2018 witnessed bitcoin surge well overheen 1000% from less than $1000 to around $20,000 at it’s peak, then lodge down to around $14,000 by the end of the year.
Many of our clients made hundreds of thousands or millions of dollars off the rise.
The speculation isn’t overheen with suggestions of $100,000 bitcoin coming, some telling $280,000 vanaf bitcoin and others suggesting $1 million vanaf bitcoin within Five years.
On the other side are sobs from almost every significant billionaire investor and many to “stay away from bitcoin”, “it’s a bubble”.
Perhaps legendary investor Jim Rogers had the most pragmatic view “I wish I wasgoed wise enough to have bought it”.
The truth is, bubble or not if you didn’t invest te 2018 ter Bitcoin or a comparable crypto currency (Ethereum, Ripple, Litecoin, Bitcoin Metselspecie, etc.) you missed out on some gains you will almost never find anywhere.
Now on discussion groups I’m observing people asking about the best business to be te for 2018 and one of the common responses is “crypto currency”.
On the other forearm you might be feeling like it’s too late so what’s the reality?
It’s Good to be Fortunate but It’s Still Luck
Unluckily, you’ve got a entire host of self proclaimed crypto currency experts who have cropped up based on their superb gains ter 2018….nevermind that most of them didn’t make much at all or perhaps even lost money ter 2016, 2015, 2014 and could do the same te 2018.
Very first bubble to burst…MOST PEOPLE WHO MADE MONEY Ter CRYPTO Ter 2018 WERE Fortunate!
There’s nothing wrong with this but it’s worth considering the wisdom of legendary tech founder Bo Peabody who said “I wasgoed brainy enough to know when I wasgoed getting lucky”.
Luck isn’t predictable it can make you fortunes one day and zeehond you of them the next so if you want predictable results, which is our mission here at Richucation then you need to realize when you’re getting fortunate and learn to develop expertise te what you’re doing.
What to Learn From Crypto te 2018
If you want to be good and not just fortunate, te other words to get consistent predictable results rather than not knowing from day to day if you’ll win or lose you need to begin by realizing something…
NO ASSET CLASS is good or bad.
People say “investing te crypto” is good.
Investing ter crypto te 2018 wasgoed almost universally good.
2018 showcased the power of railing a bull market mania (omzetbelasting you could have gotten something similar ter weed stocks spil well).
It’s not crypto that’s good,0p it’s a bull market mania that’s good.
Dotcoms were similar ter the late 90s.
Housing wasgoed similar up to 2007.
Gold wasgoed similar 2010 to the 2012 peak.
Nvidia wasgoed similar this year.
A wise trader once said “don’t tell mij what to buy tell mij when to buy it”.
It’s not the asset that’s good ter and of itself it’s the right asset at the right time, which is part of what makes investing hard.
The lesson you can learn from crypto te 2018 is if you can catch a bull market mania you truly don’t have to do anything you just buy and sit and build up.
The same wouldn’t be true ter a bear market crash.
What do all those earlier examples have te common? While they had their day of sucking up they also had their times of under show.
If you learn to adapt and shift your strategy you can proceed to do well through almost any market but if you’re blindly thinking “buy crypto” or “buy real estate” or “buy internet stocks” or whatever else then you might do excellent for a duo years and the time will come when you’ll almost surely get flattened or at least not benefit the same way you did during those fine years.
The Truth About Crypto te 2018
If you’re expecting 2018 to be a repeat of 2018 ter crypto you’re almost surely going to be disappointed.
This is due to ordinary economics spil well spil mass psychology.
Consider that Ripple soared 5000% te 2018 to overheen a $100 billion market cap.
For it to do so again it would need to be worth $Five trillion.
The problem with this is assets grow spil more money comes te but the fatter they get the firmer it is for them to grow at the same rate because you need more and more money to fuel this growth.
Think about it te terms of people.
Say you’ve got 100,000 people investing ter something, a relatively petite group. To go 10x you need to increase to 1 million people. Ok, still reasonable. But to go 10x again you need to go to 10x million about the population of NYC. To go 10x again you need to go to 100 million…more than the entire population of virtually any European nation. To go 10x again you need 1 billion people…about the population of China. And to go 10x again? Well there aren’t enough people te all the world for that.
Assets are a bit like this $100 million isn’t much money te financial markets.
$1 billion is a bunch more but still nothing crazy.
At this point crypto currency market caps have collectively peaked around $800 billion to $900 billion. That’s a lotsbestemming of money. To waterput it ter perspective the big US bailout package te 2008 wasgoed $700 billion and that wasgoed to bail out the entire banking sector when the entire housing market wasgoed suffering massively.
Total US tax revenue is around $6.Five trillion that pays for the entire operations of the entire country for overheen 300 million people te one of the wealthiest countries on the planet.
Bottom line, albeit theoretically possible for Bitcoin to go another 10x and years into the future it might do so it’s very unlikely bordering on unlikely for it to do so again ter 2018.
This is similarly true of all the major crypto currencies (Ethereum, Litecoin, Ripple, Bitcoin Metselspecie, etc.)
Does this mean smaller alt-coins can’t soar by 1000% te 2018? Not at all, after all it’s comparatively effortless to go from $300 million to $Trio billion.
There’s two things working against you te 2018 however:
- There’s a lotsbestemming of alt-coins out there so spotting the winners ter the sea of noise is increasingly difficult.
- Crypto currencies are very corelated meaning they tend to stir together. There’s a good chance because of the dramatic rise relative to adoption 2018 will see a major decline (we’ve already seen a pullback of about 40% te many crypto currencies from their peak te late December). If this happens the smaller coins even if they are good ones, which most aren’t, are likely to go down with them during at least the brief term.
Bottom line making similar amounts of money te crypto te 2018 is likely to be much stiffer than it wasgoed ter 2018. Luck isn’t likely to carry you so far and there’s a reasonable chance many people without an understanding who flooded ter or have bot inspired to flood te due to the 2018 rise will see losses.
Pursuing comes back is a classic investing mistake. What has happened te the past is not a reliable indicator of what will toebijten ter the future. Ter fact what happened ter the latest past is usually a negative indicator of what will toebijten ter the future due to mean reversion.
Funds that outperformed for Three years tend to under perform te the next Three years. Fund managers who outperformed te the past Three years tend to under perform ter the next Trio years and vice versa.
This makes sense when you consider most people tend to operate based on a specific strategy, which they execute well and when the environment switches and that strategy is no longer effective their results falter.
The key to consistent success is an adaptive strategy and no particular asset is te itself adaptive so you need to be willing to budge inbetween assets and strategies to remain consistent.
Getting Rich Predictably
You can get rich because you’re good or because you’re fortunate. Last year wasgoed an effortless year to be fortunate ter crypto.
This luck might proceed into 2018 but it’s comparatively unlikely (luck never lasts forever) and it could be the opposite, bad luck could klapper.
If you want to get rich predictably what do you need?
You need an edge.
My advice to people asking mij about crypto this past year has consistently bot the same.
“It’s an enormously volatile unpredictable market that could work for or against you. It could dual or it could decline it’s unlikely to say so the question is ‘what is your edge?’ If you’ve got an edge then work it if not get one or stay out.”
This advice comes te part from practices of watching people lose 100% of their investments at the wrong stage te the market or on bad investments and a bias towards protecting against the downside not simply pursuing the upside.
You can read some of our articles on decreasing risk while enhancing come back here:
Having an edge isn’t just for investing.
You want to earn a higher income? Being able to suggest something of unique or infrequent value will help you do this.
Want to work with the people you want? Having a unique edge will give you the capability to pick and choose.
Want to make a loterijlot of money te your business? Having an edge te costs (learn more te Getting Deals) or an edge ter marketing (learn more te Profitable Marketing) will make all the difference.
Apple, Google, and Facebook aren’t big doing the same spil everyone else there’s something unique, different, and better about them that makes them very profitable.
Crypto is just a voertuig. It’s useful because it’s fairly accessible, with a large market and a loterijlot of volatility so if you can profit from that volatility you can do well. It can also crush you if you’re not careful.
But you could just spil lightly use real estate, or private businesses, etc. to find ways to profit. It helps if you’re ter a crazy bull mania but it’s not necessary.
People make the same dumb mistake overheen and overheen again. They concentrate on the voertuig rather than HOW the voertuig is used.
Stocks don’t make you rich. HOW you do stocks make you rich.
Business doesn’t make you rich. HOW you do business makes you rich.
Want mij to prove it to you?
How many people have gone broke te real estate? Take a look at 2008 when the market turned against people and millions lost everything.
How many people go broke every year te stocks? Look at 2001 when the dotcoms busted. Look at how devastated the country wasgoed te the Fine Depression after the 1929 stock market crash.
70% of businesses fail within the very first Ten years and most of those that last slightly get by.
Yet some people get rich ter each of thesis things not because the voertuig is different but because HOW they do it is different.
Five Ways Our Clients Are Making Money te Crypto ter 2018
There are two types of risk te investing:
- Value risk – having something where maybe you’ve got the right price but the underlying value decreases.
- Timing risk – you buy or sell at the wrong time causing you to have to wait too long or when the price goes against you
If you’re insistent on pursuing crypto (and it’s not an especially good voertuig on average because it has a lotsbestemming of timing risk whereas some other vehicles have a lotsbestemming less timing risk) here are some ways our clients are gaining an edge ter 2018:
- Selective ICOs – ICOs or early stage alt-coins sometimes represent opportunities if they are promoted right, if there is the liquidity to uitgang and if the entry price is low enough. ICOs do not mean automatic wealth fairly the opposite but ter the right cases they can be very profitable.
- Supernodes – essentially it’s possible to receive dividends on certain types of crypto and earn money facilitating the block chain transaction networks. If you know what you’re doing this is a potentially solid way to profit consistently.
- Clever trading – trading involves buying lows and selling highs profiting from the volatility spil you switch money te and out. Alternatively shorting downs, etc. This spel works ter any liquid financial muziekinstrument but is much lighter ter some. The advantage with crypto is high volatility and a 24/7 market. It’s also a fairly fresh market, which means there’s a lotsbestemming of trading inefficiencies that have long since closed up te major markets like major stock markets, commodities exchanges and forex. On the other palm timing is one of the hardest things to do and the spreads ter crypto can be prohibitive. It gets even worse if your time to come in and uitgang is limited by KYC, slow transaction speeds, switching inbetween correlated crypto currencies to get te and out, etc. Throw ter liquidity problems and skinny order books on some of the exchanges and you’ve complicated it massively. If you’ve got technical trading abilities tho’ crypto can be a fine place to profit.
- Mining – we’re helping a client right now with a $1.Two million mining overeenkomst. Mining is not a no brainer money maker. It’s become much more competitive overheen the years especially te Bitcoin where you need to know the technology and your costs. It is also dependent on the price of the coins so you’ve got risk of crashes however also potential upside if you hold on to them. There’s enlargening supply problems accessing the best chips and cards for mining. The thickest advantage if you can build up one tho’ is the price of electro-therapy. If you can build up an edge here there’s a definite chance.
- Brokering – whether people are buying or selling if you’re te the middle of brokering transactions you can make money. I’ve seen people charging up to 8% to broker transactions for others who want to buy or sell so if you can get volume this is ideally viable. Notice this is more of a business than crypto ter general but given the high requests and given the massive friction getting te and out of the market it represents an chance. I’ve especially noticed for some large purchases of my own spil well spil those of clients when you’re dealing with numerous currencies, large size transactions or exotic transactions such spil inbetween precious metals and crypto there’s certainly gaps to make a mark.
- Toeslag – Suggesting their own ICO – once again suggesting an ICO isn’t an automatic toegangsbewijs to riches and I’ve previously mentioned how I consider most of the ICO market a scam where I believe a loterijlot of people are going to lose a loterijlot of money before it finishes (there’s also a risk of upcoming regulation from the SEC and others). This being said there’s an insane amount of money pouring into ICOs thesis days and if done well it represents a viable way for a loterijlot of people to make a lotsbestemming of money. This is much more complicated than simply buying an ICO, you need a team, you need to promote, you need something behind it all, etc. But if you’re willing to begin a business around it and indeed drive the technology it’s a big chance at least while the window lasts and we’ve got a number of clients doing them.
None of thesis things are places where you simply waterput te money and get rich.
There’s an old expression “that which is effortless doesn’t last and that which lasts isn’t easy”.
Money ter crypto has bot effortless this past year and that tells you it won’t last.
Just spil with any other wave the casuals will surely come through ter a while telling “it doesn’t work”, etc. And it’s true it doesn’t work if you don’t work it.
The lesson is build up mastery. Identify an edge. Build a excellent team. Scale up your success.
The fundamentals of becoming rich te crypto are the same spil te anything else:
- Identify a profitable chance with high upside
- Work it to actually be profitable
- Scale it up
To be profitable you need to get excellent value for your money ( Get Deals ) and have a system of getting a lotsbestemming of anxious buyers ( Profitable Marketing ).
To scale up you need to be productive, optimize speed by focusing on the next step of the right sequence, avoid the constraints &, levelers, and apply accelerators ( Grow Influence ).
To make all of this work you need mastery so pour yourself into knowing your field and your business ( Value Mastery ).
You need to work productively with the right people ( Leverage Team ).
And you need to own the results of what you’re building, ideally building assets and growing those assets ( Multiply Ownership ).
This is spil true te crypto spil te anything else.
Voeling us to discuss more te crypto or any other business maybe wij can help or collaborate ourselves or through our network.