The Price Deception

in LeoFinancelast month

Hey Jessinvestors

We come from a world where we've been programmed to understand the price of something going up means it's increasing in value. However, as the unit of account, we use to measure value is constantly changing, it becomes harder to discern what is valuable and what is rubbish.

Our centralised monetary policy also means certain asset classes get more capital than others as policy makers in government and banks decide where the bulk of the money is allocated.

Price is the be-all and end-all for many

I still make the mistake of getting baited into arguments about assets like shares and cryptocurrency. Often, the argument on why the asset is valuable is its increase in fiat price. Honestly, what doesn't increase in nominal rates?

No one is thinking in real terms these days as they are so conditioned to accept the fiat currency as the barometer of value. Price is a very misleading measurement, especially in these times, and when you look deeper or those to tend to look deeper can see the difference.

There are many reasons why the price of something increases and they are not equal.

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Click-bait culture

We're all guilty of not doing our own research; it's become the cultural norm to spread ignorance. As they say, a lie can make its way around the world faster than the truth can get out of bed. Who among us is not guilty of reading a headline and sharing it with others way before reading the context of an article.

It's the same way a lot of people treat investing; we can see this by seeing how people react to a simple tweet from Elon Musk or an article from a reputable publication, or a sound bite from a famous investor or CEO.

Taking the time to DYOR

No one bothers to take a deeper look and acts on the whims of face value.

Companys, cryptocurrency, de-fi projects and more can sucker investment because they can make the price go up. Companies do this by borrowing or using cash flow for stock buybacks; cryptos do that by tweaking their tokenomics, Defi projects do it with wash trading.

If there is an ability to manipulate the price, you can be damn sure people will do it. Central bankers are not the ONLY ones who cannot resist the urge to manipulate markets; they manipulate the larger market.

It would be not very smart to think that CEOs, Crypto founders and DE-FI project owners aren't going to do the same thing when there's a financial incentive involved.

Why hard money is so important

Bitcoin is trying to become that measuring stick, but it's not there yet; At the same time, it shows the deflationary collapse of other asset classes; it's not large enough in liquidity or market cap to be the measurement for the value we need. Still, I believe it will reach that point eventually.

For now, it's still tough to avoid the seduction of price, and even those who have fallen into crypto still cannot break the fiat mindset of value. They are suckered into less than desirable crypto projects because they are fooled by the price.

Price should be one indication of value but not the be-all and end-all of your investment decision.

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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Doing your own research is of paramount importance. Elon Musk and the hype around Doge is the greatest example of how some folks can be manipulated. Value and price growth do not always go hand in hand. It takes a financially educated mind to see this.

Oh totally and the crazy thing is if we had functional markets people who saw this would short it

but because of all the hype and money printing short sellers are not getting involved so theirs no counter balance in the market and these crazy blow off top markets can run for longer than they otherwise would

giving investors even more false confidence and sucking in more capital as people are proven right short term by the price moving up

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Where there are money there will be market manipulation. It is a no brainer and crypto is no exception

Absolutely it’s actually sad to see crypto with all its promise become an extension of the thing it was created to solve! Sigh speculation, something for nothing and number go up seems to be more powerful than we thought

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No one bothers to take a deeper look and acts on the whims of face value.

I think this is definitely true and I honestly learn more about the system by myself trying it out rather than hearing about it. For example, I got into a liquidity pool in the past week and it was a huge learnings experience compared to the CUB airdrop. I staked the CUB in the DEN so it was just a few clicks but the LP had a few things making me scratch my head why.

Apparently there are people who didn't see these details and they were surprised when I told them a little bit of what I say and looked into.

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Totally man you have to dig into it yourself, you have try it yourself, you have to read both sides of the story and then make up your mind but who wants to go through all that effort?

It’s why I have no sympathy for people who get rekt I put out my thoughts on the topics and you can read them and then dive deeper but no ones really reading mu content or even better content than mine that’s a similar style of questioning things

they too busy watching tiktok and pimping up doge so you know what? Get rekt that’s cool I’ll pick up the Sats once the blood is in the streets

If there’s one thing I learned is betting against the masses is always a good bet

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I think is shows that the programming of society works. I'm continually surprised at the number of people who fail to heed the mantra of DYOR, and seem to look to others for an answer.

Even things like personal health issues, where someone asks me a question and I'll send them a link to a relevant study which they won't read. Such individuals aren't worth my time if they're not willing to put any effort in on their own.

We only have so many trips around the Sun allotted to us and need to maximise the time we have on this spinning ball of life.

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Agreed we live and die by the the information we acquire and not all information is equal you can sit and easy tabloid garbage or DYOR and make decisions for yourself

Like you say most won’t so they can’t expect to get something out of life that the majority don’t get. If you don’t better yourself by bettering the information you put in your head and the way you process it then by all means have fun but don’t come crying to me when you’re rekt by inflation and the government can’t do shit to bail you out

Like so many people send me FUD articles about BTC or the tax and government crack downs and I’m like honestly the person reporting this shit doesn’t even understand it they just repeated some quotes this is dumb

But we all look stupid until we’re proven right so I don’t mind

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It's Sunday so "I am a Jessie." 😍

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Lol and you’re always welcome !LUV

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Price as a unit of measurement is the oldest way and it’s going to be tough to get rid of it.
We have seen a lot of examples of how price can be inflated to create a fake bubble to attract people. You already mentioned a few. Rich people investing huge money Into something and pulling the money out to make instant profit had happened countless time.
What’s on the table and what will this product or service offers and the value that customer is getting from this is the true measurement but as we all have been revolving around Fiat so we always try to think in Fiat terms.
!luv 1

It’s crazy how easily we accept things if I talk to other people they complain prices are going up for things they buy but they make peace with it and assume increased wages offset that but they don’t do the math nor do they account for the compounding effects and before you know it you’re the one underwater and you want to know why

Life is not fair, just because you’re a good person and do good things doesn’t mean you get rewarded in many times it means you get rekt!

Those ideals are for an economy of hard money something we don’t have so you have to play by these new rules and get used to soft money principles

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