Is Buying Bitcoin Driving You Crazy
Can purchasing bitcoin drive you insane? In this article, I’ll share some key takeaways from some of the world’s most astute investors. Because sometimes the people who appear insane are the ones who truly understand.
When investing in a new time or idea, it’s important to be able to think for yourself and imagine what the world would be like if a new technology was used in everyday life.
Mindset
In the late 1990s, the internet was a widely used technology. According to the Newsweek article, which made a big deal out of saying that the Internet was a fake and a fad,
Why the Internet Will Never Be Nirvana
Twenty years later, the internet has become the foundation of our daily lives. Nonetheless, a lack of vision may prevent us from reaping the benefits of our wealth or, worse, cause it to suffer. Hopefully, by understanding these terms, the mind can be changed:
โข Puck
โข Truth
โข Change
Puck
When Warren Buffet decided to invest in Coca-Cola after the 1987 stock market crash, the high P/E ratio implied that the company’s stock was overvalued. Warren Buffet was right, because a high P/E ratio can also mean that investors think the company will grow quickly in the future.
Warren Buffet identified Coca-Cola as a distinct brand by Warren Buffet because it is a popular, sweet beverage. Coca-Cola is not the healthiest beverage to consume, but it is critical to maintain objectivity and avoid allowing our prejudices to cloud our judgment when making investments. If we want to achieve good results, we must be analytical rather than emotional.
Conjecture would entail considering current investments in a hypothetically different state of affairs, such as where the world is headed, and thus taking advantage of assets, stocks, and so on that are not yet valued. Warren Buffet previously stated,
In the business world, the rearview mirror is always clearer than the windshield.
Truth
The sheer amount of negativity, pessimism, hopelessness, and desperation that goes along with emerging technologies–profoundly stated “you just don’t get it.” However, more often than not, the result of a cessation is that people despise the truth; it’s difficult to reevaluate and reimagine our lives in a different future state.
Warring Partridge stated in 1995 about the internet.
“Most successful things do not necessitate retraining 250 million people.”
It implies that the internet is too difficult for the average person to use. In contrast, the majority of people in today’s society use the internet despite their lack of technical knowledge (TCP/IP, SMTP, and so on).
Partridge, Waring
It implies that the internet is too difficult for the average person to use. In contrast, the majority of people in today’s society use the internet despite their lack of technical knowledge (TCP/IP, SMTP, and so on).
Premature arguments against new technologies (such as the internet, Amazon, Apple, Bitcoin, and so on) include concerns about their volatility. The interpretation of macroeconomic data and decades of patterns shows unequivocally that volatility is an important component of early technology adoption. Michael Burry’s graduation speech stated,
Risk is not defined by volatility.
Contrary to popular belief, risk rises when market values rise, such as during tech bubbles (such as those in Theranos, Jawbone, and We Work), real estate bubbles, and cryptocurrency bubbles. According to the “Nassim Taleb’s Turkey Problem” theory, until Thanksgiving, when something unexpected happens and the turkey’s beliefs change, friendly members of the human race look out for its best interests every day.
“When volatility is in an uptrend, no one complains.”
Energy, the internet, Amazon, Apple, Tesla, and other industries were clearly unstable, and were frequently described as “bubbles” or “dead.” However, these advancements altered our way of life.
Change
People, especially older generations, dislike change. The world, on the other hand, desires progress, production, and efficiency. In reality, technology that increases productivity and efficiencyโfor example, the printing press, telephone, microprocessors, and so onโis disruptive to society.
For reasons of acceptability, comfort, and safety, humans tend to align our thoughts with those of our social group. For fear of being incorrect, traditional thinkers dismiss unconventional ideas as strange, bizarre, or silly.
Independent thinkers (open-minded), on the other hand, rethink, reimagine, and reassess the state of our current circumstances and the future of the world, frequently asking unusual questions, and are not afraid of being wrong.
“Normal”sane’ people think’smart’ people are ‘crazy’-a story as old as humanity.”
It’s better to listen to and learn from a crazy person than to dismiss their ideas and predictions. As history’s inventions demonstrate, do not dismiss them as crazy lunatics.
- The saying goes, “Airplanes are wonderful scientific toys, but they have no military utility.”
- BicyclesโAccording to experts, “the popularity of the wheel is doomed,” and bicycling is a passing fad.
- Mobile computers: “A troublesome piece of equipment.”
- etc.
The line between insane and genius is thin, but both are visionaries.
Contrary to popular belief, people prefer conformity over creativity, diversity of ideas, or points of view. People have to change and think about where they fit in the world because innovation is disruptive, which is hard and uncomfortable.
Many of the country’s problems, such as manufacturing decline, wage stagnation, and financial sector expansion, can be explained by a lack of imagination. In the words of Peter Thiel, “without imagination,
You have a dizzying choice with no progress.
Crazy people frequently have the fish-out-of-water quality, which is when a person feels uncomfortable because they are different from those around them. To embrace that quality, though, we have to put aside our beliefs and feelings and try not to be offended by the deep and scary ideas about the future (like cryonics, life in a simulation, the Metaverse, artificial intelligence, etc.).
“Sometimes the people who appear insane are the ones who really get it.”
Mr. Matthew Kratter