Just because prices are high, doesn't mean that is a good investment.

[magneto]

Shouldn't it actually be the reverse?

If prices are low, then it is more likely that it is going to be a good investment going forward.

People tend to forget that returns is a function of both present and future price. The higher present values are the lower the percentage returns are going to be as well.

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[jostorres]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

Price doesn’t say whether the coin you’re investing in is good or not, unless we are talking about the market cap. I have seen coins/assets with ridiculous prices, but their market caps are nothing to write home about’ lol. While there are assets with a very low price that might even be $0.001, but when you check their market cap you will see that their market cap is really huge.

That’s when you would be prompted to check the price chart to see how the coin has performed over days, weeks, months, and you would see that they have really made a huge percentage, and some of them would go from something like $0.00001 to $0.01. That’s still a low price, but it’s a huge profit from if you calculate it. So it’s not really a matter having an expensive price.

[Cindella]

You cannot judge an asset based on its price and invest in it. Through the analysis of the market, understand the price changes and the right timing of investment.

[andriarto]

I have seen this kind of argument that just because the price of a commodity is high means that it is a great investment.

To a certain extent, a high price often means that investors have faith in the fundamentals of the commodity (For example, one of the most expensive shares in the American stock market is Berkshire Hathaway, which has consistently outperformed the S&P 500 since 1965).

Price doesn’t say whether the coin you’re investing in is good or not, unless we are talking about the market cap. I have seen coins/assets with ridiculous prices, but their market caps are nothing to write home about’ lol. While there are assets with a very low price that might even be $0.001, but when you check their market cap you will see that their market cap is really huge.

That’s when you would be prompted to check the price chart to see how the coin has performed over days, weeks, months, and you would see that they have really made a huge percentage, and some of them would go from something like $0.00001 to $0.01. That’s still a low price, but it’s a huge profit from if you calculate it. So it’s not really a matter having an expensive price.

right, a large market capitalization supported by a large and solid community will bring a coin to its glory, on the other hand, with the support of a product or a large plan of a coin will certainly add to its positive value. so a high price, not necessarily a good coin, it is different with bitcoin where it only has a small supply, and because it has trust, the price is even higher, even though ethereum actually has more features than bitcoin

[Mauser]

I fully agree with you that a high price is no indication that it's a good investment. The only thing that a high price tells us is that it was a good investment in the past. All the investors who gave been part of the rally made money. But this is not a guarantee that the price is going to rise higher in the future. There are many factors that determine if a project is a good investment. Also the price could have been manipulated to be high without any fundamental justification. A ponzi scheme also has a very high price, right until the moment the bubble burst, then it becomes worthless. Better not to trust a high price alone.

[TheGreatPython]

I fully agree with you that a high price is no indication that it's a good investment. The only thing that a high price tells us is that it was a good investment in the past. All the investors who gave been part of the rally made money. But this is not a guarantee that the price is going to rise higher in the future. There are many factors that determine if a project is a good investment. Also the price could have been manipulated to be high without any fundamental justification. A ponzi scheme also has a very high price, right until the moment the bubble burst, then it becomes worthless. Better not to trust a high price alone.

If it was just a thing about the past then I would understand, but as we can see even in the last 1 year we have seen 2x increase in bitcoin and that should tell you that every single year it is going up like crazy. Sure we had bad years as well and people are not entirely sure about if we will have a bad year or good year, that part is understandable. But to say that bitcoin did all the increase it could and will stop here would be naive to think about.

Bitcoin may drop here and there, it may not be 2x every year, but usually it is, in 2017 we had an amazing year, 2018 was bad, 2019 started with 3.6k and ended with 7k and 2020 started with 7k and ended with 30k and 2021 started with 30k and ending with 50k or so, reached higher but lets forget about that and just say ending with close to 50k. So if you still want to doubt bitcoin, then go ahead and doubt it, but I won't.

[dmamigo]

Obviously not, with the current news in India that a bill might be introduced, people are panic selling nearly every time the market trends go down, and with all these, people who bought BTC or any alts at their highs, their money will be stuck so as said in the topic it is true, moreover very much practical. But personally, I believe at a certain point it will be a profitable buy because I believe the all-time high will also cross, but that is my speculation.

[stadus]

That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

[Fatunad]

That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

There would be always that wrong impression in all of things on which you would really be believing until reality would happen and slap into your face and made you realize that you were wrong.
Learning do always comes in the end whether it is acquired through research or would be acquired with bad experiences.This is where people do make out
decisions basing on what they had done in the past.
Be wise and Be aware on what are things happening because this will really be helpful on your investment journey.

[Wawa2013]

That's what some people thought about crypto, they are likely to get more interested if the market is bullish, and I would say it's wrong because they thought the price will continue to rise that they want to exit with a huge profit, their greediness sometimes will put them in a situation that they will be force to sell at a lose as they would not see the dark side, or the reverse of bull run which is the bear run.

There would be always that wrong impression in all of things on which you would really be believing until reality would happen and slap into your face and made you realize that you were wrong.
Learning do always comes in the end whether it is acquired through research or would be acquired with bad experiences.This is where people do make out
decisions basing on what they had done in the past.
Be wise and Be aware on what are things happening because this will really be helpful on your investment journey.

Sometimes we are too late to realize the mistakes we made, that investing during a bullish trend is not always good. But it doesn't matter,
because we will learn from those mistakes. So that in the future we don't repeat the same mistakes, bad experiences when investing can make us
more careful and wise when making decisions. We will become more and more aware of how to invest properly. I admit that being a successful
investor is not easy, we do have to go through a long process to be able to make the right decision. Learn by doing is what everyone has to do
if they want to make a profit when investing. It doesn't matter at first we experience losses, but next we know how to minimize losses and
maximize profits. Never give up if we experience failure, must rise again to achieve success.

[habebe]

Well, the price of bitcoin is high, does that mean you deserve to join an investment into bitcoin?  however, it's really that simple that you need to make sure that you can invest little by little just in case or maybe you can hold on to what you can invest first and try to be patient before joining so that you don't regret it later, the  investing is like gambling you never know when you will win or lose so you need not immediately trust make sure really if you want to invest.

[istiak2277]

Shouldn't it actually be the reverse?

If prices are low, then it is more likely that it is going to be a good investment going forward.

People tend to forget that returns is a function of both present and future price. The higher present values are the lower the percentage returns are going to be as well.

Your concern is valid when that project has enough potential utilities. A project with no use case or development won't even survive the market no matter what the price is. Privet investors would dump their tokens to the market at any price they got. Lower percentages of return are also good if they reduce your risk.

The higher present values are the lower the percentage returns are going to be as well.

It's not true if you can hold that project for a long time. The highest BTC price in 2013 was 1100$ and if you were in 2013 you must have thought it became too valuable and won't go higher. But look at the price of BTC right now. The longer you can hold the more you will get profits.