That great thing about new technology is that it can be disruptive, so disruptive that it rattles the establishment completely. Gandhi had a phrase : ” First they ignore you, then they fight, then you win”. I see Bitcoin in this regard, because it was first considered to be a play thing by the establishment, then they fought it, and now then trying to figure out how to use it. But the thing I love about this tech, is that you can be a novice investor, or an economist with a noble prize and you’re both on the same level.
I heard an interesting remark by an economist that if seasoned investors don’t understand cryptocurrency, then the a novice investor should keep clear of it. That is quite a self serving remark. As I see it, seasoned investors have been reduced to the level of novices with respect this new technology, and that means he who puts in the work understanding and developing this space will be get the rewards. Cryptocurrency has indeed disrupted the traditional investment industry.
Generating wealth in the Cryptocurrency space really comes down to being able to see value. If we know what problem cryptocurrency like Bitcoin is trying to solve, and it’s a problem worth solving, then investing in it makes sense. But it’s important to emphasis, in my opinion, investing not speculation. And hence, why something like HODLing is a great investment strategy for a novice. You may not know the complete details as to why cryptocurrency is important, but you know its solves a real problem, and hence you buy and hold for a long time. This investment strategy has worked out well for me.
There was a study done where it was shown that a monkey randomly picking stocks did a better job than a seasoned investment professional. And yet, these are the guys who want to advise the public on the safety of cryptocurrency, on regulation of crypto and usage of it; the same guys who brought about the Global Financial Crisis. Nope! I think as a novice with some common sense, I can do just fine.
In the late 1800s, men like Carnegie, Gould, Rockefeller, Fisk and Vanderbilt became extremely wealthy because they saw value before its time and acted on it. They didn’t wait for an economist or investment professional to tell them what to do. Admittedly, they’re not role models I look up to, in fact I dislike a lot of them and what they did, but the fact remains, they saw revolutions on the way, and they acted accordingly. As people living in todays’ age, things like cryptocurrency and veganism will revolutionize the way we live for the better. We damn sure need to insist we partake of this.
Everything here is my personal opinion and is not investment advice.