The more I learn about finance, the more I realise how conjectural it is in nature. I feel we live in a world of so many absolutists and too few sceptics. I blame the parrot style education system we all have to go through, where we are trained to read and regurgitate "facts" and other popular tropes as if they are unquestionable.
We're never taught to question the nature of our reality, our reality becomes crystalised, and few take the time to review the rules and think, but this doesn't make sense. You can see it in many facets of life, so why not in finance?
I often talk about finding value in the market, but the value is subjective and changes from person to person, so what you value or what you find valuable can differ from me. It's why NFT's while fundamentally useless, trade for millions, the same with pokemon cards, art and designer clothing.
There is no fundamental value; there is only the perception of value from a group of people and the allocated purchasing power those people have at their disposal.
Bitcoin challenging how money works
I NEVER gave a second thought to the way money works until I got into Bitcoin. I had a feeling something was wrong but could never articulate it. I could never understand the open acceptance that money has to lose value and that investing was the only way to stay ahead.
It never made sense; why would I work so hard to get this thing only to give it to someone else to be able to give me more value? Why do I get punished for keeping it?
For many, this isn't something they think about, realise and simply accept, as, in the parrot nature, we learn everything.
- If we look at bond markets, there was a time when the words negative interest rates was a laughable idea; now we're doing it.
- If we look at equities, there was a time when trading at 1000 times earnings was laughable; no, we're doing it.
- There was a time when 80% - 130% debt to GDP was unthinkable, and yet we are doing it now in many countries.
The rules are changing; the game is NOT factual; in fact, it's being rewritten as we speak.
Breaking through the noise
I listen to ALOT of financial content, and the more I learn, the more I see how full of shit these people are and how the system rewards them for being full of shit. I listen to the rules of the game, how it is played, but I don't see them as absolute rules that cannot be broken.
Finance is NOT a set science. It's a narrative-driven dog and pony show, and the sooner you accept it, the sooner it becomes easier to understand.
By hook or by crook, money is allocated to different people in the economy; over time, certain people accumulate more than others. It's by no means a fair system; there is no fair system; the system works the way it works. Is Bitcoin a fair system? No, but it's fair in that we all force the same rules on everyone.
But we bring the variables; we bring the time you got in our the amount of old-world capital you have to allocate to the asset class, we bring the variables to Bitcoin. Bitcoin doesn't;t change; you change around it.
Now, if money doesn't change and is a one-trick pony, it brings with it a unique problem for people that it rewards the prudent person. Over time, the HODL'r who simply accumulated will do far better than those moving in and out of the asset class.
However, we all have different time preferences and needs, and we make decisions based on these variables.
What you as an individual needs to do is pick a game you like, learn the rules of that game, see how the rules are enforced or can be broken, and then and only then do you decide to put a dime of your money into this game.
You don't do into a game of soccer without knowing you can't pick up the ball and run with it, so why do you do it in finance?
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
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