I watched many crypto projects rise and fall and I talked to many investors and what surprised me the most is the lack of understanding of very simple financial rules.
**You can’t generate money out of thin air!** I read it every time that people think that everybody will be rich with this or that token.
If you make 1000$ someone has to lose 1000$ (+ the fees for each transaction) a
Another real-life example is dodge coin someone invest 8k und made billions with. This money is from the people who bought after him and hold it when he sold it. Each of them gave him a “piece” of his money.
On paper it can look like everybody in plus but when people start to sell than the price would “adjust”. The same is with burning tokens increase the price for a token but not the overall market cap.
**Crypto has no “real” value**
Right, it has zero value it’s all backed on real economy and it can’t stand on its own. When you buy a stock own a piece of the company. When you buy crypto you own nothing expect the crypto itself of course and a link to a discord group. The worth is created by people who put real money behind it. Maybe there are future projects but even what I saw nothing looked promising.
**A lot of scammers are out there**
There are a lot of scammers. I could write 10 pages about it but when a YouTube celeb. is promoting it its basically a scam and a quick money grab.
How it works
It always works the same way. The invest 100k or more into their own crypto project. Then they hire celebs to promote it. The price skyrockets and then they dump it and abandon the projects and move on.
**When you invest, keep your emotions aside**
Maybe just invest because of the memes and they get blinded by the charisma of certain people. They don’t look how the company performs or anything they just want to the moooooon and that’s it. Value a company first before you invest. I see a lot of cult like behaviour pls. don’t be the guy….
**Right now, it’s a giant dynamic pyramid scheme.**
Because it has no value on its own its a pyramid scheme where you can enter and exist whenever you want.
**Do not go all in**
Do not put all your life savings into it and pls don’t take any credit at all. Always invest as much as you afford to lose.
**Final words** I know many believe in it and want to become a millionaire quick (someone said to me slow which meant 1 year lol) but just consider it before you invest. I’m tired to see young kids lose everything and getting brainwashed and even shamed for it from the founder itself.
The “system” will probably establish to a certain extent, but I won’t change the world as they promise.
I work in a big company, and I was optimizing a part of it, and I thought about digitalization with the existing protocols (which work greatly) but after some talks with the devs it would be impossible because they are not compatible, to adjust it it would cost billions and the benefit would be close to zero. It’s a very long way until it will be considered to be used 10+ years and who knows what the next big thing will be.