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0 pointsprottog3y ago0 comments

You could consider lottery tickets as an OTM option expiring in a week with those payoffs, I suppose. If you spread 1% of your portfolio over a year and buy lottery tickets every week, you're effectively losing 1% per year with a very small chance of becoming very rich.

There are probably better places to put your 1% on. ;-)

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SketchySeaBeast3y ago

> There are probably better places to put your 1% on. ;-)

I totally agree, but the argument being made is that "the potential upsides outweigh the low probability". That's not investing, that's gambling.

koonsolo3y ago

Your argument is that once it's high risk, it's gambling. Sorry but that is just not the case. It's a ratio. If you don't understand this, then I agree that you should stay away from anything that involves risk management.

Let's say we play a game where you throw a coin 3 times in the air. If it's not 3 times head, I'll pay you $1. If it's 3 times head, you pay me $10.

Your chance of winning is pretty high, while my chance is low. Yet, I would love to play this game.

SketchySeaBeast3y ago

> Your argument is that once it's high risk, it's gambling.

No, my argument is that once it's a matter of "you could lose everything or make it big!" is gambling.

> It's a ratio.

With totally unknown values.

> Yet, I would love to play this game.

This is exactly what the people who currently hold bitcoin are suggesting to those who don't.

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0 pointsprottog3y ago0 comments

There are probably better places to put your 1% on. ;-)

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SketchySeaBeast3y ago

> There are probably better places to put your 1% on. ;-)

I totally agree, but the argument being made is that "the potential upsides outweigh the low probability". That's not investing, that's gambling.

koonsolo3y ago

Let's say we play a game where you throw a coin 3 times in the air. If it's not 3 times head, I'll pay you $1. If it's 3 times head, you pay me $10.

Your chance of winning is pretty high, while my chance is low. Yet, I would love to play this game.

SketchySeaBeast3y ago

> Your argument is that once it's high risk, it's gambling.

No, my argument is that once it's a matter of "you could lose everything or make it big!" is gambling.

> It's a ratio.

With totally unknown values.

> Yet, I would love to play this game.

This is exactly what the people who currently hold bitcoin are suggesting to those who don't.

1 more reply

j / k navigate · click thread line to collapse