Bitcoin Bubble


#2269

Ok hope those Millenial hodl’ers aren’t losing too much sleep over their “investment”'s sudden demise… :rofl:


#2270

I don’t wish anybody bloodbath or bad will, but younger ones can recover. The mistakes are too costly for me.

I do know that one has made $320K very quickly. I hope he pulled out some profits.


#2271

That’s why it’s called easy money… easy come easy go… :wink:


#2272

Falconcoin is a new one. My friend got killed trying to lend it.

He bought Davor at $92. It went up to $180. When it dropped to $100, he said he’d sell it all once it got back to $180. It’s $11.54. He also has a bunch of money invested into the Davor lending platform. They were paying 1-2% interest per DAY. The key is the interest was in Davor coins and you had to leave your money invested for 9 months minimum. So when Davor crashes, your original capital vanishes and the interest is worthless.


#2273

Um… it really depends on how much of his networth he had invested into it…


#2274

I’m pretty sure it’s most of it. He was going to payoff his condo early with all the gains. He’s young, not married, no kids. So it’s a good time for him to gamble on a moon shot.


#2275

Ouch :cry:


#2276

Youth is wasted on the young… :sob:


#2277

I have been through at lot of downturns. I saw this coming. Like every one before, all the new investors said this is different. Old foggies like me didn’t understand. It’s not a classic bubble. Blah Blah Blah… The 2001 crash is not that distant memory.
Everything with a .com boomed and busted. This time con artists threw coin or blockchain on it and it took off. Now it is busted. Some will predict a recovery. Most will get taken out. A few made money, mainly the ones that sold in December.
This is a real estate forum. A few on here got rich quickly.
But RE is for the long haul. We call it bread and butter investing. 6caps and 4-5% appreciation 10% a year long term. Not bad especially in a leveraged investment.
You can make money in a bull or even beat market, but pigs get slaughtered at the trough… like my sewer plant worker and janitor friends…


#2278

Speaking of investing, I sometimes wonder if there’s a way to invest in local small business like small plumbing companies and such. Many of these have very low valuations and steady cash flow. But maybe they don’t want anybody to share their cashflow and will take out a bank loan instead.


#2279

Manch, you are talking about a partnership. Why buy into an existing one. There is a shortage of plumbers. All you need to do is find 4 competent plumbers and one with a license. Set up the company and run the back office with an office manager/receptionist and an answering service. Put up all the money pay the office rent. Buy the trucks. Maybe $500k needed to start. Could be making . $500k net a year. Pay your plumbers $80k a year and bill them out at $150/hr . Trump will get you started. Buy the trucks with a five year loan and right off all your costs the first year. Basically you get the trucks for free.
Get five trucks, 5 plumbers and you are billing out at $750/hr… $1.5m per year gross.
Can get double rates nights and weekends.


#2280

That sounds like an great idea!! But isn’t it hard to get quality people? Buying existing firm is easier for people like us with money but not the plumbing skills. Customers and reputation already lined up. Must easier to get started.


#2281

The bottom on the US exchanges today was $8507… I ended up not buying anything. . Thanks :-1:


#2282

You escaped tragedy… :laughing:


#2283

We told you to sell at $11000-$12000 in just a couple of days. Great return… like 1000% annualized. It’s all about the velocity of money. Like when you were flipping houses. The faster the the flip the higher the IRR. Bitcoin is for day traders. Best probably to take profits as quick as possible. In the long term something else will come along.


#2284

Hard to determine what a firm is worth. You can find these on the MLS or loopnet


#2285

The main disadvantage to investing in small businesses is liquidity. As long as you’re getting enough cash flow, then it would still be worth it. Small businesses usually sell for 1-2x annual profits. So in 2 years, you’ve made your money back and everything is profit.

I feel this is one area crowd funding isn’t doing a good job of serving.

Bitconnect is having a rough go of it. So much for cyrpto being anonymous.

I said the best way to make money off of cryto is to make a website covering it and make money off the ads.


#2286

Small businesses usually have PE of around 2. At least that’s true for restaurant business. But restaurants are terrible businesses. Maybe plumbing will fetch higher PE?

I like Warren Buffett’s model. He buys whole companies that already have good management teams in place. So he basically supplies the capital to buy the owners out and sit around collecting cash flow. If done right it can be very lucrative.

Obviously we will be doing at a much smaller scale. Something worth thinking about.


#2287

I need to buy a plumbering company in Tahoe. There are dozens and all are thieves. The worst are the the 24/7 Roto router types. They show up at night when you are desperate and quote $300 to snake your drain wth a $1000 machine. These guys don’t have any value to sell.
Their reputation is shit and nobody would recommend them. I use Clark’s plumbing … they are fair honest $100/hr
$200/h nights and weekends…


#2288

Buy 3 or 4 and you will be the plumbing king in Tahoe. :smile: