool theory.
Re:SEC Accuses Binance of Mishandling Funds and Lying to Reg... by gemstones on Monday June 05, 2023 @06:24PM (#36204925)
Sounds like a great theory, TBH! Seems like you can make a lot of money that way, not sure why I should view it as a bad thing.
Re:SEC Accuses Binance of Mishandling Funds and Lying to Reg... by gemstones on Monday June 05, 2023 @06:35PM (#36205078)
It really depends on the timescale, right? There are a couple of extremes.

One extreme: At some point far in the future, perhaps dollars aren't a thing anymore - the last people holding dollars are the greater fool. (Note I still hold dollars and ETFs and conventionally safe investments, that's not a knock on the dollar.) But over a long enough timespan, there's a greater fool. There are just a lot of people along the way who got a lot of value out of dollars.

Another extreme: There are things like beanie babies where there is a very short amount of time to find a buyer, and the last one to buy the beanie baby before the fad stops is the greater fool. This is over a much shorter timescale, and there are only a few people who get a lot of value out of beanie babies.

Crypto is somewhere in between. I think the black market use case means crypto is closer to the dollar side of the spectrum than the beanie baby side of the spectrum. I think there's a decent chance there is always a greater fool in decades, well long enough for me to get out while I've gotten value out of it.

Re:SEC Accuses Binance of Mishandling Funds and Lying to Reg... by vikramkr on Monday June 05, 2023 @06:27PM (#36204966)
Why does it sounds like you can make a lot of money that way? Bring reliant on someone else being willing to pay more on the basis that they'll find someone else later to pay even more doesn't create a stable foundation
Re:SEC Accuses Binance of Mishandling Funds and Lying to Reg... by EdwardDiego on Monday June 05, 2023 @06:53PM (#36205344)
Sucks when you're the last and greatest fool though.
Re:SEC Accuses Binance of Mishandling Funds and Lying to Reg... by gemstones on Monday June 05, 2023 @07:19PM (#36205695)
For sure, but I'm not sure how that's any different from any other particularly risky investment. If you're not comfortable with that risk, put your savings in T-Bills.
Re:SEC Accuses Binance of Mishandling Funds and Lying to Reg... by polygamous_bat on Monday June 05, 2023 @10:30PM (#36207319)
That sounds like a slippery slope fallacy: "if you are not comfortable with a crazy amount of risk, buy the safest thing in existence." Why? What happened to everything in between?
Re:SEC Accuses Binance of Mishandling Funds and Lying to Reg... by EdwardDiego on Tuesday June 06, 2023 @10:05PM (#36221930)
Most risky investments don't "look deep into your heart and assign you risk based on the order in which you joined".