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November 28, 2017, 12:41:30 AM |
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Financial Market
In order for a financial market to exist there needs to be excess money, whether that be fiat cash like the United States Dollar (USD) or crypto currency like Bitcoin. In order for the price of Bitcoin to increase, someone needs to be willing to pay over the market value for the coin. On the other hand, the value of a Bitcoin is decreased when someone is willing to sell it for less than the market value which is just supply and demand 101. With this logic it is easy to figure out that if you sell it at the current market value the price will not increase nor decrease which from a financial standpoint is not good especially since you are paying an exchange fee likely. If the price does not increase or decrease you can’t make any money because there is no excess money to be made. So from an investor standpoint you want to buy a Bitcoin or any coin for that matter and sell it for more than you bought it for so that you can make a profit. Pretty obvious point I am trying to make right? So if you are making money on a coin, what does that tell you? It means that someone is losing money because they are selling it cheaper for you to buy and then someone is buying it higher for you to profit on. In order for you to buy at a low, someone needs to sell at a low thus making them lose money. We need suckers and losers in the market otherwise we can’t win. If you don’t have people losing their money, you can’t make extra money to put into your pocket. Some of you reading this might even be losers. It is the hard truth I am sorry, but it is true. That’s a painful thing to hear, “there is a chance you will be a loser” but it is something that you have to understand when you’re investing. This is why people will tell you not to invest money that you cannot afford to lose. One of the biggest problems and one of the main reasons people become losers, is that they act like a loser. They read the incising news stories “14 year old becomes a MILLIONAIRE investing in bitcoin” and they fly to their Coinbase accounts to make a transaction. However they don’t realize the amount of work you need to actually put in. The funny joke in the financial world is thinking that it is as easy as buying low and selling high. It is funny because that is what you are aiming to do, however it is not as easy as it sounds. If you want to make money you have to make better decisions and work harder than the “average” person. The average person can’t invest their own money for a variety of different reasons, and it doesn’t mean you are a dumb person. As per the last example, I will bring it up again and it is the fact that most of you reading this are “average” and will get burned investing in crypto currency. Don’t pretend to be smarter than you actually are, because you will get burned. That’s a very hard thing to get over, because as a human you want to think highly of yourselves and want to be the smartest in the room. However it is not always the case and I am by no means saying I am smarter than anyone reading this. I don’t want to be mistaken as saying “Don’t reach for the stars because you’re not smart and your average” what I am saying is, don’t let your emotions get in the way of your actual results. Always strive to get better and put in the work so that you can be successful. To make a lot of money in the market you not only have to be lucky, but you have to put in a lot of research and understand what you are researching. Have people purchased Bitcoin and became millionaires without keeping up to date? Yes of course, but I am speaking to the majority of people. If you want to make a lot of money from your investments you need to be up to date because the market changes every single day and new technologies come out that can affect your investment whether it is in crypto currency or traditional investments like stocks.
Thoughts on this?
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