Financial Education: The Importance In Growth
(Edited)
In all markets, growth is an important variable. It is also overlooked. Obviously we have more of a track record in the equities markets yet it is just as vital in cryptocurrency.
In this video I discuss how many overlook growth in pursuit of the "casino" moves. Over time, we need to concentrate upon the growth of a company or a project.
▶️ 3Speak
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Most of the crypto projects are in the position you described in this video. They can burn the hell out of their tokens, still worthless when it comes to use case and development. That's what makes Hive and that's why I consider it to be undervalued.
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Summary:
In this video, the speaker discusses the importance of growth in investing, focusing on how growth is commonly overlooked in the cryptocurrency market compared to traditional equities. The speaker draws parallels between high-growth stocks in the equities market, like Tesla, and the potential for exponential growth in cryptocurrencies. He highlights the dangers of investing in projects with no real growth prospects, labeling them as zombie cryptocurrencies. The speaker emphasizes the need for investors to prioritize growth when assessing investment opportunities, while acknowledging that some established companies with steady growth rates can also be valuable.
Detailed Analysis:
The speaker begins by highlighting the significance of growth in investing, noting a common oversight of this aspect in the cryptocurrency market compared to equities. He draws a parallel with high-growth stocks such as Tesla, emphasizing the difficulty in valuing companies with exponential growth due to their high price-to-earnings ratio. The speaker uses Amazon as a prime example of a company with exceptional growth that defied initial skepticism and ended up being highly successful.
Transitioning to the cryptocurrency world, the speaker discusses token manipulation and compares it to stock buybacks in the equities market as a form of financial manipulation. He explains that some projects focus on cryptonomics without substantial growth, likening them to zombie companies that are stagnant and of little value. He stresses the importance of evaluating growth rates, user additions, and development in cryptocurrency projects to avoid investing in entities with zero growth potential.
Furthermore, the speaker acknowledges the unpredictable nature of the cryptocurrency market, where new projects can emerge suddenly, gain traction, and become successful. He advises investors to prioritize growth when considering assets to purchase, citing examples of steady companies like Procter & Gamble and Coca-Cola, which offer consistent growth rates. He discusses the risks associated with high-growth stocks like Tesla, highlighting the need for investors to assess risks and potential outcomes before making investment decisions.
In conclusion, the speaker encourages viewers to focus on growth when evaluating investment opportunities and to be cautious of investing in projects with no growth prospects. He underscores the importance of assessing risk and choosing assets that offer potential for significant growth in both traditional equities and the cryptocurrency market.