3. From the forums: What if you bought $1,000 worth of the Top Ten Cryptos on January 1st, 2018? That is a question posed to Reddit by @Joe-M-4. After running his experiment it was shown that you would be down 71 percent had you bought $1,000 worth of the top ten cryptos by market cap. This post caused many in the community to tune in and respond.
@NomBox said, " I think an important thing for people to take away from this is the opportunity cost of investing in a crypto bear market. If the regular stock market is going up, and crypto has been bleeding for a year, you not only lose on the money you put into crypto, but you miss out on gains from the regular market."
@Americanrealism responded, " You're right but unfortunately, opportunity cost is usually revealed in hindsight. When comparing a booming stock market against a falling crypto bear market, there are a ton of investors out there who would look at that and say "Well the stocks have been on a run so they might be running out of gas soon, but crypto has been in a bear market so maybe this has more upside and I can get in on the cheap and realize bigger gains."
Just saying the whole Warren Buffett adage of "You want to buy when there's blood in the streets" wins over for a lot of people. That right there is how a lot of people kept throwing fiat money at falling crypto."
@JeremyLinForever chimed in with, "Opportunity cost is speculation and luck. Like another poster said, it’s basically hindsight. It’s becoming increasingly obvious that gold and Bitcoin is inversely correlated with the stock market and interest rates, and you should know that Bitcoin dips when there is pending news of economic prosperity. Because the inverse yield curve has been going on for 3 months now, and people are chasing the gains from the stock market, now is the perfect time to try and acquire as much Bitcoin as you can. Why would you chase the stock market when it’s at its historic peak? This won’t bode well in a few years..."