>> Neither do they really understand the relationship between risk and reward.
Very few people do, in any arena. It frustrates me that people neither see nor understand the connection between the two. It exists in pretty much everything we do, you'd think people would focus on getting the hang of it.
>> Does crypto have a role? With hindsight, it would have been a brilliant idea. But
>> if you had been making that decision say 5 years ago, would it have looked
>> reasonable? Truth is I suspect that it is very risky, but potentially very high reward.
Far too heavy on the risk side for me. And when something is risky it doesn't mean it will never work out, it means it usually won't. So those people pointing at a high risk investment that did work out as some kind of justification for all high risk investment that also irritates me.
>> How will it work in relation to economies?
I don't know. I still believe that it is a fad that will eventually become worthless unless a country or other fund legitimises it in some way, and I don't see that happening since sufficient control is not possible.
>> Perhaps like gold, which people use as a store when economies and normal investments look risky.
Those I know that invest heavily in gold always cite the fact that it is somehow real and legitimate because it actually exists. That isn't a view I subscribe to, but one would have thought i precluded them from investing in anything virtual,
>> If I'm honest I really don't understand it and I don't trust myself to know
>> whether it's a good investment or not.
I'm basically in the same position, but I'd say it's as good an investment as anything that high risk. Sticking a pin in the next days race card would be similar, I guess.
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