Hey readers, I’m back this weekend with another topic. This time I’m trying to share some of my personal opinions on the current Crypto Market in India and how I see this going forward. But before I begin, the opinions are all personal. In no way I’m a financial advisor, please take your own risk measurement steps. Also, I’m not trying to discourage or encourage you for Investing in, you can just read this article and leave or dig deeper to look at finer details.
Today, I’ll start the blog with an emotion that is very strong and quite hard to ignore. The emotion is “Greed”. Greed is the exact opposite of Fear. Both these sentiments drive all the financial markets. Especially in Crypto, most people jump in because of the former. When you ask newbies who joined less than a year ago & ask why did they even start in the first place, you won’t find a valid reason from their end, and that’s just okay. I felt somewhere “Greed” in them fuelled their action of starting to Invest in Crypto Assets, not education or technology.
I’ve seen many friends of mine who jumped into the market and left without a penny. On the exact opposite side, I also have known people who did nothing but just held their positions and made insane returns.
Greed & Misery
Today, the way Crypto Investments are being promoted across Social Media platforms isn’t exactly the way I thought it would be. Influencers get paid to talk about coins/tokens which practically have no value. Let me come to them later on, before that let me discuss why I feel the advertising message is wrong.
Insane returns are being shown to young investors in their teens or twenties, to drive the attention of people who have the risk-taking capability and disposable cash. That’s just an example of how well these campaigns are laid out in sequence. When I look back at 2017 or 2013, nobody even cared what Bitcoin or Cryptocurrency was. Except for some tech-nerds or developers, the masses gave zero attention to it. Fast forward to 2021, you have comedians talking about Bitcoin, Vloggers talking about Bitcoin, Fashion & Makeup Channels talking about Bitcoin, an Uncle who used to do some random stuff on YouTube is now talking about Bitcoin, etc.
Come on, we haven’t reached the 2nd nation in World so easily. We have Financial Gurus talking about Cryptocurrency. Also, during that exact time horizon of the last 10 years, data became insanely cheap in India. Today, many Indians are coming online every day to get their work done, to attend their online classes, to talk with friends, to get entertained, etc. The Internet boom hasn’t been bad considering the youth of our nation are getting more educated this way. Also, within the exact time frame, banking has become more digitized and easy to access both for Consumers and Businesses. That’s the perfect mix for the booming adoption of any new technology.
Trusting Strangers for Investment Advice
If you’re investing just because you saw your favorite influencer talking about Bitcoin please stay away. Nobody can become a financial expert overnight. A vlogger or a fashion influencer cannot become an overnight crypto expert just because he/she made a 100% return on the money. That being said, if you play the market cycles right and that too in a bull market, even a no-brainer investment can give 2x in Cryptocurrency. But mark the words, ‘Market Cycle’ & ‘Bull-Market’. Not every year, Crypto has a bull market neither every time you can buy the dips.
If some Influencer is telling Cryptocurrency is an alternate for FD’s and Savings Schemes. Just stay away from them. That is a piece of very terrible advice. Do you know how much Ethereum Crashed after the 2017 bull market? $1000 Investment would have turned less than $100 after the bull market ended. If someone had an urgent need of cash then, their portfolio would have taken a hit of 90% or more.
3000% Return in Next 15-20 days
Purple thumbnails with over-excited images and green text of 3000% return. That’s the video we all should watch to make our fortune right? It seems everyone is watching them. If you compare the views of a person explaining the fundamentals to another guy making price predictions, it’s a massive gap. We all want to make money, isn’t it? That’s true but I don’t want any reader of this article to go down that path.
Why do we all think someone can help us build a fortune? Is every Crypto Influencer an expert in making money? How are they correct every time and we lose money? Why do they ask for money to join their Signal Groups? What is it that they know, which we don’t? Isn’t everyone living in the Information Age where data is free?
The answer to these questions came as a simple word “GREED”. Just like any other person, this emotion gets stronger if left unchecked for too long. Influencers get paid insane amounts of money to talk about an app or crypto project. The amount for a random Instagram Influencer with around 1 Million mixed followers for a Story would be close to Rs 10 Lakh or $12,500 dollars. Imagine paying a Crypto Influencer who has a great following and loyal community to talk about a Crypto Project. Why would they even care whether you make money or not, whether the app is safe or not, whether the project is secure or not. They got paid and that’s what matters the most for them.
On the other end, the people who look at these paid promotions think of getting rich. Most of them are young people in their teens or early twenties. Who doesn’t want to be rich? We spend 4 years in college but aren’t patient enough to do our own research before investing. We trust someone so blindly for everything that we don’t care for these points at all.
Looking at the broader Picture.
Take a step back, and look at the technology and shift happening with the distribution of control over money. Bitcoin isn’t a scheme for making quick returns. That might happen till the end of 2030 but not forever. If you are in this community, it’s a privilege to be this early adopter. The products being created in India and the way the entire community is being more active hasn’t been the case every year. Surely, we are getting stronger as a community and that’s fabulous. But I feel we all should take more informed steps towards education and not look at short-term gains.
Finally, before I end my speech be chill. This wasn’t something I wrote to discourage you or to make you believe I know everything. Even I have to learn and connect with new people to expand my network and knowledge. I don’t see most of the YouTubers working after 2-3 years. So why look at their short-term content. Keep researching and learning.