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Old 08-17-2020, 02:17 PM   #15
Milhouse86
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Quote:
Originally Posted by Dzmitry View Post
Not going to dwell on this, but in my opinion, Crypto is still very volatile and unpredictable for the future. There are various sources that say it will skyrocket and others that expect its continued decline over time or downfall. I may not fully understand this, so correct me if i'm wrong, but the interest you gain is on the cryptocurrency itself. In other words, to bring in an example, you purchase 1 bitcoin and place it into one of those accounts that compounds interest. Say it was worth 10K. But the value of the bitcoin is still where the danger lies. Sure, at 8-10% interest over a period of a few years, you may be sitting at around 1.5 bitcoin. But if after those years, Bitcoin is now worth 5K, you just went down 2.5K, no?

Assuming my example is correct, the risk holds true in cryptocurrency. Your assumption is that you have high expectations in its success, and therefore expect to make great gains from this. But this may not be the case.

EDIT: I was typing this before your latest post. I can see that if the value of the coin matches the dollar, the case is different then.
Yep you got it!!

I believe in Bitcoin in the short to mid term, so I keep most all my liquid capital in Bitcoin now. If the price goes up you can see how earning interest in the crypto can multiply quickly. And with it being easy to spend now it is a viable currency.

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