The Most Common Reason More People Aren’t Buying Crypto

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It’s no secret, if you want to build real wealth, you have to learn how to strategically make your money work for you. Which is why you hear so many wealthy people speak on the importance of investing. However, with investing comes risk and a lot of people are too afraid to step out of their little box and play with the real sharks. So, when an opportunity like crypto currency comes around, you can imagine just how many people are hesitant to invest. They sit around waiting to see the results and envy those that took the initiative to capitalize on the opportunity.

The vast majority aren’t buying into crypto for the same reason more people don’t buy stocks, or put money into an IRA. They’ve been brainwashed into thinking that the best way to grow their funds is to slave at a job and put their money into a savings account. Little do they realize, that’s a much bigger gamble than any form of investment. The slightly smaller majority isn’t buying into crypto because the vox populi hasn’t given it’s seal of approval, In other words, crypto isn’t “cool” yet.

There are many other reasons more people aren’t buying crypto currencies and to be honest, they’re all quite stupid. For instance, some simply don’t understand what crypto currency is. My advice, do your research and educate yourself. Others fall victim to fear, but how can you expect to achieve big results if you’re always playing it safe? A lot of people think that they’re too late to join the party. But trust me, this is only the beginning. And they don’t even get me started in mainstream media manipulation. Learn to separate fact from fiction and make decisions based on your own findings.

While all these reasons contribute to why people shy away from the opportunity to gain real wealth, there’s one reason that makes even experienced investors miss out.

Thinking that crypto is a bubble.

Here’s the reality of things, everything is a bubble, it’s just cyclical. That goes for investing in stocks. That goes for starting a business. That goes for real estate. It can even apply to employment. Literally, EVERYTHING. So, why would you let that stop you?

What happens when the housing market crashes? It creeps back up, and then crashes again and so on. People always try to make a comparison between crypto currency and the Dot Com bubble. But look at the facts, most websites haven’t gone anywhere since that bubble burst. In fact, websites and virtual presence are now essential to building your business. This will almost surely be the case for crypto. Cash is losing value faster than ever and will eventually be replaced. Now is the time to jump in and place your bet.

If Crypto currencies were a company, it would be like Facebook. It’s still in its early phases where only college students are using it and your parents aren’t going to have FB pages for at least another 6 years.

There’s inherent risk in everything: from crossing the street to making an investment. The people who are investing in crypto currency right now are the early adopters, the risk takers, and the true believers.

I’m not saying everyone should buy into BTC, but if you want to be a big shark, you can’t stay in the small pond forever. But I get it, not everyone wants to play big and not everyone can stand the fire. It wouldn’t surprise me if the average person goes into crypto investing during its meteoric rise and invests at the end of an uptrend- then watch it crash. They’ll pull out their money at the first sight of a huge loss and swear off crypto, while telling everyone who will listen that it’s a scam.

Crypto investing may not be for everyone, but if you’re willing to educate yourself about the market, develop a trading strategy, and stick by your plan- crypto investing will be a valuable financial tool. Especially if you’re someone who isn’t happy with the fact that the world is run by manipulating financial institutions. This is your opportunity to take back control.

So, don’t be foolish and fall into the stupidity trap set to have you live a life of mediocrity and fear. Educate yourself, strategize and go for the risk.

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Reducing the Risk: Angel Investing

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As a renowned investor, I get a lot of questions about how to invest. One of the questions I get the most is “Which is better? IPO’s or investing into start-ups?” To be quite frank, it is like comparing apples and pears. Yes, they are similar, but success is measured very differently between the two.

Angel investing usually means putting money into startups, so you are getting in there before private equity and a long time before firms IPO on the stock market. Your taking on the task of spotting the potential in a company long before they prove themselves. While it’s not a simple task, if you pick the companies you invest in wisely, it can be very lucrative. Take Facebook for instance, a lot of people would say that Facebook did better when it was small versus now that it is a mega stock and on the S&P 500. However, it’s needless to say, angel investing has so many risks and picking the right firm to invest in is a difficult job.

The fact is, you won’t make that much money from the majority of angel deals. It is definitely a high net worth game and you have to be willing to take a loss here or there. Even many of the best angel investors have lost money on a great amount of the deals they have engaged in. This is why the requirements are so high in many countries to be eligible to engage in angel investing in many countries.

With that being said, there are a few things that you can do to reduce the risk. Perhaps the most common way that angel investors reduce risk is by investing in tens of startups. The more companies you invest in the more likely it is that at least one of them will go on to be very successful. However, this is not the only way for angel investors to reduce risk. Here are some other things to consider:

  1. Keep in mind that angel investing is a long game. In many cases your investment is completely illiquid for years and you can’t get out for 7–10 years+, unlike publicly-traded stocks which can be sold instantly.
  2. Take the founder’s background into consideration. It’s not uncommon that many start-up founders have unrealistic expectations. This means that many of the best angel investors meet loads of founders and the ones that stick out are knowledgeable, experienced and passionate. Time is money, so angel investors can’t waste time dealing with startups who have unprepared founders and should be factored in.
  3. Ask yourself, what can you offer other than money? Plenty of founders aren’t just looking for money, even though some are. Others are looking for contacts and expertise, alongside money. This can be a hassle for some investors and if so, angel investing probably isn’t right for you.
  4. Consider hiring lawyers for obvious reasons. You saw with Facebook’s early lawsuits that many people feel wronged by these kinds of things. In comparison, ETFs and stocks are more transparent. Less things can go wrong.
  5. Location is important when it comes to angel investing. Investing in a start can be very demanding and requires that you be in close proximity to assist with some of the issues the startup will face. While it is possible to do things remotely with angel investing, it is much harder compared to normal stock market investing. It can also complicate taxes. Also, if you invest in firms outside your jurisdiction, it is even riskier. For publicly-traded stocks it doesn’t matter as much. For instance, if you are an American who buys the FTSE All Stars, you aren’t really taking any more risk than a British person, apart from currency. Same with a British person who wants to buy the S&P 500 or indeed Amazon’s stock. Private investments are different.

So, yes, angel investing can return more than the general stock market and be very lucrative if done correctly. It just takes more time, tolerance for risk and patience to see the deals monetize. Investing is all about taking chances and strategically picking the best horse in the race. There is risk in any deals that you make not matter in your angel investing or buying stocks. Therefore, when people ask which is best, angel investing or IPO’s. It simply comes down to your goals and preferences.

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Where Did We Go Wrong: Polarization of US Politics

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US politics has its flaws just as any other political system. However, people have been afraid to speak out on it. How can we ever expect to bring about the changes that this country needs if we suffer in silence?

For decades, the political system has failed many Americans, yet the American people remain blind to the ill practices of our political system. Some say that we turn a blind eye toward the inherently debilitating practices that we have adopted. Others would suggest that we have been brainwashed. Regardless, it’s time we take a deep dive into the problems that lie within the US political system and face them head on.

Arguably, one of the biggest problems that the US government faces is extreme polarization. You pretty much only have the democrats and republicans as strong contenders to face off against each other. Each side has become more and more extreme with their political views and it has gotten to a point where it is difficult for the two parties to even work together.

The US government has become extremely polarized, especially over the last few decades. This is in part due to the major media involvement in politics today. Think of all the 24-hour news channels: CNN, Fox News, MSNBC, C-SPAN, CNBC, the list goes on. All you have to do is tune into one of these networks to find two lead speakers, one with a Democrat and the other with Republican, shouting at each other over the latest topic of discussion. Neither side even attempts to stimulate healthy conversations to reach a good median in the best interest of the American people.

While partisan politics is nothing new and was probably even uglier in the years leading up to the Civil War when several physical altercations broke out between members of Congress while at order – but technology has only increased the coverage and audience for mass media in the last couple of decades. Political figures are now quick to verbally attack anyone showing the slightest leaning toward the opposite side of any issue, even in their own party. On top of it, even those who agree with their opponent are routinely attacked simply because they identify with the opposing political party.

But here’s the thing. Do we, the citizens of this country, really want to hear two sides argue about what’s best for them? No! We want people that look out for our best interest. Someone who is going to be a problem solver and not some self-absorbed idiot that’s out of touch with the reality of how the average American lives. The clearest reason why people disapprove of their representative, and of the government in general, is that the majority of people in the United States would reject characterizing themselves as “liberal” or “conservative” or “democrat” or “republican,” Usually when given the choice, the majority of Americans would call themselves “centrist”, “moderate” or simply “independent”. The extreme political viewpoints in public by politicians is off-putting to most. It becomes a matter of “pick your poison” rather than “here’s a candidate that can really help this country move forward.”

It’s plain and simple… the government cannot function without some level of cooperation between the two major parties. This is becoming more and more evident people. With the extreme polarization, the government begins to feel like dictatorship. American citizens are starting to feel silenced as they are caught in the middle of the Democrat and Republican battle. The focus no longer feels like what’s in our beautiful America’s best interest, but more so which side can push their very specific agendas further along. While there are candidates on both sides who are driven by problem solving and executing effective plans that benefit the country as a whole, the overwhelming majority of politicians are mindless puppets looking to push an agenda that only benefits the select few in their groups instead of benefitting the American citizens.

The polarization is also spilling over into areas outside of politics. As mentioned earlier, the media has become intertwined with politics and only fuels the fire behind the pointless democrat vs republican battle. Not to mention, big corps are also getting in on the polarization bs. They partner and fund the political parties in exchange for pushing agendas that will only serve them. It’s getting to the point that if you don’t have a vested interest in either one of these political parties or kissing their asses, you have no say so in your own well being. And since the American people feel they have been stripped of their voices, they feel forced to just go along with it. There’s no room for independent thinkers. There’s no room for solving the issues that really matter. There’s no room for compromise, bringing together the best parts of both political parties. It’s insane!

It’s time to start calling out this system and demanding change. The government shouldn’t be fueled by an internal battle of two parties. The political games must stop. No matter what side, democrat or republican, “wins” the biggest losers in the whole ordeal will continue to be us, the American people if we don’t get a hold of this political issue. The government is meant to serve the people first and foremost. We have to let go of this old fashioned polarized way of thinking. The real solutions will come from letting go of those stupid agendas, focusing on problem solving and working together instead of against each other.

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Lessons Learned from the 1929 Stock Market Crash

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A lot of people have been questioning if we will experience another stock market crash in the near future. Chances are that it is quite unlikely. Today, we know much more than they did nearly a century ago when the stock market crashed. The crash itself actually taught us many lessons that has helped us steer away from crashing ever since. Noting that the stock market survived the Covid-19 crisis that many people fear would destroy the market, it’s pretty safe to say that Wall Street has a solid foundation and can now bear even the toughest of times.

Learning from our previous mistakes has played a big role in reconstructing the stock market to what it is today. There are many things that we know today that the professionals of that era did not know. If you had to take a guess, do you think you could name a few?

  1. The primary cause of a market crash stems from panic. That’s right, people in 1929 prematurely panicked and ultimately created their own fate. Today we know that there is no need to spring into panic mode. It only causes chaos. And even with the Securities Investor Protection Corporation in place, panic can still ripple through a market incredibly fast. Not to mention, once mass panic and hysteria starts, it’s very difficult to stop.
  2. Regulations are now in place that can slow down sell offs and prevent rundowns. For instance, curbing and halting selling for just a few minutes at a time can allow buyers and buy to cover orders to meet the demand of sellers, thereby preventing rundowns.
  3. New Instruments can significantly increase risks. Therefore, it’s important for new instruments to also have some sort of Trust accounts and some buffers. Take mutual fund companies for instance. They must hold capital in reserve to meet redemption demands just in case they end up in a position where there is a panicked market. They also undergo regulatory oversight to ensure there is sufficient cash held in reserves to meet redemption demands without having to force a fire sale of long term held stocks or bonds.
  4. Brokers who are over leveraged are considered high risk factors. There are also regulations put in place to manage the risk posed by over leveraging brokers. Recently, most brokers have had to cut back their margin offerings so that they can meet regulatory restrictions on the amount of margin they have out in the market. This is because margins have largely been the reason that brokers go bankrupt. If they don’t closely follow these sorts of regulations, the brokers end up in positions like Robinhood who the SEC is currently investigating.
  5. The stock market tends to balance out on its own naturally. Stocks that tend to drastically fall are the ones that no longer have any real value in our society. And even with those, you’ll see people (typically young, naive investors) swoop in and buy them up simply because of the low prices. In turn, the downward trend will eventually plateau or even begin to rise again. Not to mention, there will always be some new business that will end up as the next big blue chip stock. There will always be new technology developed that will forever change our economy, our society, and our national wealth.
  6. However, perhaps the biggest risk in the stock market is all of the uneducated idiots that blindly gamble with their investments. It’s true when they say greed turns off common sense, logic, and all reasonable decision making. Luckily, with today’s technology, information is always just at your fingertips. Young, fresh investors have to do their part and make sure they put in the time and research before investing instead of placing random bets.

So when people ask if I think the stock market will crash anytime soon, I am confident in saying no. We have a good understanding of the things that lead to the 1929 crash. More importantly, we know and have regulations in place that can help prevent a crash from happening again. Even through tough economic times, the foundation that we have laid for the stock market has proven to be strong. As long as people remember the lessons we learned, the stock market will be just fine.

 

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It’s 2021…Why Are You Not a Capitalist?

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Mark my words…capitalism will save your life. So why are there so many people out there who are against it? To simply put it, you have been misled, misinformed and brainwashed. While there are a lot of idiots out there that try to push a negative connotation onto capitalism, I am here to tell you that they are wrong. It has been proven time and time again that capitalism does much more good for the world than it does bad. Anyone that says otherwise is a victim of misinformation. It’s time to educate the people of the facts and highlight just how capitalism drives the creation of wealth, freedom and prosperity for all.

For most of the 20th century, a lot of the world was ruled Marxist socialist ideology and even though Marxism has been denounced across the world since it’s economic collapse, its influence has penetrated much more deeply into western thinking than most of us realize. Unfortunately, most Americans still hold many socialist theories as truths applicable to modern economics. This is a deadly mistake.

Let’s take a look at the socialist economic philosophy…

For starters, it is based on the false premise that resources are limited and that wealth comes from the accumulation of resources. Therefore, the chief concern of socialist economics is distribution of limited resources among consumers. Accumulating wealth is said to deplete resources and damages the planet. And as expanding populations continue to stretch our limited resources thinner, it will lead to more shortages and more poverty in the long run. Also, since resources are considered to be limited under the socialist philosophy, the accumulation of wealth has to occur at the expense of someone else. In other words, one person cannot become richer without making others poorer. Making a profit is considered to be theft and those who become insanely wealthy deprive others. Thus making it a key cause of poverty.

This couldn’t be any further from reality. If you honestly believe that this is the way the world works today, you are completely delusional.

Congratulations on being an idiot!

All of these ideas are myths, logically baseless, and constantly proven false by human experience. This is exactly why the idea of Marxism died in the first place. There’s nothing valid about this way of thinking. These same principles have been tried and failed miserably. Renaming the philosophy won’t magically make it work. So why are there still so many socialist idiots who believe this hooplah? Because people are afraid to think for themselves and are willing to blindly follow whatever the government says. Newsflash, pushing this socialist agenda is nothing more than an attempt to mindlessly control you and unless you stop accepting the poison they’re feeding you and begin to think for yourself, you will be screwed. No matter how us American identify ourselves —freedom-lovers, libertarians, individualists, or capitalists—it is our government’s foundational beliefs that ultimately guide our public policy.

Here are the real facts…

Nothing is a resource until someone thinks of a way to use it to solve a human problem. Therefore, resources are not limited because they are created by human invention. Literally anything in our universe can become a resource as long as we find a way to make use of it. Barely a century ago, electric lights, mechanization, anesthesia, air travel, antibiotics, computers, instant communications and a thousand other modern inventions were mere fantasies, Fast forward to today and these are all commonly used things that we take for granted now. The fact is, there are infinite resources in this world and the immense wealth was not just dug up out of the ground; it came from the human mind.

Secondly, wealth is not solely about money. Real wealth is about the empowerment of others. Wealth and generating profit is not created at the expense of others as theorized by socialists, but is actually created for the benefit of all mankind even when individuals act creatively in their own self-interest. Profit is only a miniscule part of the wealth creation; the other much greater part is passed to consumers in the form of better products, a new standard of living and allowing all of humanity to share in the wealth created. Also, as the population has expanded, we have vastly more resources at our disposal today, not fewer. We’re not using resources up; in fact, we’re creating them faster than ever before. That’s why historically we see that increasing population in free markets leads to greater wealth. The expanding population has not made mankind poorer as predicted by socialists, but exactly the opposite.

People have to get over this fear of wealth; there is always more wealth out there to generate. Stop pushing this bullshit socialist narrative that one person’s wealth means everyone else will stay poor. The fear of wealth disparity comes from the mistaken belief resources are being hoarded and must be forcibly redistributed to enrich the poor. However, in a capitalist economy, the rich are the ones who are enriching the poor through inventive wealth creation and should be encouraged to do more of the same. Forced redistribution is not only counterproductive, but unnecessary. Those who push this socialist agenda through public policies only deter the people who are creating better lives for the great good.

Those of you who still believe in the baseless socialist theories are brainwashed. Capitalism is what is needed to create prosperity and freedom for all. It’s obvious that historically there has been success in capitalism and failure in socialism. Why? Because socialism dwells only on the distribution of wealth, while capitalism promotes its creation. It is sad that capitalist economic philosophy is often misunderstood because capitalism is the only system that truly benefits us all and gives the opportunity for you to control your own destiny.

It’s unfortunate that so many Americans are Marxist-influenced without even realizing it even though it is clearly American-led capitalism that has created the world’s wealth. It’s time to stop allowing these socialist fools to brainwash you and deal with the reality of things. Capitalism is the only economic philosophy that recognizes and promotes wealth creation in its purest state, the empowerment and betterment of the people. Capitalism will succeed in improving the human condition and support an expanding population. It protects and values profit as a human triumph for all of mankind versus pushing the false narrative of thievery. Capitalism emphasizes your right to achieve goals and to create a better life for yourself and those around you. Creating your own wealth does not take away from others. It gives you the means to spread wealth by empowering others to do the same. Capitalism is the only way we as a people will prevail. Wake up and take back control of your life; the future of the world is in your hands.

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