Basic principle for investment - No matter is Bitcoin, Stock, Real Estate, or yourself

Pretty much everyone in their life will face the problem to choose what to invest at least once.

You may try to figure out if you should invest Bitcoin, Stock or Real estate. Or may even if you should stay in school, taking education is an form to invest to yourself, or to find a job to start making money, to move out from your parents’ house. Whatever the reasons could be.

But the problem is whether it is the right direction to go?

There are millions of books or courses that try to teach how to evaluate the risk and return, or special skills or technique that may help you to build advantage to win this game.

You may have to same question as I had.

I asked myself If there is a basic principle I could follow to make sure my decision will lead to success.

Well, there is one.

Limited lost, Unlimited return.

What is mean?

Let’s talk about bitcoin, for example.

I know someone bought bitcoin in 2011 and still holding all of them till today.

Yes, them did not sell when the huge dropping lately.

Most people bought bitcoin but sold them when its price dropped like waterfall, few times in history.

What make them different form the most people?

Well, based on my knowledge, when they bought bitcoin, it was an investment of limit lost if they are wrong, because it is just the little portion of their wealth, and their income is not depending on it at all.

If they loss it all, it won’t hurt them too much.

Also, the most important, their ability to choose is getting better.

It will be unlimited return if they are right.

But how much return you can make?

Well, yes, you need to do some research yourself.

How do you know it is enough to make the decision?

It depends on how far you can see the future of block chain?

Most people think that the decentralization is one of the most important character of block-chain. Is it true?

Let’s do some analysis.

There are four types of operation for regular data base, which are

• Create
• Read
• Update
• Delete

But date base of blockchain only have three:

• Create
• Read
• Write

Yes, just that little difference, but it made a dramatic change.

Because nobody can change the data any more.

It is the foundation of the future, like big data, sharing economy, tracking economy, cooperation economy, crowdfunding economy.

Nothing will work without “the little deference”. Nothing will work if data can be easily changed.

Why date unchangeable is so important, because our future is and will be more heavily depending on data.

The point is not if it is decentralization.

Decentralization is just the appearance; the core is unchangeable data.

An Example is an American company, called Skuchain, which use block chain to track contract, payment. Boeing is one its client. Their service is based on IBM’s cloud computing, it is concentrated, not decentralization.

More valuable applications based on block chain will appear when more people have deeper understanding of it, for sure.

Will you feel more confident regarding block chain If you do same thing above yourself?

Will you be different if you can do same above when you see the next opportunity coming?

There will be more and more chances keep coming in the future for sure.

Practice, be ready for them.

Peace.