Oh, so I don't get it, measured by dollars in vs dollars out my NetApp friend returned 50% on his investment of $4,500 in six months for an annualized rate of return of 100%. How is that not better than 3% municipal bonds?
It isn't 'dumb' its 'normal speculation' but with a different commodity.
I think TylerE's point is that further 50% gains in six months are not guaranteed. You can look at any stock index and find assets that spiked in a similar manner. Had you invested in those, you would have made the same return without having to buy, store and run hardware.
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Oh, so I don't get it, measured by dollars in vs dollars out my NetApp friend returned 50% on his investment of $4,500 in six months for an annualized rate of return of 100%. How is that not better than 3% municipal bonds?
It isn't 'dumb' its 'normal speculation' but with a different commodity.
I think TylerE's point is that further 50% gains in six months are not guaranteed. You can look at any stock index and find assets that spiked in a similar manner. Had you invested in those, you would have made the same return without having to buy, store and run hardware.
His point is that he'd have made 150% just buying the bitcoins rather than the mining gear.