SURVIVAL OF THE FITTEST vs. LONG-TERM GROWTH & SUSTAINABLE INCOME
Alex Becker in his recent video very adequately explains HOW crypto investing works and HOW and WHEN he will start selling his portfolio. https://www.youtube.com/watch?v=7KaRdNPEoI4&t=3s
The terrifying and paradoxical element of Becker’s message is the simple fact (which he acknowledges) that many or most crypto investors (including many of his followers) will most likely LOSE MONEY.
This is because IMO Becker’s belief and hence his investment strategy are based on the (mis)interpretation of Darwin’s theory of evolution, famously promoted as “Survival of the fittest.”
In short, Becker advocates that for the FEW to win the MAJORITY MUST LOSE.
IMO* it does NOT have to be this way.
*In my opinion
First, expanded research suggests that Darwin advocated “Survival of the fittest communities,” and not individuals. This changes everything, as the risk of survival is spread (diversified) across the whole community, not one lonely investor.
Second, Becker established himself as a very competent selector of THE BEST performing crypto projects. IMO the truth is somewhat the other way around. Although Becker is a very smart investor/entrepreneur and possesses an in-depth understanding of the markets, he has built a substantial and very loyal following. So, rather than Becker having to choose the winning projects, I believe the projects that BECKER chooses do well BECAUSE he chose them (and his followers ensure the pump).
PS: In my experience, anybody taking advice from a popular influencer is always 2 steps behind authentic opportunities.
Third, and perhaps most important, life is teaching us that “SHIT WILL HAPPEN!” Nobody can predict with certainty when and how things will turn sour. However, although we can’t always control what happens in the world, we can ALWAYS control how we RESPOND to what happens in the world.
Becker's response (strategy) is designed to beat the majority of players (investors). In other words, his game plan is WE WIN, AND THEY LOSE.
I believe I have found a CRYPTO INVESTMENT STRATEGY that enables whole communities to prosper while enjoying long-term growth and sustainable income. We can have the WAGMI* scenario.
*We are all gonna make it!
LET’S SIMPLIFY WHAT BECKER IS SAYING:
We lose money in 2 ways:
- By selling the dips (and then buying back more expensively).
- By missing the final dump (and watching our portfolio evaporate through the bear market).
THE CHALLENGE
CHALLENGE 1: How NOT TO LOSE money on dips?
ANSWER: We don’t sell. This can be emotionally very tough.
CHALLENGE 2: How NOT to miss the final dump?
ANSWER 2: By not having to sell. But then what is the point of investing, if our project will be worth near zero?
IN SUMMARY
Nobody knows what the markets will do, but over time the markets always go up! Successful investing is, therefore, NOT about predicting the markets, but about MANAGING PROBABILITIES. In other words, successful investing is about RISK MANAGEMENT.
By not trying to guess the markets and instead focusing on adequate risk management, WE WILL WIN!
In PART II. I will lay out a Smart Investment Strategy that delivers LONG-TERM GROWTH and SUSTAINABLE INCOME without the necessity to sell the dips and/or catch the final bull market dumps.
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All views expressed are my personal opinions. Nothing in this post constitutes financial advice.
Enjoy the journey, it’s an incredible time to be alive ❤