HomoSapien wrote: GoBlue72391 wrote:
Great story. This is my YOLO move. It seems silly, but I truly think if I play this right it could turn out to be a life-changing gamble.
I know nothing about this stuff, but how much should someone buy if they're trying to get into it right now? I recently came into some money and have been looking for some investment opportunities but the whole GME thing looks too volatile so this may be a good alternative.
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Crypto is really volatile as well, but it seems like a realistic goal for Dogecoin is a $1.00 per coin valuation. Like a week ago it was worth 5 cents and now it's worth more than a U.S. quarter.
I'm not saying this won't happen, but why do you feel that is realistic that it will be worth 20x what it was before? What is the driving factor that it will be worth more? Where can you spend it and how can you use it?
If you are betting it will be worth more because you think other people will just do the same thing to drive up the price, then you are purely speculating and assuming you are smarter than everyone else in the market.
That might be true, it might be a great gamble, but if there is no fundamental reason that it will be worth more, it could just as easily be worth 1c in two months. Your rationale for investing is just that lots of other people made money on crypto, and historically, when people start buying for this reason, they have already missed the train. Just like those who tried to buy gamestop at 300 to short squeeze it more because it became a major news item.
Now maybe (to continue on the gamestop analogy) we are at the point where gamestop was at 100 and it was a big story, and it still went way up, and you still could have been way more profitable, but maybe you're already at the peak, and you are the sucker that's going to lose all the money that makes someone else rich.
Unless you have some reason/rationale to know why you think one is true vs the other, you're just blind guessing on a high risk asset. There are high risk assets at any point in time that you can gamble on if you just want to gamble in high risk assets. Just play stock options or commodities or whatever else. It's a permanent option to gamble in things with massive volatility if you just want to throw your money into something that can just as easily go up by a factor of 10 as go to zero.
Or maybe this isn't gamestop at all, and there is a strong fundamental reason why dogecoin is going to have high value in the future.
Again, this isn't to say crypto won't be a great investment from here forward. I'm sure someone in 1990 was saying it's time to get out of microsoft, they made so much money already. I would just look to understand why you think an investment has value prior to getting into it.