With the current global conditions and the expected continuance and deepening of the economic degradation (for most of us), I think that many are going to discover or at least attempt to create new revenue streams. With the last GFC, Bitcoin was created and from there, all other cryptocurrencies were born.
While only a drop in the ocean as far as market capacity in relation to other investments, I believe that it will be a rapidly growing sector as it has very low barriers of entry in regards to other investment vehicles. I wrote a post a long time ago (that I can't find at the moment) about the trading fees of traditional investments and the fees alone would be significant in crypto for many people, especially if getting in on a project early.
Small amounts matter.
Small amounts invested consistently add up no matter where they are applied and on top of that, the keystone habit of investing itself can add to an awareness that will increase investments and keep the eyes open for opportunities to broaden the portfolio. Most of us ion the world do not have this habit by nature at least, nor by nurture - but it doesn't mean that we can't develop the processes later in life.
I think that in times of need, innovation happens because the willingness to change barrier is lowered, giving a low point in the fence to climb over and try something new. Currently and for the foreseeable future, times of need are going to increase globally on many fronts and a larger pool of people are going to have lower personal fences to climb over and I think that it will encourage a more active participation - rather than the reliance on the advice of others.
People are finding a new normal in many ways with the kids at home and remote working the only way for many to continue working. This opens people who had not considered it viable before, an opportunity to learn that it might actually suit them and then, what else becomes possible past that point?
With hundreds of millions of people now working remotely, if even a small percentage start to dig deeper into opportunities to add revenue streams by doing similar, many are going to start finding crypto and, give it a go. With the barriers to participation so low, it is possible that a whole new wave of "mom and pop" traders come into the markets to try something different, rather than losing their potential every 10 years through mismanaged economies.
For example, I wrote about a friend a month or two ago, who put a lump sum from a property sale into investments through his bank. Currently, he is down about 30% and it is going to take a long time to recover. At the time, I told him to seriously start looking into crypto with a fraction of his holdings, as a hedge. After the experience he has had, he is now looking deeper.
There is risk in all investments , but one has to look at the potential upside in relation to the potential loss, and then accept the terms. However (in my opinion), financial loss is easier to accept when the decisions are made personally, rather than through the proxy of a broker, as it becomes a learning experience and one can justify decisions as they happened on the fly, and then apply hindsight. When through a proxy, there is always the niggling problem where you can't be sure that the broker worked in the best interest of you, their client.
If we look at it from the perspective of bank earnings, the banks always outperform their clients as they are a middle man that gets the information before the client and takes information from the client, so they know what is going where and when at a much more sensitive level than others. They are also invested into the vehicles they recommend their clients invest into. It is no wonder that not long after a recession, banks see record profits.
When the decisions are made as individuals, the losses are easier to accept because one knows all factors involved into the made decisions, and the gains feel much better for the same reason, it is personal. I believe that taking responsibility is very much an addictive process as while there is downside, the upside feels better too.
I think that for many who have found crypto blogging, they have also learned a lot about investing and trading, as well as taken more direct control of decision making through the entire pipeline of the investment, from the effort into the content creation, considering game theory within the community, the options of buying, selling and trading and of course dealing with the daily psychological and emotional roller coaster ride the experience has.
I think that while many fail, those who have taken an active role in their journey have become stronger people all up - people who are increasingly skilled at dealing with uncertainty and volatility, on and off the platforms. They also have access to a community of similar people from diverse backgrounds that they can interact and leverage to learn from and keep them centered while much of the world panics.
In my opinion, people who take an active role in their decision-making rather than proxying it off to others generally have a better experience in life, even if it doesn't amount to more money. I think active participation in life brings meaning to what could otherwise easily be considered quite meaningless. I think under current conditions, a lot of people are going to discover that much of what they have been doing has been counter-productive to the outcomes they aimed for, even though they were "intuitive" and by that I mean, a programmed response.
For me personally, I have learned a great deal over the last three years and have changed many aspects of my life. Blogging for me has become a keystone habit that puts pressure to develop on other aspects of my life in the same way consistent exercise will commonly encourage a better diet and increased social activity - this compounds the value of the initial out lay in time and energy.
There are opportunities to compound values everywhere in life, but many are unwilling to put in the initial startup capital to take advantage down the road. But, small amounts matter, whether it be money, effort, kindness or any other resource or trait we might value as people and communities. If you want a certain experience in life, the investment needs to be made in a way that can achieve it.
If you proxy your decisions to others, their decisions become your outcomes.
Taraz
[ Gen1: Hive ]
Hello @tarazkp,
Interesting perspective that you ask us. I agree with you that taking financial risks on our own gives us a sense of control of our destiny, for better or worse based on the decisions we make.
However, I am afraid it is just a passing illusion on shifting foundations. Let's look around. The system establishes the rules and most of us are very far from visualizing them, much less fully understanding it because we do not know what is behind the scenes.
If I could, I would fly out of the system but unfortunately the task is not easy at all. At the moment, acting in the crypto market, either as an investor or as an individual blogger creating interesting content, is just an attempt to escape within the branches of the same system.
In the meantime, let's constantly think and evaluate how to get out of the impasse in which we live.
Ah, this is the reason that most people get upset on Hive/Steem, as they must confront more of the economy than they have ever had to deal with - and it all seems unfair. It is a great place to learn and pretty much, that is the only way a better more tenable system can be discovered and created.
Human tend to be more serious when there is trouble since they are willing to take up any form of road even though crook, I'm not talking about the negative part of the crook but the zeal to make better is surely be imbibe.
There are lot of way in which we can certainly invest in ourselves, beat the hurdles and make a right decision. Now that the world is experiencing setback economically, I think it is now that we channel our investment in another direction just like you have said. Cryptocurrency risk is worth taken as one will be sure and see how he is losing or gaining and vice versa.
Seeing and feeling it is an important part of the process, negative and positive.
Any experience in our lives is invaluable. Moreover, the negative experience, it motivates to study the issue much better than the constant positive.
As you wrote earlier, diversifying risks is ARCHI important in investments.
I have asked many people about what past experiences define them as people today, many of the answers are the hardest struggles.
I have conversations with people regularly about the potential of crypto and that to me, the best part of it is having complete control of my funds. My crypto journey has introduced me to basic concepts of inflation, money printing and all those other variables controlled by the Central bank (of Nigeria), and I've come to a conclusion, they're absolutely inept and don't make decisions with my interest at heart. Spreading this gospel to people, basing arguments on facts and subtleness doesn't actually bring the positive response you'd expect from people constantly being raped by the govt.
I've found that a lot of people are still clinging strongly to the sheepish mentality of allowing their government "regulate" their funds. Then go around to wine about the ineptitude, instead of making conscious decisions to improve the situation
Do you ever find people who think they have that now with their bank account?
Yup, very often actually. According to these guys, they "understand" banks more than the crypto market.
I get it occasionally here as most people do not understand even the basics of how banks operate or make money.
Hopefully this will be one of the good things to come out of the mess :D
Thought people preferred to be able to blame other people when things go wrong instead of having to admit they did something wrong XD
Yes, but they don't accept it, they blame. People are more forgiving on themselves ;D
Necessity is the mother of invention, so they say. I really think this is a time of opportunity - be really interesting to see the new world order that arises. Hoping it will sway towards things that benefit the environment! Gonna laugh when all those people who have become overnight gardeners give it up as soon as the cogs start turning again.
I didn't even get the chance to start growing anything yet. How long does weed take to harvest?
I am going to find the people who have rooms filled with toilet paper amusing once the bugs start building homes in the rolls :D
HAHAHA - yep. YOu can't make riches out of toilet paper - only shame for being an asshole. Perhaps we'll find toilet paper very, very cheap at boot sales in the future.
Get off the keyboard and plant some seeds - just in case. Hey, you can use the toilet paper to start them off.
At the moment, we are still in an apartment building - it will have to wait til next week :) One good thing in Finland is, there are 200,000 lakes with fish in them and berries and mushrooms grow wild.
always enjoy your perspective on it all...
It is nice to hear :)
This has been posted to Twitter to increase Hive backlinks. Share there too if you choose.
Very good point, that of the decision to delegate decision-making quality to others.
Your publications are extensive and well reasoned, thank goodness they are valued. I don't publish so often because sometimes my contents are undervalued; it takes me several hours to make them... hahahaha...🤣
Good article