Ask HN: How do I convince my sister to stay away from investing in crypto?
I found out, by accident, that my sister is investing in crypto (bitcoin and ether). She is not a technology person. The fact that she did it without consulting me (the “computer guy” of the family, with an actual career in technology) is what bothers me the most: either she had no idea that this was a risky investment and thus did not think it was relevant to even ask me, or she knew it and actively avoided my opinion. Both situations are alarming. (What I actually think happened was that some kind of enthusiast friend convinced her.) How would you go about showing someone you love the dangers and harsh reality about crypto investments?
12 comments
I think you could casually send her some articles on the Luna collapse - or the 100 of recent articles on the collapse. But unless she is investing the majority of her wealth I would probably stay out of it? It isn't your money. It's possible to have opinions on bitcoin without being a programmer. And plenty of people with actual careers in technology have different opinions from you. And people in finance may have different opinions altogether and may even be more qualified.
If you had a relative in real estate would you not buy a certain house even if you felt like you did your due diligence and you really liked it? What if you had a friend in cars who had a strong opinion on Tesla?
I don't own any crypto - but also don't give my family too much financial advice unless they ask.
If you had a relative in real estate would you not buy a certain house even if you felt like you did your due diligence and you really liked it? What if you had a friend in cars who had a strong opinion on Tesla?
I don't own any crypto - but also don't give my family too much financial advice unless they ask.
This! If BTC spikes and she didn't invest, you'd be hated forever. If it collapsed further, your opinion wasn't sought after. You had no idea what happened. Stay out of it.
Yeah, no, that’s not how I treat my loved ones, I’ll give them my best opinion as if it was my money (they’ll decide by themselves later). Are you telling me you wouldn’t try to dissuade a loved one from a scam, just because it’s not your money?
How much money are we even talking? If it's less than 10k (or its more than but she's still contributing to a normal retirement fund) then I wouldn't do more than lightly bring it up.
I am not long bitcoin or etherium but I definitely wouldn't call them scams at this point.
I'm also not sure why you think you are the only one with expertise on this. I am a programmer - so what if you are? You don't need to know how to code a blockchain to make a judgement on its future value anymore than you need to be a geologist to know the future value of gold.
I am not long bitcoin or etherium but I definitely wouldn't call them scams at this point.
I'm also not sure why you think you are the only one with expertise on this. I am a programmer - so what if you are? You don't need to know how to code a blockchain to make a judgement on its future value anymore than you need to be a geologist to know the future value of gold.
Why did I give the impression that I’m the “only” one? My sister is a psychiatrist who uses her computer for MS Word and Facebook. But for whatever reason you and the other people replying seem to think it’s ok to lose 10k for nothing. Would you invest in diamond mines, or milk farms, or wind energy, if you knew nothing about what you are doing, without consulting someone close to you who works with something similar? Sorry but you guys sound just like scammers who are drooling for new easy money to come into the “market”.
> I am not long bitcoin or etherium but I definitely wouldn't call them scams at this point.
What did fundamentally change that cause you to think it is not scam at this point?
What did fundamentally change that cause you to think it is not scam at this point?
Sustained value for several years (yes volatile), descent liquidity and markets to buy and sell without restriction. Inherent deflationary and decentralized technology whose algorithms are open source and available for review. A speculative asset yes, but a scam? not really.
> Sustained value for several years (yes volatile), descent liquidity and markets to buy and sell without restriction.
I think this is the key reason for many of these people. They think just because something has existed for a longer time frame, it has fundamental value which is absurd to me.
It applies to diamond, gold, commodity, etc investments as well. The demand is purely artificial and based on historical context than usage.
I think this is the key reason for many of these people. They think just because something has existed for a longer time frame, it has fundamental value which is absurd to me.
It applies to diamond, gold, commodity, etc investments as well. The demand is purely artificial and based on historical context than usage.
It's not about fundamental value. It is simply that it is usually a good bet that if something has existed for an amount of time it will continue existing for a similar amount of time. This mostly stays true even in the face of breakthroughs, disruptions or paradigm shifts. It takes time for the old paradigm to fade. Unless there is a clear sustained period after period decline, the thing will probably continue existing.
What sustained value? If you bought bitcoin 6 months ago you lost 50% of your money.
FWIW I totally agree with you on this.
Tell her to not invest any money that she is not willing to lose.
From what you observed (feel free to cite articles) there are many cases of collapses and scams in crypto — with her being late to the game there is a real risk to lose a lot of money. There is of course also a chance to gain something, but she can't know.
The gist of it is that it is her decision, but that she has to weigh herself how much she is willing to risk to lose. You can only give her information on your perceived state of crypto, the risks involved etc. But in the end she decides. If she just wants risk she could as well just buy a thousand lottery tickets.
If she wants a safe investment this is something else. Crypto is not a safe investment.
From what you observed (feel free to cite articles) there are many cases of collapses and scams in crypto — with her being late to the game there is a real risk to lose a lot of money. There is of course also a chance to gain something, but she can't know.
The gist of it is that it is her decision, but that she has to weigh herself how much she is willing to risk to lose. You can only give her information on your perceived state of crypto, the risks involved etc. But in the end she decides. If she just wants risk she could as well just buy a thousand lottery tickets.
If she wants a safe investment this is something else. Crypto is not a safe investment.
I could buy the house but I’d definitely ask their opinion first. You make it sound like uninformed opinions are ok, I disagree. Thanks for the suggestions.
> The fact that she did it without consulting me (the “computer guy” of the family, with an actual career in technology) is what bothers me the most
That sounds patronizing. I don't typically give my family members financial advice unless they bring it up first.
That sounds patronizing. I don't typically give my family members financial advice unless they bring it up first.
True, I assume OP's sister is an adult. If OP's sister did not consult him, it's probably because she didn't want to hear his advice. “computer guy” != financial advisor.
I would try to convince her to consult a financial advisor (I would even pay for it) and let her make her own decision after that.
I would try to convince her to consult a financial advisor (I would even pay for it) and let her make her own decision after that.
It’s not just financial advice, betting on crypto without understanding what it means is basically gambling, except the person might not be aware. If you are a specialist in a field, wouldn’t you advise them about the technical details of what they are doing?
Leave your sister alone, she doesn't need to consult you about anything. How entitled are you to think that just because you work in software you get to authorize the decisions that another adult makes.
Yeah but he has "an actual career in technology", which apparently makes him also an authority on investing.
What's weird, is that he poses two possible situations: a) she didn't know about crypto being a risky investment and b) she actively avoided his opinion.
Then he goes on to ask advice on a, but not b. But of course both can be true. Or none, but if she actively avoided his opinion, why would him giving unprompted advice now work?!
What's weird, is that he poses two possible situations: a) she didn't know about crypto being a risky investment and b) she actively avoided his opinion.
Then he goes on to ask advice on a, but not b. But of course both can be true. Or none, but if she actively avoided his opinion, why would him giving unprompted advice now work?!
No, I’m not an authority on investing, but I read about crypto all the time and I know the risks involved. All of you replying to this thread know exactly how risky it is for a person to invest on something as volatile as crypto without understanding what they are doing. Yet, you still want her to do it. That is exactly what I expect from scammers.
At most you can tell people that, even more but similarly as with regular stocks, you should only invest money you can afford to lose.
People talk about Bitcoin going down but S&P 500 lost about 1/8 of its value as well.
People talk about Bitcoin going down but S&P 500 lost about 1/8 of its value as well.
I don’t get to authorize anything; I want to advise her with an informed perspective. My sister is a psychiatrist who uses her computer for facebook and MS word. I ask her advice all the time when I need to talk to my friends about sensitive subjects. There is no harm in me giving her advice on technology-related stuff.
>did not think it was relevant to even ask me, or she knew it and actively avoided my opinion. Both situations are alarming.
You're right to be concerned, but maybe a little enthusiastic about influencing her decisions. I would gently urge her with what facts I could but maybe go easy with the big brothering. Sometimes letting people make their own mistakes beats the risk of chasing them away with overbearing guidance.
Of course I don't know anything about your relationship with your sister so YMMV.
You're right to be concerned, but maybe a little enthusiastic about influencing her decisions. I would gently urge her with what facts I could but maybe go easy with the big brothering. Sometimes letting people make their own mistakes beats the risk of chasing them away with overbearing guidance.
Of course I don't know anything about your relationship with your sister so YMMV.
Tell her to Google BitConnect, as well as Luna. Then have her go to the r/TerraLuna sub-Reddit, and see some of the stories.
Crypto isn't horrible, if you only put in what you're comfortable losing, have a long-term timeline, and invest in coins that have a history of retaining a reasonable value. Panic selling is a real danger, as volatility is the name of the game.
Crypto isn't horrible, if you only put in what you're comfortable losing, have a long-term timeline, and invest in coins that have a history of retaining a reasonable value. Panic selling is a real danger, as volatility is the name of the game.
You don't mention any details that would be a cause for concern and are throwing some red flags. Deep breath. It is going to be OK. There are worse things to be putting money into, she could be taking out loans from the mob and gambling, or shorting stocks. The worst case scenario here is just that she loses all of the money she put in.
Maybe start by engaging her in a conversation about the topic. What does she think about crypto? If she already figures its akin to gambling, like any other kind of speculation, then it is probably fine.
Maybe start by engaging her in a conversation about the topic. What does she think about crypto? If she already figures its akin to gambling, like any other kind of speculation, then it is probably fine.
> How would you go about showing someone you love the dangers and harsh reality about crypto investments?
Show her the posts about people committing suicide after losing everything investing into LUNA.
Show her the posts about people committing suicide after losing everything investing into LUNA.
Dont even do it.
Let her play the game, but tell her to use just 10% of the money she's willing to invest. Then she shall play it for 6 months. If she's profitable (which I don't guess she will be), then let her do it. If she is loosing money, she will stop eventually.
My sister is a psychiatrist who uses her computer for MS Word and Facebook. She will not make money out of this. She is not playing any games either. You and the other people who replied to this thread are really strange.
[deleted]
She is right, this crypto has nothing to do with technology, why bother asking a "computer guy"?
Better buy Magic The Gathering old cards
Tell her to explain the whitepaper to you.
That usually does it.
That usually does it.
Indeed. Although she's probably motivated not by the tech but by the stories she's heard of people getting rich.
Well, right.