Quote from: katrimans on August 25, 2018, 05:35:10 AM

Quote from: jaysabi on July 24, 2018, 07:38:47 PM

Quote

I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.
-Warren Buffet

This quote is constantly bandied about as justification to invest in Bitcoin, and especially now that there has been some nice price movement in the upward direction. But this Warren Buffet quote is only relevant with the proper context, which is that Warren Buffet only invests in things he has a fundamental understanding of and can quantifiably value. You can confidently be greedy when others are fearful if you have a sound investment thesis and are a fundamental value investor. This is how he turns his investments into home runs, he knows what he's buying and what it's worth and can weather the negative sentiment until the market learns what he already knows. This doesn't apply at all to a speculative investment like crypto. Following this advice willy-nilly is gonna get you burned because you're misunderstanding the intent and the application.

Don't not buy Bitcoin if that's what you want to do, but don't fool yourself into thinking you're following Warren Buffet's advice. Warren Buffet doesn't speculate, and if you're buying crypto, you're speculating.

Lol, I dont have any problem with being greedy when others are fearful, the main point is if you are doing that at the right time cause you might just end up being greedy at the wrong time and end up a big time loser.

And by the way, greediness is a bad thing, so lets not use that word, just say invest and be smart when others are being dumb, thats a better word than being greedy. So always try to do whatever youre doing at the right time and dont feel like you know everything, cause you might be making the worst mistake.

Yeah, that's pretty much the whole point of my post. Being greedy to be a contrarian isn't actually sound advice, but people interpret the advice from Buffet superficially and don't actually grasp what he's saying. Inherent in his direction is the underlying concept that you have a sound and rationale decision for investing at the time other people are actively fleeing a particular investment; simply buying because everyone else is selling is a terrible idea without a fundamental analysis of the underlying value of the investment, which in crypto is nearly impossible because it's a unproductive asset with no inherent value and the value is arbitrarily determined by consensus. Being a contrarian under those circumstances is actually the worst thing you can be, because being outside of the consensus is going to lose money by definition.