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richxrp

Are you just speculating in XRP or are you a True Long Term Investor?

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The problem with holding forever except for living expenses, is that it can eventually violate the Golden rule of wealth preservation: don't put all of your eggs in one basket.

You'd be dumb to not diversify over time after you've built some level of wealth.

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1 minute ago, Lurker123 said:

High risk, high reward investment. I had to blow a bonus and a friend that works in the finance Industry told me to look up xrp. What the heck is a long time investor? If it gets to my target price tomorrow im out. If it gets there in 10-15 years....whatever. I think its a 50/50 bet atm..

A long-term investor is one that realizes the long-term disruptive potential of this tech and is holding out until the tech, adoption, and ecosystem matures, at least that's what this long-term investor is doing.

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I believe in the long-term potential of the technology and look forward to how it will alter the financial landscape... hopefully in favor of an economy based on profit-participation. I think breakthroughs like Codius and ILP might lead to whole new business models we can't imagine at the moment.

My investment in XRP is related to my belief in the tech, but it's purely greed-based. If I make money from this, I will donate as much of the interest to charity as I can.

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Posted (edited)
11 minutes ago, mrhat75 said:

The problem with holding forever except for living expenses, is that it can eventually violate the Golden rule of wealth preservation: don't put all of your eggs in one basket.

You'd be dumb to not diversify over time after you've built some level of wealth.

Well yeah, I only have enough invested here what I can afford to lose. 

Of course there's no denying that there has to be a rebalancing among asset classes if XRP were to rise astronomically.. but I would consider it as a bona fide asset class to include in my list of assets such that it would occupy a much larger portion of my portfolio than it does currently..

interesting factoid .. I just calculated what my entire stash was as a percentage of my net worth.. and it's a humongous 0.793% of everything that I own !

if it goes to $100 , that would really really dwarf the value of all my other assets..

Edited by richxrp

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Buying XRP in the hopes that it will increase in value would go under the category of speculation. It's definitely not considered investing in any sense of the word. Buying into a mature company with a proven track record would be considered investing. Think Dow Jones blue chip companies. With that being said I'm in XRP for the long-term, making me a long-term speculator. 

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2 hours ago, xrp_sea said:

Buying XRP in the hopes that it will increase in value would go under the category of speculation. It's definitely not considered investing in any sense of the word. Buying into a mature company with a proven track record would be considered investing. Think Dow Jones blue chip companies. With that being said I'm in XRP for the long-term, making me a long-term speculator. 

Agree 100% this whole space is still speculative it could go either way.

I hold a few coins always keep about 25% in XRP.

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15 hours ago, Paulo said:

I will sell some at certain price points will hodl some until at least 2035. I believe a maximum value should be achieved by then. 

I could be deid by then...!!

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5 hours ago, UniversalYou said:

I could be deid by then...!!

I suppose me too. Although 16 years from now I would not even be close to retirement age yet so I suppose that is a good hodl.

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Posted (edited)
On 3/10/2019 at 4:48 PM, enrique11 said:

A long-term investor is one that realizes the long-term disruptive potential of this tech and is holding out until the tech, adoption, and ecosystem matures, at least that's what this long-term investor is doing.

No. The essence of a speculating is "potential".  You invest in an established space that can grow, not nothing, rumors, and maybe. You are now in the BIGGEST gamble. ever. 

Edited by Spekul8

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Posted (edited)
9 hours ago, Spekul8 said:

No. The essence of a speculating is "potential".  You invest in an established space that can grow, not nothing, rumors, and maybe. You are now in the BIGGEST gamble. ever. 

Well, this is how I see it:

Here are some definitions from Investopedia which are very basic, and not always suitable for all applications, but generally gets point across:

https://www.investopedia.com/ask/answers/09/difference-between-investing-speculating.asp

So, according to this definition, the main difference is the level of risk.

Assets fall on a continuum in terms of risk.

At one extreme for example you have derivatives which are assets whose values are based on the movements of underlying assets, so they're inherently highly risky.

And at the other end of the spectrum, as an example you have government bonds of well-establish large governments that yield low interest rates, like at the risk-free rate, for example.  These are low risk because you earn interest at a risk-free rate and if the government backing these bonds has been around a long time, chances are they will still be around in the short term, so these are inherently, generally low risk.

Derivates are risky - that's their nature, because the asset's value is based on another asset's price, so the risk is multiplied because you're basically guessing how the underlying asset's price will behave in the future.  Similarly, trading is inherently risky - that's it's nature.  The standard stock price model in actuarial science is a continuous random walk, so that should definitely impart  the level of risk involved in trading.

I don't see  holding XRP as being in the same boat as trading XRP, because trading is trading and will always be trading..it might become less risky with time because of market cap growth allows for less price volatility, but   XRP's level of risk should be reflected in its price with time.  The riskier the asset, the cheaper it is, generally.

So, while I would agree with you that Ripple the company in its early years was very risky and investing in XRP back then was highly speculative, with time the level of "speculation" (risk) has gone down with XRP's/Ripple's success and if XRP succeeds in it's targeted use cases, then we are definitely solidly in 'investing' territory.  I would be much more comfortable investing in XRP now (hodl) then when I invested (hodled) in it 5 years ago, back then it was highly speculative, but today it's not as speculative, and if it succeeds, it's definitely an investment.

This is how I see it.   It's just my opinion.  It's OK for us to disagree ;P~~

The risk I have now is so low because I've been in XRP so long that I haven't even cashed out my initial investment in XRP because my odds of losing it are very low.  Still it's speculative, but relative to my initial investment and the progress of Ripple and growth of XRP network over the years, it's definitely not as speculative for me.

 

 

 

 

 

 

Edited by enrique11
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Posted (edited)
On 3/12/2019 at 10:04 AM, enrique11 said:

Here are some definitions from Investopedia which are very basic, and not always suitable for all applications, but generally gets point across:

https://www.investopedia.com/ask/answers/09/difference-between-investing-speculating.asp

So, according to this definition, the main difference is the level of risk.

 

 

While I disagree with the first part of their definition, their example is right. Investing is when you get a divided,  and an income from business. In fact, XRP is not only not an investment it's a pure opportunity cost versus the stock market, not to mention some individual stocks that have 5X this year.   No one wants to admit he is a speculator, because all want to think they made a rational and educated decision. Can we agree to disagree? sure.  Does speculation mean you will not collect rewards? No. You can walk away with a lot. But, in my eyes, despite all your knowledge and rational, you are a gambler in a new space that has not been established. Don't think for a minute that because you use information, you are not a speculator. Build a business, get income. Rent a house, get income. Build a site, sell something, get income.  that is investing. 

Edited by Spekul8

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