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clock Created with Sketch. 13/02/22
18:24
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Originally posted by Jean Luc Bergman:
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There are often companies where you have a gamble such that they're priced to fail and if they don't maybe you have 10x upside and your downside is obviously capped at initial invested, such that you can only lose 1x. Often these short term bets such that you'll know quickly if it will pay off or fail. If you have a 50/50 bet with 10x upside and 1x downside, you'd take these every single time at least as partial aggressive allocations in a broader portfolio. A large portion of cryptocurrencies fall in this boat, Bitcoin I think is a fantastic investment because its proven over time to have sustained growth over a decade and provides the same functions of gold, for which if it attains the market cap is a full 10x and I'd put the chance closer to 80% over a five year period than a coinflip 50%. Occasionally for smaller projects this can be an upside of 100x vs downside of 1x initial investment, these investments can be justifiable even at relatively low confidence.
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Bitcoin is not only worthless, it costs money , energy, expensive shortlived equipment to maintain.
(20min delay)
