You Are Probably Thinking About Crypto and DeFi All Wrong!
--
The volatility of crypto and the fast and enormous profits that some have made can make it seem like crypto and DeFi investments are the key to getting rich quick.
But think for a moment about other types of investment. The ones that were your best hope before you got into or interested in Crypto.
The stock market and real estate were the places you were told that your money could make money.
Learn to make money while you sleep or you will have to work until you die according to Warren Buffett.
Some people actually want to work until they die (or that’s what they tell themselves because they know they have no choice and it makes that reality easier to swallow).
Most of us don’t really like the idea of working until we die so we hope that one day we will figure out how to invest profitably in the stock market or discover some other way to “make our money make more money.”
Then you hear about people making a killing in crypto and DeFi. Outrageous profits abound for the people brave enough to learn the new tech and lingo and before you know it you’re expecting your investment to double every 30 days and anything that pays less than 3000% APY doesn’t really get your attention or hold it for very long.
You see the prices of your favorite tokens sliding down and you sh*t your bed because of it.
Wait a minute… just rewind a bit. What’s actually going on here? You are upset that a project you’ve invested a small amount of capital into hasn’t made you a millionaire within a few months? What planet are you actually living on?
Remember how property prices used to rise and fall? And the smart people figured out that you actually make your profit when you buy, not when you sell? The old days when you’d maybe have to wait a few months to see a profit and you’d be extremely lucky to double your investment within a year or two?
Everything moves in cycles. It always has and it always will. Prices go down. So do profits. Recessions happen. Inflation goes crazy and interest rates go through the roof making borrowing a nightmare, and causing people to lose their homes because they can’t keep up the repayments on their loans and mortgages. Then everything settles down again. Interest rates go down and it becomes cheap to borrow money.
If you’re sh*tting your bed right now because the value of your crypto is a fraction of what it was a few months ago (or days ago in some cases), this is probably your first bear market. Everything will come good again, you just have to be patient. Crying about it won’t change anything. Neither will shouting. It just takes time for the cycle to complete and start again. After the rain comes the rainbow. You know that.
Yes of course we all want to enjoy some outlandishly big profits as a reward for being early adopters and paving the way for the masses. But it’s just not possible all of the time. The market has to adjust and correct. Rebalance itself occasionally and when you’re waiting for your rewards and they seem to be getting further away each day it can be terribly disheartening.
I get it! I really do!
But please try and remember that crypto doesn’t exist in a vacuum. It’s part of a much bigger system and you need to zoom out sometimes to see the rest of the picture.
A perfect example of this kind of impatience can be seen in the backlash from Wednesday’s Furio update news. The proposed changes to Furio have got people angry. And I understand why people are so angry; they feel they haven’t been treated fairly. People who were “playing by the rules” and compounding their rewards with a view to hitting max wallet status within the next few months feel they have been robbed of their opportunity for earning some serious money.
If that’s you I recommend you try to see the bigger picture. All is not lost, there is still hope that you will recoup your initial investment and make a nice profit. Try and be patient and see what happens next.
It seems that everyone is an expert and knows where Furio went wrong. If you put money into it, you knew it was a high-risk investment and I sincerely hope you didn’t invest anything you couldn't afford to lose!
As I said in my article yesterday, the FDT are acting to protect all their investors and I am optimistic that it will all work out OK in the end. When will that be? Nobody knows. But please do try to zoom out a bit and get a better perspective. This is DeFi, it is a wonderful opportunity and it’s still a bit of an experiment. Everyone was happy being a part of the Furio experiment while it looked like they were all going to make an easy $300k quickly, but there are a lot of soiled bed sheets now that the parameters of the experiment have changed.
Patience is crucial right now. We need to see how the experiment unfolds. And in my opinion, we need to stop expecting so much and have a reality check.
I’m sure I will have provoked the wrath of some Furio investors so please, use the comments to tell me how wrong I am and what a sh*tshow Furio is 😜
IMPORTANT: Nothing in this article is intended to constitute investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits, or losses you may incur as a result of this information. Readers are encouraged to perform their own due diligence and research or consult a licensed financial advisor or broker before making any and all investment decisions. This content is intended for general informational and educational purposes only. Though the author strives for accuracy, the data contained within the article cannot be relied upon. The author may own cryptocurrencies and tokens discussed in the article. The article may contain affiliate links. DO YOUR OWN RESEARCH!
