Crypto Elephant

Today's post is about something I have noticed on social media, that I am sure many people encounter on a daily basis, but might not be fully aware of it, hence the headline of my post.

Elephant in the room

Over recent weeks, when looking at my social media accounts, I have come to notice something quite interesting about most so-called bitcoin/crypto experts and evangelists. I am referring to the posts made by wealthy / well-known individuals that are somewhat active or involved within the blockchain space.

Many of these so-called experts deliver daily posts on blockchain / cryptocurrencies / bitcoin. They talk about where the technology is going, its use cases and provide us with their thoughts. While I am not an expert per se, I have noticed that these posts are very misleading in most cases.

These individuals usually have 1000+ followers who all believe in what they are saying. This gives them the power to influence the minds of everyone wanting to become involved in blockchain, or who wants to invest / hold cryptocurrencies.

While there isn't necessarily anything wrong with this, I do think people need to start doing their own research on the topics, and stop following these influences. Unless the latter is Vitalik Buterin or anyone that is actually a blockchain developer and knows the code.

Problem

The problem I have with these individual, not to mention names, but most of them.. Is that they change their minds on a daily basis, due to the fact that they don't really know what is going on. They pretend to be on top of the technology, by are influenced themselves by other influences. A story might start out in some specific way, which then gets shared with someone else, who changes the story ever so slightly, and the cycle continues.

I have seen it time a time again where these guys would say something like, you should invest in bitcoin, and now is the best time. The technology will become widely adopted and there is minimal risk. The next day, they would say the complete opposite, which would go something like this, bitcoin was developed by coders who do not want to follow the rules of society, and who wanted to create their own currency and do not want to abide with the law. Bitcoin will ultimately fail.

Where to go from here

I would suggest that anyone wanting to become involved with bitcoin, do their own research. Follow the actual guys behind the code, and make your own conclusions.

In my opinion, cryptocurrencies (not all), are here to stay.. but even so, there will be many ups and downs. Not to mention the regulatory hurdles.

My rules for buying / investing in crypto

1. Only invest or buy coins / tokens that fall in the top 10 market capitalization. Even so, do your research, and form your own thought on whether it has potential. Top 3, even better.
2. Steer clear of ICO's, for now Most (not all) companies launching ICO's will never be successful, and you are most like going to end up losing some (if not all) of your funds. If you really want to get in early, make sure that the teams involved have proper advisers in their team, and if they have received investment, that it is from well-know entrepreneurs who have achieved a lot of success investing.
3. If you decide to invest in Bitcoin/Ether/Ether Cash, be sure to invest for the long run. Markets are still very volatile, and swings occur on a daily basis. The only way to actually make a profit after fees, is to hold your crypto for longer terms.
4. Don't invest money that you can't afford to lose.
5. Lastly, to invest in something, you need to properly understand it. Warren Buffet never invested in anything that he didn't understand. Blockchain and Cryptocurrencies are truly amazing technologies, but you have to understand. Do your research, study, code, and stay on top of the technology. Only this way, will you truly make smarter investment decisions. I suggest you read "Mastering Bitcoin 2nd Edition" or "blockchain". Both books are widely available, and should form the basis of you education.