Just after we got the loan for the house and an additional part to cover some of the renovation, I suggested to my wife that we take some of it and put it into Bitcoin, as we won't be needing it until the end of the year and I felt that the bottom was in. That would have been two BTC worth bought at around $4000 each. She said no.
I was talking with a colleague this morning about this and he brought up how women are more risk averse than men and that most direct investors are male. For example, in the US, less than 5% of VC investors are women. There are many reasons for this of course, including cultural history and the endurance of generational money, but that is still a very low percentage in 2020. Because of the way money attracts money, when it comes to the future empowerment of women, women are likely going to have to start taking more risks and investing more broadly.
With respect to the conversation I was having, I mentioned that I think that crypto (he has got into Bitcoin this year) is an opportunity for women to get into investment in a way that reframes the potential for loss. This is especially true through Hive as rather than direct investment, a person can earn their buy-in and while this might take time and effort, it doesn't detract from other sources of income, meaning it is extra. The exposure to risk is reduced as what would be lost is that time and effort.
Now, for many users, earning significant amounts from earning crypto on Hive or any of the numerous platforms out there is unlikely (thouhg I have seen quite a few do pretty well over the years), but that isn't what the main value of participation is. What is important is the development of mindset, opening oneself up to risk, facing it, surviving dips, discovering alternate possibilities and generally, learning that despite our real world conditions and preferences, there is the potential for all of us to start affecting our investment level in a way that is more comfortable to our own personality.
I would suspect that on Hive, there are a higher percentage of female holders and investors than there is in the real world economy, many of whom are in poorer countries and might not have access to any kind of investment vehicles at all, let alone the capital required to participate in the investment economy. While this doesn't mean that we will all be wealthy, but at least more of us are starting to participate in areas where traditionally, only the elite could play.
I don't think that it is a secret why many of the investors are male, due to the general level of culture for the last couple millennia, but I also think that the higher average risk aversion that many women have is going to affect all kinds of personal opportunities, as well as have cultural ramifications on society. Women tend to be risk averse in many areas, including their career paths and of course, there are social pressures of various kinds that affect all people in different ways.
However, when it comes to social media usage for example, there is generally a 50/50 split of users and depending on the platform, women tend to edge ahead. On Pltforms like Pinterest, 70% are female users. This means that if the digital economies start increasing the potential for users to earn from the platforms, women are in a good position to take advantage and at least in this arena, start from a level footing. We see this on Hive with many women among the most active on the platform, but will it is hard to know if it will extend into the investment potential, as for now there are people also buying into Hive - which based on the risk version profile, would likely be men.
There are obviously a lot of complexities as well as emotional intuitions in this area, but I think it is worth considering as a point of value for Hive, that there is a far greater equality of opportunity for investing from the creative perspective, as it doesn't mean risking what is already in the wallet. It is far harder to invest money that is already in the bank account, than it is to have it invested before it ever reaches that account. This is why automatic investment schedules are valuable for many people, as it removes the "it's mine" opinion, by taking it out of sight.
Out of sight, out of
mindmine.
I was saying to my colleague how I got into investing through creating content, as I didn't have anything available to invest from off platform. I never thought I had enough to invest, but once I started exploring the potential of crypto and investing itself through Hive, I was able to find ways to increase my investments, by cutting other less important parts out of my life. Essentially, I jigged my consumption profile by reevaluating components and applying a new hierarchy, one where investing was bumped up the list, and something like entertainment or useless consumption was downgraded. This meant that rather than going without, I actually went with, as what I chose to spend my money on was more valuable to me than the alternative.
The current design and state of the global and local economies are not suited to new investors being able to make adequate gains, as the large investors will always pull a greater return from the pool than the small. This means that economic history is a massive driver of the wealth generated from investing. This makes it quite unattractive for many people, as it is not only going to be a low return, it is an increasingly difficult struggle to gather financial availability to invest. By pushing the investment to an earning for participation, it allows for many people to get a foot in the door and at least some of those will extend it further. The more that do, the more that can and will.
I think that many people in this world would like conditions to change personally and collectively, where we are able to not only live more valuable lives, but actually benefit from that value, rather than have it sucked into the vacuum cleaner of the 0.1%. To do this, the system has to change, but due to the design of the control mechanisms, change isn't going to come voluntarily. This means that we have to invest ourselves into changing the system and I believe, that replacing the system with something far more effective at distribution through incentive, is a good direction to go. It might not be the end solution, but it is heading the right way at least.
We are all risk averse, but we might want to also consider what the greatest risks to us are. I think that ownership brings stability and security, but to own, we have to invest. It might not be comfortable, it might not be in our nature - it doesn't mean we shouldn't, couldn't or won't.
Taraz
[ Gen1: Hive ]
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It's funny, I've had the same conversations with my wife. Women are definitely more risk-averse than men. And that makes sense in an evolutionary context.
But it's good to have some brakes put on from time to time. It saves us (somewhat) from taking stupid risks. The challenge is finding the balance.
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Yeah for sure. I also think it is good to have some accelerator too. We can go the other way and get stuck in habit and fears that hold us back. I guess in a relationship, it is good to have a little of both in each person to help each other overcome and be stronger individuals and a couple.
As the only girl in your comments, I would like to contradict what you say, but no. Everything you say is true. Women are more prudent when it comes to risking the money we have, men are more risky. There are different savings priorities for being a man or a woman and some of that is because women have a more developed "emotional memory", which helps to remember losses more emphatically and for a much longer time. If a woman invests and has put effort and time in that investment and loses, swear, she will never forget it. Maybe we are more willing to invest in less and safer businesses than you are. This is an excellent topic for discussion, @tarazkp.
I think that you are right in many ways Nancy, but i think that women need to take a step back and reevaluate their approach, because it is costing them. If you consider that most women believe there isn't enough opportunity for them in the workplace or they are underpaid, it would be prudent to start being owners, instead of employees. There are a lot of things to consider in this, including biology, but at some point, we have to take responsibility for our own lives.
I think this is true - and perhaps in more "real" business - something that can be imagined easily. Bitoin is hard to imagine.
You missed a financial opportunity but your wife will probably feel more comfortable whenever you tell her you are thinking of putting some amount into crypto or explain to her the opportunities of this world.
Learning by doing is what Hive gives you. It gives you the opportunity to earn, exchange, risk, stake, and learn from all the great writers posting what their experiences are in this fascinating new industry. All that, starting with posting and engaging with the community.
After four years, she still thinks it is a scam ;D
People who actually embrace the opportunity build up very good experience and understanding of how the world of money works and perhaps more importantly - doesn't work.
I agree, part of the value you gain when you enter the crypto world is the monetary policies you end up learning too. They all affect us but before you interact with crypto you do not pay too much attention to if you even understand them.
This
Made me laugh, and think of Warren Buffet. Are they related? LOL
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Oh, these women ... Although, we are without them = 0
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I understand her fear - I should have just done it. But, these kinds of decisions are made together. If she had been listening and learning here for the last few years - she would have taken the opportunity too.
So you missed a potential 40 k windfall.?
Ouch...
I am kicking myself for not taking some risks back when I had the disposable income.
Does that mean I may be a woman... LoL
I have always suspected that is where the "Krazzy" comes from
Haaa... You got me.
The gender reassignment surgery was brutal. Crazy (mentally ill) to do that. (imo)
I just wish I had thrown 1k into the mix for a 4X uptick.
I remember the time when Bitcoin was $ 4000. Then there was a huge panic due to the unknown caused by COVID.
Personally, at that time, I was thinking about a will, and not about investing, only completely stupid and wise people then managed to invest in Btc.
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I think your wife was right in this instance. You couldn't possibly have known that Bitcoin was about to bounce hard. Nobody did. If you had lost the money, you'd have been in trouble.
Investing money one cannot afford to lose is never a sound policy.
That said, it is generally true that under the current macroeconomic conditions, risk aversion means a guaranteed loss. Money printing at the scale we have see this year does that. We don't have sound money, yet. Bitcoin is a candidate for future sound money but it is so volatile that you can't invest any money in it you are forced to spend at some predetermined time period in the future.
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I like this:
I think it’s very sound advice.
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I don't think so. It was always going to be the bottomish - unless Bitcoin failed completely, which wasn't likely to happen. At the time, we could have afforded "to lose" it as we would have had almost a year for recovery into what was already looking like a bull setup. We could have also adjusted if it had dropped further - but say it halved again in price from there, the most we would have lost is about 3000€ - which considering the value of the entire renovation, is a kick, but not catastrophic.
And the problem is "playing it safe" is saving - and without market/ money understanding, it feels like the right thing to do. Understanding crypto for example, would increase the odds that a person would see the cost of inflation. Literacy goes a long way - but you have to learn to read, which takes effort.
Not likely but it was possible. Institutional FOMO had not been a thing at the point. The pandemic had derailed the entire economy. The discussion at the time was whether retail investors would be forced to pull out they money as mass unemployment loomed.
That's good to hear.
Bitcoin has been battle tested to a greater extent. Right as we speak, it is proving to be a bet against the current order Wall Street seems to be willing to make.
The cost of not playing the game right now is really not a cost in terms of rising consumer prices but an opportunity cost. The excess money printed seems to stay within the financial market without affecting consumer prices very much. The only impact seems to be through persistently low interest rates and governments being able to take on unforeseen levels of debt allowing them to meet their welfare spending obligations. Other than that, the cost is mostly invisible.
Interesting,
I never thought about gender significance of risk aversion. But I know my barrier to crypto was risk aversion. But once I cleared that barrier I felt free to experiment with Staking coins, Masternodes, and eventually DPOS. Additionally, once I suspended my disbelief and jumped in, I didn’t allow small things like having someone run off with all my coins deter me from trying something new.
As for Bitcoin, don’t beat yourself up to much. Shoulda-Coulda-Woulda are popular mythical words to describe in retrospect what you wish you had done. But it’s easy to see numbers retrospectively, it’s much harder to remember other factors which went into your decision.
Enjoy your new house.
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The factor shares the bed I sleep in - so it is an important one ;D
I have missed many opportunities along the way - this one was one that I was close to certain was a good one - but, in this, it was a decision for two and required unanimity.
@tarazkp, Are you struggling with your beautiful wife over investing in hive?
Women are always right, it is unrealistic to fight with them :)
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I agree with you!
Not really. This was about Bitcoin :)
You are absolutely right, only investors can stand the test of time, my little investment in BTC has yielded some profit for me, i would hve spent the cash if it were to be in my bank account but M glad it is in my ewallet. Your article has elated my mind to invest more . Thanms for this write up
I think women might be more risk adverse generally, but only just. My best ex was adverse to any risk, and personal financial security was her primary motivator. My friend from San Diego is a regular Forex trader and specifically watches and trades the Asian stock markets. Which is a good thing, I can text her at 0400 knowing she'll be up and watching.
The only way to really quantify risk is through hindsight and that does nothing for going forward. To quote the Daily Racing Form: Past performance is not an indication of future ability.
I think you are absolutely spot on about the women being ready and willing to work for their stake as much or perhaps even more so than men. There is certainly a much higher % of female investors in Hive than anyplace else I can think of..
Fascinating comment..
Why?
I have a daughter, I can’t get her interested in crypto.
Anything special here for women?
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Yes, I think there is. Low risk. For the risk adverse, (men and women) Hive offers a platform that can be valid with no money expended. It takes time and effort surely, but can be used and profited from with zero out of pocket.
The other thing that is special for women is equality. Hive stake and quality content is the sought for goal no matter the gender. I see a fair amount of participation from women from societies that are usually not conducive to women's rights. I think that is because the participation is from the home, no public persona needed.