The Wolf Den #416 - Keep Politics Out Of Investing
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. Politics and investing are like water and oil - they don't mix.Letting your personal political agenda or belief system guide your investing is akin to looking to the stars for patterns or having your hamster decide what coin to buy. People often approach the crypto space through the lens of their own bias. It is always better to approach any investment, especially a new asset class, as a blank slate.To be clear, I am using the term "politics" broadly, not specific to your nation or party affiliation. This is about your personal biases.Politics exist everywhere in crypto. Some people believe deeply in privacy, while others are more concerned with decentralization or opting out of government controls. People with similar politics often gravitate towards the same projects and protocols. To confuse the matter, "likeminded" communities are often divided into subcommunities ie. Bitcoin Cash, Ethereum Classic, and Bitcoin Satoshi's Vision.Here are some examples of "politically" driven projects that have largely failed investors.Monero and Zcash were once the gold standards of privacy investing. Chances are if you hold either of these tokens, you are down on your investment, and still holding because of your belief in the concept.There are people who's beliefs in crypto surround banks, centralization and payments. This drove many to passionately invest in XRP. Holding this token has likely lost you money, as it has lagged behind the market. Further, countless competitors have arisen, including stablecoins which offer the same benefits without the volatility.Maybe you identify with a founder, their team, or their vision. It you choose wisely this can be profitable, but more than likely this will lead you astray, because you will be inclined to forego wise investing strategies and go all in. Further, you will be dogmatically attached to the investment, refusing to see the signs that it is a failed idea. This is how investors end up riding a project to 0.Another subset of political blunders includes popular forks such as Ethereum Classic, Bitcoin Cash, and Bitcoin Satoshi’s Vision. These coins were created by passionate leaders driven by their personal politics about a coin. They were strong at the time of their split, but are largely ghost towns today. When it comes to hard forks, being a contrarian is a losing proposition nearly 100% of the time.I am not trying to pick on any of the coins or projects above. Perhaps some of them haven't reached their full potential. These are mere illustrations of politics gone wrong in investing.So how should investors approach the market, if not through personal politics and bias?There are many ways to skin the cat, but the most obvious answer is to follow the money. I don’t mean starting with the most hyped coin or NFT, but rather understanding where the market is going, whether you like it or not. There have been clear, profitable trends in crypto over the past years. DeFi summer of 2020. NFT summer of 2021. The current metaverse boom. Instead of approaching these with preconceived notions, an investor should dig deeply into the notable projects with an open mind.I am guilty of this, having been largely dismissive of the jpeg side of NFTs. I could have taken a more serious look and bought a Bored Ape or Punk when the idea was just bubbling, but I quickly dismissed it as nonsense. I was wrong.Following the money also means changing your view over time as new and better ideas come to the table.Strong opinions, loosely held.Once you consider the values and concept of a project, also consider the strength of the white paper, alignment with current narratives and the future outlook. Politics should be at the bottom of your list.Instilling your politics into your crypto investing is a fast track to maximalism. We know that rarely works. Even if a maximalist nails one investment based on a political belief, they inevitably miss out on future investments, their growth stunted. Let other, more relevant attributes guide you.If you can get out of your own way, the world is yours.In This Issue:Keep Politics Out Of InvestingBitcoin Thoughts And AnalysisLegacy MarketsRio De Janeiro Buys CryptoCrypto Is In "Napster Age"The Wolf Of All Streets Podcast Ft. Mike McGloneMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #416 - Keep Politics Out Of Investing
The Wolf Den #416 - Keep Politics Out Of…
The Wolf Den #416 - Keep Politics Out Of Investing
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. Politics and investing are like water and oil - they don't mix.Letting your personal political agenda or belief system guide your investing is akin to looking to the stars for patterns or having your hamster decide what coin to buy. People often approach the crypto space through the lens of their own bias. It is always better to approach any investment, especially a new asset class, as a blank slate.To be clear, I am using the term "politics" broadly, not specific to your nation or party affiliation. This is about your personal biases.Politics exist everywhere in crypto. Some people believe deeply in privacy, while others are more concerned with decentralization or opting out of government controls. People with similar politics often gravitate towards the same projects and protocols. To confuse the matter, "likeminded" communities are often divided into subcommunities ie. Bitcoin Cash, Ethereum Classic, and Bitcoin Satoshi's Vision.Here are some examples of "politically" driven projects that have largely failed investors.Monero and Zcash were once the gold standards of privacy investing. Chances are if you hold either of these tokens, you are down on your investment, and still holding because of your belief in the concept.There are people who's beliefs in crypto surround banks, centralization and payments. This drove many to passionately invest in XRP. Holding this token has likely lost you money, as it has lagged behind the market. Further, countless competitors have arisen, including stablecoins which offer the same benefits without the volatility.Maybe you identify with a founder, their team, or their vision. It you choose wisely this can be profitable, but more than likely this will lead you astray, because you will be inclined to forego wise investing strategies and go all in. Further, you will be dogmatically attached to the investment, refusing to see the signs that it is a failed idea. This is how investors end up riding a project to 0.Another subset of political blunders includes popular forks such as Ethereum Classic, Bitcoin Cash, and Bitcoin Satoshi’s Vision. These coins were created by passionate leaders driven by their personal politics about a coin. They were strong at the time of their split, but are largely ghost towns today. When it comes to hard forks, being a contrarian is a losing proposition nearly 100% of the time.I am not trying to pick on any of the coins or projects above. Perhaps some of them haven't reached their full potential. These are mere illustrations of politics gone wrong in investing.So how should investors approach the market, if not through personal politics and bias?There are many ways to skin the cat, but the most obvious answer is to follow the money. I don’t mean starting with the most hyped coin or NFT, but rather understanding where the market is going, whether you like it or not. There have been clear, profitable trends in crypto over the past years. DeFi summer of 2020. NFT summer of 2021. The current metaverse boom. Instead of approaching these with preconceived notions, an investor should dig deeply into the notable projects with an open mind.I am guilty of this, having been largely dismissive of the jpeg side of NFTs. I could have taken a more serious look and bought a Bored Ape or Punk when the idea was just bubbling, but I quickly dismissed it as nonsense. I was wrong.Following the money also means changing your view over time as new and better ideas come to the table.Strong opinions, loosely held.Once you consider the values and concept of a project, also consider the strength of the white paper, alignment with current narratives and the future outlook. Politics should be at the bottom of your list.Instilling your politics into your crypto investing is a fast track to maximalism. We know that rarely works. Even if a maximalist nails one investment based on a political belief, they inevitably miss out on future investments, their growth stunted. Let other, more relevant attributes guide you.If you can get out of your own way, the world is yours.In This Issue:Keep Politics Out Of InvestingBitcoin Thoughts And AnalysisLegacy MarketsRio De Janeiro Buys CryptoCrypto Is In "Napster Age"The Wolf Of All Streets Podcast Ft. Mike McGloneMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO