Modern Crypto is damaging, negative and spoils people, it has definitely spoiled me.
Remember back in our parents' time - or if you are a Hiver boomer, your time -, where one of the main investment foundations when starting a business or putting money into something was something along the lines of consider that the first few years are for building the business and setting solid foundations, you will only start getting a return on your investment a few years after that, and you will only start generating actual profit after that.
Do you remember hearing that? I sure do, that's how my dad raised me. I am 33 years old and I grew up hearing everything about starting your own business, how to deal with the investment, how to generate profits, how patience was the key... yada yada.
Crypto on the other hand, has spoiled me, it has ruined me forever.
I can never go in and hear about an investment opportunity from a friend or acquaintance without looking at the P&L statements and the one year, five year and ten year forecasts without thinking dude, why would I get a 100% ROI in five years when I can just invest in crypto and get a potential 100x in a year?
I know, I know, I'm actually pretty stupid for thinking like this, and I know I shouldn't have this mindset. Not everything money-related can be compared with crypto gains, and not everyone can invest in crypto. Crypto investing takes away years from your life with every crash and the adrenaline and endorphin you get from a good trade only lasts for a while until your body starts asking for more.
Some people are meant to invest in solid, trustworthy, familiar setups, and that's completely fine. I just don't see myself putting in 50k USD into a friend's music school idea that I am pretty sure will be a huge success and I will 2x my investment in the span of five years. I just can't do that knowing that those 50k can potentially be valued at 500k in that same span of time if I just buy a solid crypto like freaking Ethereum - let's not even get into the intricacies of buying an altcoin with huge upside and more risk like Hive or Leo where my investment could 100x provided the projects deliver.
It's just the way things are nowadays. Why would you invest your life savings into a mortgage or buying some land when you can invest in unicorn-phase startups that could (big could by the way) give you a 1000x return of investment?
In real life it's absolutely normal to wait for YEARS for your investment get just to break even point before you start making any money from it, while in crypto you're a brain damaged loser if you are not 100x your investment in a mere few months.
That's just how the shitcoin casino and the crypto gains makes you think, and we should all avoid it, as hard as it may be.
But you see, this exact mindset is what makes us be reckless and act careless when it comes to assessing a crypto project or a blockchain based token, and it is exactly because of this spoiling that we only look for those boom or bust opportunities. Some people just can't deal with patience, continuity, discipline and patience (yes, I said that twice).
Having a long term mindset might make an investor lose some short term huge gains, but the amount of risk is inversely proportional vs potential value, and most of the times this proportion is just too much, too bananas to be worth it. This long term mindset that makes you miss some huge gains is what makes other investors with more patience and more research is what makes them invest in actual projects with value, potential, use cases and solid foundations. But that requires time.
If you bought DOGE and you became a millionaire you don't deserve it, and for every case like yours there are thousands that went through the exact opposite scenario, and that 1000x from buying (and holding) DOGE means you're an idiot, a stupidly lucky (and filthy rich) idiot, but an idiot nonetheless.
Crypto has spoiled us by making a thing out of this kind of success stories where an idiot gets lucky and makes it. A shitcoin back in 2018 made you 100x those 250 bucks and now every investment you make, you do it with a mindset of short term gains that make up for all your other losses that you acquired by approaching crypto investing with this very same mentality.
DeFi is doing the same. 30% APR? Lame, give me 90% with auto-compounding farms or else I'll miss on potential gains... It's no wonder that shitty projects promise gigantic returns and end up rugging their users, because people are desperate on finding that moon project that will allow them to finally make it at 33, which eventually leads to these people lose everything to a crappy token.
Every scammer and crypto influencer is shilling the next big thing, and people buy it because just like the shillers, they are desperate to believe this will be it, but damn, are people really that naive? Short answer: Yes, they are, and that's why influencers and crypto shillers are so popular around the crypto space.
Crypto has spoiled me, and I'm trying to break this mindset to be able to invest with more brains than spoils, what are you doing about it?
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You sure hit a hard nail here.
Hive has spoiled me in particular, imagine the Leofinance apps that says
Earn your first crypto in 5mins.
Sure people want to make it in no time and we have all forget true business lessons you have pointed out.
Imagine for how long i have procrastinated on having an offline business just because crypto has spoiled me with all these returns regardless of the risk.
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I really struggle putting my money into a stock hoping for 20% gains or a decent dividend yield of about 6% lol Crypto crushes those yields but it does come with risk. I'd have to say the risk however isn't all that much higher than the stock market anymore and that's why I'm pretty much fully crypto.
I understand how you feel, dividend stocks use to look so good, but now they look pretty lean..
:(
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Well owning some property makes sense - at the very least it means you have something to play around with and you can't get booted out by someone else!
I like the tax deductions, fix it up and refinance equity and the not getting booted out part.
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True, property makes sense... though here in the US, you better pay the man those property taxes he asks for, or else you won't have something to play around with.
Well there is that - Property does tie one down which certainly has its downsides!
Oh, but it also has many many perks! I enjoy mine so much... and I know it'll take care of in in the eventual apocalypse! (you know, if something drastic happens)
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You are not the only one.....:)
But l think it still promises a great future.
Never got rich off a shitcoin... but I sure feel you when you talk about APR!!! After numbers well above 100 in DeFi, it's tough to go back to some sort of 10 or 12% average on other investments!
I started investing in dividend paying stocks a few years ago and it's nothing compared to some of these crypto days...
If you think that your friends music school is a good project, do it!
That's just the thing though, while it may have spoiled a certain mindset, defi, has opened up the doors to creativity in the world of finance that wasn't accessible to a kind of open source platform that can be approved upon by the thinkers and maths geniuses!
See, I think of crypto as a long term game. I started back during that bull run in late 2017, so I was there for a lot of the FOMO and hype, and yeah, I had hope about it, but I've seen enough get-rich-quick scams to not be the type to throw everything into a longshot. I think you need a gambler's mindset for that. Everybody who freaks out with every dip in the market, I'm always like Y'ALL. STOP. It'll happen again three times this year, and next year, and in between you'll be giddy because something mooned for a little while. I'm not thinking about "I'll be rich by next year" because I know that's just super unlikely; I'm thinking about "as long as the long term trending is good, eventually I'll have a nest egg" or "as long as Hive keeps getting new projects built on it, that's good for the ecosystem" or "hey if I'm supplementing my income, that's a win."
I'm not wholly immune or anything, like I used to listen to this one crypto YouTuber who was heavy into Bitconnect, and I didn't immediately go "oh no that's a scam" but then when that all came to light I wasn't surprised about it either? I did stop listening to that YouTuber, though. I feel kinda bad for him, because I think he genuinely lost a chunk if he was telling the truth about his investments, but I didn't trust his advice anymore. ;)
I think a good variety of investments are good. Some safe, some high risk. Too often I see people embrace those potential high returns, and even use the words "High Risk" and have zero understanding that when you have the most potential for very high gains, you also have the most potential to go down in a burning fire like Luna.
It always amuses me when people are super angry and act like they have been cheated when a project fails, but they would have gladly pocketed the 100x gains.
Anyway, it's good to have some safe assets and risky ones as well.
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nice post estolling the virtues of projects with utility, development and great promise.
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