The Untimely Death That Changed the Crypto and High-Tech World
Dedicated to the Memory of the True Hero of Our Time
People have been arguing for a long time about who is their best friend among pets: dogs, cats, songbirds or, for example, aquarium fish. This dispute is eternal and, in principle, unsolvable. Initially, people domesticated these animals for the obvious practical reasons. But now each of these animals satisfies less utilitarian human needs: dogs satisfy the need for a close friend, cats reflect the craving for psychological comfort, songbirds fulfill the desire to enjoy the sounds of nature, while aquarium fish make it possible to enjoy the quiet and calm contemplation of wildlife at home.
Until recently financial market enthusiasts have to some extent been at a disadvantage. During the World Cups, animals — octopuses, elephants, and cats — have already been used as soothsayers. Still, sports are not directly related to financial markets, and it is not always convenient to keep an octopus or an elephant at home. Fortunately, this issue seems to have finally been resolved!
In June 2021, a hamster, named Mr. Goxx, started trading financial assets in earnest. To be honest, I like hamsters from the point of view of a classic investor. They are strictly solitary creatures who have a real passion for food hoarding. They also do not tolerate the presence of other individuals of both their own and the opposite sex to the extent that, if housed together, this may lead to acute and even chronic stress. All in all, a hamster is an ideal character for the role of a successful misanthropic capitalist in the spirit of Uncle Scrooge from a Dickens story or a Hollywood cartoon featuring Donald Duck.
Furthermore, Mr. Goxx was trading the most volatile and unpredictable assets: cryptocurrencies. He was doing that from his “high-tech” office (see Picture 1 below) and was enjoying the appropriate media support (see Picture 2 below). Having completed a short course of study, he started demonstrating returns exceeding those on Bitcoin, the NASDAQ 100 US Technology Sector index, and the Standard & Poor’s 500 index of leading US public companies (see Picture 3 below). His performance was also by far superior to the returns reported by the technology world “guru” Cathie Wood (Ark Innovation), the “patriarch” of the world of finance Warren Buffett (Berkshire Hathaway) and, of course, the returns on the US Banks index (BANK). As we know, it is becoming increasingly difficult for banks to compete with “high-tech entrepreneurs” who are relatively free from the watchful eye and strong, friendly embrace of financial regulators. Some Twitter users even suggested that Mr. Goxx could be the top contender to become the next head of the U.S. central bank…
Unfortunately, I lost track of the new fluffy king of the world of finance, so I had no idea how he was doing. A deepening turmoil in the crypto and high-tech markets over the past year has distracted me from following his life. That was my biggest mistake. Only recently I have realized the essence of what was happening…
Incidentally, I found out that Mr. Goxx had passed away last November. This was reported by all major media outlets: BBC, Fortune, Business Insider, Yahoo Finance, and many others. But, most importantly, it coincided with the time when the prices of crypto assets and high-tech stocks reached their highest peak ever. After his untimely death they began collapsing. Now, one year later, it is impossible to say whether they have reached their bottom yet. This comes as no surprise. Mr. Goxx was totally ignorant of what he was doing, but still completely confident in his abilities. As we all know, ignorance and confidence are the essential qualities of a great leader. Therefore, despite his small size, he was rightfully a giant among the current generation of charismatic visionaries of the world of finance (see the picture above). Having lost its leader, the industry is still in shock, not knowing what to do…
In reality we are not talking about the hamster but rather about us, humans, of course. If you are told that someone’s investment portfolio during the last quarter, six months or a year have returns exceeding those of many professional investors or even Warren Buffett, then this can undoubtedly be true. But as you can see, in the short term even the hamster can show investment returns outstripping the market. This once again proves that in financial markets short-term success is not a guarantee of long-term investment triumph since it can reflect both skills as well as pure luck and a confluence of circumstances. In the long term, knowledge, experience and, most importantly, discipline will also be required, reflecting the fact that the life of an investor, like any life, is a marathon.
Unfortunately, Mr. Goxx will not be able to help us in achieving our long-term goals because the average life expectancy of hamsters is only between 2 and 4 years. But Mr. Goxx was not aware of this fact. Maybe that was why, being free from agonizing reflections on the meaning of life, (for an hour) he became the real king of the world of finance. Rest in peace. You were the true hero of our time…
