Cryptocurrency: Like Kids On Christmas Day

With it being Christmas, a holiday celebrated by billions all over the world, I thought this a good time to tie in an idea that is floating around in my mind. It relates to not only Hive but cryptocurrency in general.

Have you ever felt, with cryptocurrency, like a kid on Christmas morning? It is something that is easy to spot all over the crypto-sphere.

It seems like many want to chase the shiny new object. We get into the situation where we have no idea which "present to open first". Holy heck Batman, there are so many to choose from.

Welcome to life in cryptocurrency.

image.png
Source

Lessons From The ICO Craze

Financial experts tell us diversification is a good thing. When it comes to the crypto world, this is probably sound advice. While there is a lot to be optimistic about, we need to realize there is a lot of experimentation taking place. That means not everything will succeed.

Perhaps it is prudent to look back at the ICO craze of 4 (almost 5) years ago. At that time, we saw a lot of great ideas rolling out. Of course, that was mixed with some very bad ones. Nevertheless, of the terrific ideas, how many worked out? Which of those projects can we name as still being active and progressing forward?

The answer is very few. Most died a rapid death. Some had no intention of ever bringing anything to market since they were money grabs. Others were filled with people who had big dreams yet little expertise. Another group simply underestimated the financial resources it took to complete what they set out to do.

Even the ones that were successful and still operating are not without issue. One of the biggest is EOS, which was released with great publicity. Unfortunately, that is now mired in a conflict between Block.One and the community.

Perhaps one of the most successful stories is SingularityNet. This was started by Ben Goertzel with the intention of decentralizing Artificial Intelligence. Here we are 4 years later and it is still forging ahead. While it has not achieved its end yet, the project keeps expanding. There is long-term vision that.

Hence, we have to be very careful with the landmines exists out there. To keep with the analogy of the day, there are a lot of stockings filled with coal.

Too Much Diversification

While the ICO era was tilted far to one side in that most projects failed, we are now at a point where things have shifted back. Not everything is going to succeed in the crypto world. Nevertheless, we are likely more aligned with typical technological success rates, which are not that great overall.

That said, is there the possibility of spreading ourselves too thin? We know there are new projects cropping up everyday. It is happening on Hive along within the industry in general. We see this simply by going through the posts on a site such as Leofinance. People are constantly bringing up new projects they find interesting.

Unfortunately, we cannot get involved with everything. Most of us tend to run out of resources before opportunities. Therefore, we have to concentrate our focus.

Another factor is time. It is impossible to keep up on dozens of projects. If we are just tossing a few dollars (or Satoshi) at it, then no big deal. We all do the "lottery ticket" play. However, if there is some serious money being put it, it is best to stay on top of things.

Here is where too much diversification can be a hindrance. When we are involved in so much that it is impossible to monitor, then we are in trouble. It is helpful to mention that "monitor" does not just mean watch the token price. By this, we are referring the ability to watch what is going on, research the ongoing developments, and be aware of any changes, either positive or negative, that are taking place.

Here again, we get like kids on Christmas morning in that we want it all. Sadly, as adults, we learn this lesson. There are opportunity costs in every aspect of life. The key is to understand we are not going to catch every project that explodes. Thus, it is best to put it out of our mind.

Wealth Concentration

One of the ideas that I often toyed with is whether diversification is actually a barrier to enormous amounts of wealth. When we look at the richest people in the world, for the most part, we can see how they had their wealth concentrated. Usually we can associate a particular company with individual names.

Certainly they held many different assets yet that was not their primary wealth vehicle. For example, a guy like Jeff Bezos owns a ton of real estate and other assets. Yet, we all know this is not what made him one of the richest people in the world. When we see his name, it is impossible not to think of Amazon.

One thing we can give the Bitcoin maximalists credit for, they are all in. Their view of things, no matter how much we see it as amiss, leads them to keep loading up on BTC regardless of what is happening. If it does reach some of the levels people are predicting, this will end up as a sound move.

Obviously, going all in on one token carries another degree of risk. At this point, it is probably fairly safe with Bitcoin and, perhaps, Ethereum. Others, though, carry a much greater degree of risk.

For this reason, one might be to narrow a view while dozens is too much. What is the proper amount is up to each person. That said, it appears the key is to find something that one is very optimistic about and load up. That might be a handful of projects, say 5 or 6. They could be different types of opportunities, combining gaming NFTs with some fungible tokens. Whatever the breakdown, it is likely good to concentrate one's efforts to a large degree.

This will help us to avoid being like kids on Christmas Day. The level of excitement generated with each new opportunity has to be tempered. Yes, we could be looking at the next Amazon or Priceline. Nevertheless, we should be working within an overall framework of what we are getting into.

Here we can see how not getting distracted by "another present" could be helpful. One key to success, in any area of life, is focus. Too much can end up diluting that to the point we are ineffective.

With that, I hope everyone has a great holiday season and looking forward to a fabulous 2022 in the world of cryptocurrency.


If you found this article informative, please give an upvote and rehive.

gif by @doze

screen_vision2025_1.png

logo by @st8z

Posted Using LeoFinance Beta



0
0
0.000
28 comments
avatar

pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 86 of my contest just started...you can now check the winners of the previous week!
!BEER
9

0
0
0.000
avatar

Awesome piece here Buddy.

When ICO came new to the crypto world, it was welcomed with open hands, because people saw an opportunity to buy early in a project and maximize their profit. The presence of bad players and poor strategy employed during the early days of ICO, where ICO investors dump the market upon public launch was part of the early challenges faced by ICO. Presently, the ICO system has been improved and it still works for some people though not for someone like me.

One of the problems I have with diversification is the challenge coming from income and responsibilities. Sometimes, responsibilities make it a bit difficult for investors to diversify their source of wealth at a fast pace. Take DEFI for an example. It is a good way to generate passive rewards but it is still a game of the big boys. The small fishes will only get peanuts from their small capital.

0
0
0.000
avatar

I would agree that DeFi on Ethereum is a game for the big fish but elsewhere, people can get involved with small amounts.

Just look at the HBD savings. Any amount put in there will garner 12% annually. That is not a bad deal and it is at the base layer so nobody is in control of it.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I'm content staying in the Hive ecosystem, like you said it's too hard to jump into everything. Cub makes me diversify enough to keep me satisfied.
image.png

Posted Using LeoFinance Beta

0
0
0.000
avatar

Reading your post reminds me of this acronym: "FOCUS - Follow One Course Until Successful!"

I have no idea who is the original source of that quote.

0
0
0.000
avatar

It is a terrific quote though. We get so involved in multi-tasking that we do not concentrate upon that which is in front of us.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It makes so much sense. I have been following so many courses in life that I feel like a loser and wanderer now!

0
0
0.000
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000
avatar

Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

You got more than 51500 replies.
Your next target is to reach 52000 replies.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Check out the last post from @hivebuzz:

Merry Christmas - Challenge Feedback - Win a 1000 HP delegation
0
0
0.000
avatar

Wealth concentration can be much better instead of spreading too thin everywhere. I feel that on my own as there aren't enough hours a day to do them all. And to tell you the truth a change of direction for me has been just that and I am trying to focus more on Hive as it is still flying under the radar and it comes so strong with amazing projects.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I agree with you about Hive still flying under the radar.

My guess is we will not be saying that a year from now. But we will see what 2022 holds.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Merry Christmas. The biggest gift I gave myself this year, earlier this year was adding you to my daily reading list.

!BBH

Posted Using LeoFinance Beta

0
0
0.000
avatar

Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

0
0
0.000
avatar

Hive sure feels like Christmas when you can earn so much second layer tokens just by adding some tags. I'm neither for too much diversification nor for maximalism. I realized though that its futile and impossible at the same time to spread yourself all over the market.

Posted Using LeoFinance Beta

0
0
0.000
avatar
(Edited)

Merry Christmas Tasky!

One question I avoid answering myself is if diversifying really helped my finances.

0
0
0.000
avatar

Merry Christmas. Sometimes I feel like I am spread a little too thin so I might have to think about how to concentrate my holdings. I rarely sell off my HE tokens but maybe it would be better to rethink things.

Posted Using LeoFinance Beta

0
0
0.000
avatar

About diversification, I've been reducing the list to a few but quality coins and tokens. I realized during this year the number of shitcoins one can lose money. So, better wrap up a little bit. But I think is OK to throw $100 here and there, in my case on play2earn games.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Count me as a crypto lover and also a fan of your blog which mostly contains information. Take love and go ahead 💖 Expecting a blessed year soon for all of us.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Crypto is unregulated and global, so a team can sprout up anywhere, take an idea, innovate upon it, and make something better. It isn't rational the think the developers of one project are smarter than everybody else. Sushiswap forked Uniswap, added a small innovation, and took a huge chunk of ERC20 trading volume. BSC replicated Ethereum with lower fees and faster transactions. Then Pancakeswap surpassed Uniswap's trading volume. So if your goal is to stay ahead of the curve, you need to pay attention to new projects, and keep an open mind. Of course, you cannot catch all successful projects, but with a little time and effort you can catch some of them, and learn a lot in the process.

0
0
0.000
avatar

Merry Christmas, one of the most important thing in life is focus, we should focus on a projects but have some other nice projects as side hustle

Posted using LeoFinance Mobile

0
0
0.000
avatar

It amazes me. Normally I find that with internet communities there are limited ways to earn and cashing out can be a huge problem, even impossible at times.
Hive Blockchain changed all of that with more ways to earn than I know.
Every day is like Christmas for me because of the different areas I have crypto coming from.

0
0
0.000