Think Twice Before Investing In Crypto

The world of crypto has become a minefield so be careful out there...

Over the last few months, the price of Bitcoin has risen dramatically from $4,000 in March 2020 to over $63,000 in April 2021.

And as the price rose, the interest in Bitcoin and crypto in general re-emerged.

Suddenly everyone is interested because they keep reading about people who have made 1000%+ gains and there is a big FOMO effect.

Over the last few days, the price of Bitcoin and other crypto has crashed losing about 40% and now there is a lot of talk about buying the dip.

Unfortunately as the interest in crypto has skyrocketed and the amount of money to be made has gone through the roof, crypto has naturally attracted a lot of bad players too.

One of the most common types of scams are rug pulls where the founders sell the bulk of their holding and/or the liquidity destroying the crypto's value.

Then there's traditional Ponzi schemes where older holders have their gains financed directly by new people joining.

And the most popular scheme is the old pump and dump - hype up a pointless pink sheet, flog it to as many people as possible to drive the price up and then dump all of your holdings when the price gets high enough.

And aside from the scams there are other big problems too.

In the 12 years that we have had crypto, we continue trying to understand exactly what problems it really solves and why those solutions are better than alternatives.

The infantile state of cryptocurrency means that there are natural fluctuations and risk but it also brings weird tribal effects.

Investors are no longer satisfied with a 10% annual return. Now you need to get 1000% per month - this has almost become an expectation.

And the tribal nature means that people build up huge cult-like hubs where they talk with like-minded people about the huge prospects and the bright future.

And the same tribe will then seek out any dissent or opposing views and meet them with mindless profanities, obscene comments, threats of violence, death threats and active attempts to destroy people's careers and livelihoods.

I know because I am one of the people that this has happened to.

And this points to a big problem that we have in the world of crypto where any meaningful debate is impossible and descends into childish slogans.

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#Crypto #Bitcoin #Cryptocurrency

[SashaYanshin]

Please make sure you watch the video first and then feel free to share your thoughts.

[weneedtoevolve]

Bearish opinions are just as important as bullish opinions. Some people are so emotionally attached to their investments and any bearish comment is a personal blow to them.

[cyanrazorCel]

You make a good point about smartphones. They kicked off so quickly. But one big difference about crypto is that it's decentralized, and phones are one of the most centralized projects out there.

[julianatlas]

You mentioned you are a mathematician, I would personally love to see videos with more actual maths, explaining formulas like compound interest for example, or modern portfolio theory. I don't know if there is a big enough audience for this but I'd like it a lot!

[neillcain]

Appreciate the frequent and informative content, Sasha. These - seemingly daily - drops of 10 minutes of relevant content is what my YouTube feed has been screaming for. And finally, I'm hoping you know the answer... Wen lambo? 🤣

[BNT]

Investing and crypto in the same sentence?

I owned a small amount of crypto, given the recent crash I bought some more, around £500 all told.
Crypto is a wild ride, there are not many trades you can make that can tank 60% in 24hours followed by a further 20% loss in another 24hrs. To then rise from its -80% low to gain an additional 60% in another 24hr period.

Its mad, its great fun; but absolutely no way would I use the term investing when discussing crypto.
I suggest it is more of a 24/7/365 horse race that can pay out big or send you home broke; good fun if you can accept and afford the potential outcomes.

[samprestn]

I made a small purchase of BTC at $45.6k thinking I was buying the dip 😂

The past week has been wild but it’s entertainment. I generally don’t like alts and agree that most of crypto is rubbish. I hold small BTC and ETH amounts as I’m excited by the new ‘asset’. It’s like calculated fomo 🤷🏻‍♂️

[nicklombard]

Great video. Am new in crypto and was hesitant but decided to give it a bash. However coming from old school investing due to my age, I found a lot of terminology such as "projects" sound like gobbeldygook to me. I was weary and even more so now. Am at a small loss with my crypto (
ADA) but holding to try recover some of my losses, then buy buy crypto. No more for me. Gimme real brick and mortor stuff.

[amaani]

I will say, a true cold hard rug pull is one where the liquidity is removed and you cannot even sell. Does not happen as often now but back in late 2020/early 2021 this was rampant on dexs esp BSC.
We need a video on young Sasha mining BTC back in the early days.

[markusass]

Governments won't allow rivals to their upcoming digital currencies. So how long have private cryptos got? We should know between now and 2030, no doubt.

[parkmantle]

Sasha - very impressed with your analysis here. A friend of mine was telling me at the weekend that he is creating his own crypto currency (coz anyone can) which won't, like the vast majority of the other cryptos, have any intrinsic value but the hype around these coins is so phenomenal that he anticipates that people will 'invest' in it anyway. As you say, the actual use cases and real world utility for these coins, decentralised platforms, smart contract providers etc is actually quite limited (but this is growing) and there is not enough space for all the entrants in this space. There will be a major shake up at some point but in the meantime people are making and losing fast bucks due to the hype. There will be blood on the carpet - I only hope not too may people have invested their life savings or over leveraged themselves coz they will be the major losers at the expense of a few that make a few million bucks.

[thekraken]

God I love this channel. Very mature and informative point of view Sasha as ever buddy. I myself got cold feet a little while ago on Crypto as don't understand it fully at the moment (more research in the future) and bit to volatile so cashed out on Etoro and reinvested in Tesla, Amazon, Nvidia, AMD that's just me folks 😉

[marky]

thought i would spend some crypto to get some household furniture etc, no one even accepts cryto, so whats the point? I have now sold most of it before the crash and dont think I will be putting anymore into it, the only people making it big at the moment is Coinbase, Binance etc from there stupid fees

[rishiarora]

Bang on analysis Sasha!

I agree that crypto has a place; I think the argument where the FED and BoE printing unlimited money overtime and having something that’s finite in supply really appeals to me but as you mentioned; you can have thousands of crypto currencies so effectively they are the same.... keep up the impeccable analysis.

[DafyddMorse]

Quality analysis, as always Sasha. Keep up the good work! As a mathematician I feel it’s worth it for me to have a small percentage in BTC, ETH and ADA. I think the expected value will be greater without taking silly risks. I’m comfortable with 5% at the mo. 👍🚀

[julianatlas]

I agree with not trusting small cap coins (shitcoins), but I disagree there are no genuine use cases for Blockchain. My two examples will be Ethereum and Monero. ETH gave us NFTs, and having a public record of ownership is actually a new thing. Monero is a privacy coin without a public ledger, like digital cash, it's used in the dark web and such. This is great for people who live under tyrannical govts, and people who care about privacy. This are two examples of current actual value provided by Blockchain today

[_TeaMaster]

To be honest, the further it goes, the more I become convinced that some people were just born to make bricks in the factory their whole life, any exposure to the investment mechanism can only harm them. Like, seriously when copy, of a copy, of a copy of a busted pyramid scheme meme coin, gets market cap in hundreds of millions you have to consider whether or not this could have possibly happened just due to some mild lack of education.

[MarcinPolanowski]

Very brave head above the parapet!
Well done Sasha, some people will take things on board others will come here to diss me and you.

[isitpossible]

Thanks Sasha - do you own any cryptos ?

[billmccreath]

Thanks Sasha, great advice. Be good to know what resources you use to track and research stocks.