A calling for a brave new world!
*WARNING: Not financial advice and only the views and opinions of the author. *
We live in truly uncertain times and I think that right now many people are in a state of fear as investors. My question is what will the world look like in 5 or 10 years time and how can we make sure that when this liquidity crunch hits we aren’t on the wrong side of the table.
A few exclusive clubs that many young investors should attempt to be a part of would be the 1 BTC and 32 ETH club. In my view long term investing should be about setting yourself up in a unique position that is different from most others. The crypto industry is full of people that admire the technology but don’t truly appreciate the impact this tech will have on the world if it accomplishes what it has set out to do.
If these two technologies succeed (e.g. they moon before they get regulated to death) their market cap would be so high that a “risky” investment could pay off for many generations to come. This time of fear is really the coming together of a 90 year long debt cycle and a once in a generation moment. How much risk your willing to handle really depends on your age and ability to HODL that amount of crypto without getting weak hands. The younger you are the more good years of your life you have to work off debt so the risk level can be higher. That is why in my opinion many millennial's are drawn to the lure of crypto.
What does success look like? Well for Bitcoin which is taking on the monetary system its about working its way through this timeline but we are so early on that by investing now before it is a reliable stable store of value or widespread medium of exchange the upside potential far outweighs the downside risk. The market cap of bitcoin has so much room to grow from here so its still early days.
Ethereum, the smart contract computing platform that with 2.0 upgrade will solve many scalability issues through proof of stake. We are so early on that we have yet to migrate to the protocol of PoS yet and so in my eyes you have a project that has already proven its potential with being an ecosystem for defi ( decentralized finance) but is about to evolve with some of the brightest minds of our generation behind it truely changing the dinosaur stone aged way that we have been doing finance.
So in conclusion, we all havea choice. Take action or inaction, you can decide to be proactive or let opportunities slide by. There is no way to avoid risk, cash is risk just like any form of investment is a risk. So in my humble opinion why not subscribe to a brave new world that is far more transparent and has the potential of drawing the veil and getting us closer to the dream we all have of living in a utopia.