The Story Of Dogecoin.
This has been a really bad week for the stock market and cryptocurrencies. Since the Fed raised interest rates the stock market has crashed alongside Bitcoin and other cryptocurrencies. Over the last two years, a lot of millennials and gen-z have been spending their Covid stimulus money and discretionary income on Bitcoin, Ethereum, Dogecoin, and the sorts. These investments in the short term looked solid but as we know nothing great in life is easy and it seemed just too easy.
Well if you haven’t been keeping up with stocks or cryptocurrency there has been a very sharp and steep decline and there is no telling when it is going to hit bottom. For example, if you would have invested $1000 in Dogecoin just a year ago you would now have less than $100. This accounts for a majority of people that purchased Elon Musks’ so-called “side hustle” and it’s leaving a lot of investors broke. Unfortunately, I am writing this as one of those people that got caught up in the hype and didn’t want to have FOMO (fear of missing out) so I put some dollars in too.
I’ll tell you my story…
In late January, and early February 2021 a lot of my friends were telling me how much money they were making in cryptocurrency. At the time I was looking for additional speculative investments and my risk tolerance was high so it seemed like Bitcoin fit that description! After a few extensive conversations with “Cryptocurrency experts”, I decided to give it a shot. It is now 18 months later and I have lost a majority of my investment. Why did this happen to me? I got caught up in the hype. It’s very easy to get caught up in the hype especially when it comes to business and money.
How not to get caught up in the hype…
In order to not get caught up in the hype, you have to be a long-term thinker. You must not chase short-term gratification and be more focused on the bigger picture. It’s the short-term thinkers that want it right here, right now that end up getting caught up in the web of new trends and ultimately get crushed.
I got caught up in the hype of cryptocurrency and put a decent amount of money into Bitcoin and Ethereum. My profile is currently down over 70%. For me, this is a lesson to be more of a cautious investor. How do I invest more cautiously? Buying slower and not going in all at once. This is a lesson to be learned for all of us. Now that 90% of people that bought cryptocurrencies have lost money you would think that most people are going to learn this same lesson however it might be too late for them, here’s why?
So many people have invested a substantial amount of their net worth into these cryptocurrencies and it has left them with absolutely nothing. One of my friends, for example, had over $2 million of cryptocurrency on paper but after the last few months, he now has zero. This is a true story, and a lot of other people that live paycheck to paycheck and invested in these cryptocurrencies are getting crushed.
So what do you do from here…
So the next trend that comes along you must tread lightly. If you think it’s a good opportunity and you have a decent amount of risk tolerance I encourage you to take action. But take action slowly. The next few years are going to expose a lot of people that don’t actually have skills. The people who are not spending the time, energy, and attention on personal growth will be left behind. I myself am preparing for this recession by sharpening my skills as a writer, speaker, and podcaster, and obviously with my physical health and mental health so I can make a bigger impact on my client’s and future clients’ lives.
If you want to know what I’m doing specifically to sharpen my skills and get ready for the next 10 years you can email me at firstname.lastname@example.org, text me or call me at 561-779-3401.