Make or break time in crypto
I don't know who you are or what you do, I can only speak for myself.
Over the last two plus years, I have been working with crypto and Blockchain in various ways and while it hasn't always been an easy road, I have successfully managed it literally, day in and day out. I haven't missed a day of work since mid-2017 and if I was to calculate all of the hours I have poured in, the value in US dollars per hour would be hysterically low. If I was to sell all of my holdings now, I would make around 6 months of a Finnish average salary; I could have easily got a second job and spent less time and effort and bought in more than all the crypto I currently own.
Do you know why I italicized "own"? It is is because the work I have put into the blockchain industry is mine and all that I have written is mine also. If I had been working for someone else and buying into crypto - I would be more a speculator, not an owner. While still digital, my content has added tangible mass and value to the entire crypto industry and the economy it is to become, which is something significant that many people overlook when it comes to participation through contribution.
But, even if I did have available funds to buy crypto instead of earn crypto, would I have bought? I would say it is highly unlikely because if most people who could would, the market cap would be in the many trillions already. Why don't they just buy? Because they haven't built the understanding of where this is all going yet, they don't trust it - they value the current fiat value more than the future value of crypto.
This is the funny thing when it comes to people who have even the slightest amount of disposable income, as if they really believed that there was a future in crypto, they would not have that disposable income at all, as it would be allocated. Of course, there is the need for risk management but, if the risk is investing 5 dollars into crypto or a Starbucks Latte, the choice should be pretty easy which one has the higher risk of loss as, the coffee returns nothing past a caffeine fix.
While the hourly rate is laughable, the thing is that I can't go back in time knowing what I know now and put down 1000 euros on 7 cent Steem or hold or sell the various wins and losses I have made. However, I do hold crypto at the moment and I do not plan on selling it anytime soon. For those that understand that I should have bought more low, sold more high and bought back low - how many of them hold as much Steem as I and, how many are willing and able to put 18 thousand US dollars into buying to the same level? Not many I bet. Those that are and can - already have.
What this means is that even though I have made many mistakes along the way when it comes to the economics of it, I still hold significantly more than not only most people in crypto but, nearly everyone on earth. As prices continue to climb and I continue to accumulate coins via earning and buying in, if the industry does go big, there will be very few people on earth that will be able to buy the value of my holdings.
What does that mean?
Well, it means that while what I hold now is laughable if related to an hourly wage over the last 2+ years, in the future these 2+ years could not only be of an incredibly high value in relation to my own current earnings, they will be high in relation to most people's earning at a global level, no matter what country they come from.
According to the Bureau of Labor Statistics (BLS), the median wage for workers in the United States in the fourth quarter of 2017 was $857 per week or $44,564 per year for a 40-hour workweek. Wages were 0.9 percent higher than at the same date for the previous year. source
How much of that $44,564 is disposable income that can be spent on investment? 10%? that means if all things remain equal with prices, it would take the average US earner about 5 years to be able to buy in at the level I hold and that wouldn't leave them much breathing room for much else. Yet, I have been able to get that same hold in a little over two years as I haven't had to worry about the disposable income bit and, I don't mind working weekends and public holidays in crypto. If Steem hits its ATH of 8.30 again one day, it will mean that the 43,000 Steem I hold will have a value of $356,900 dollars or, 8.1 years of the US average salary.
What this means is that the last two years of laughable hourly value would be 4x the average US salary per year and I haven't had to use any of it on living expenses, food, entertainment. Even after tax, that is a pretty interesting amount of value generated through my production and interaction. In my books, that is energy well spent toward an investment considering that for the most part, I wasn't able to buy in during most of that time.
Wages were 0.9 percent higher than at the same date for the previous year.
Then there is this bit of the paragraph above as if we did look at this as a wage, What is the increase in earning if it goes 10x, 20x? What is the inflation rate? What will the inflation rate of fiat be if suddenly a mass of people with billions of dollars can start demanding goods and services with crypto? - Another thing to think about for the future. When there was a mining boom in Australia some years back, the disposable income on average skyrocketed but, it was in a narrow selection of people. It still drove housing prices and living costs up meaning while some could afford, the real average struggled heavily.
As I see it, there are going to be two forces working to break fiat, one is the sheer fragility of it now due to mismanagement and greed, the second is the external value of crypto wealth applying demand pressure on goods and services with value "out of thin air". Your crypto value is soon going to be an economic tool that affects the status quo of supply and demand and if there comes a point that a person will rather sell their house for Bitcoin than Euro due to stability of value - centralized currencies are in trouble.
As said, I can only talk from my own experience in the crypto world so far and there is still a lot of uncertainty surrounding so many factors but, I am taking the chance that the time spent and the holdings gathered to own are going to be more financially valuable than the other things I have done in the last two years - and most likely, the last ten.
if it all breaks up and becomes dust, that is the same risk I faced when I started my business and every relationship I have ever been part of. If you aren't willing to invest time, money, effort because of the fear of loss - how are you alive and, what kind of life is that, as everything carries associated risks.
Willing and able...
Most aren't.
Taraz
[ a Steem original ]
Risk versus the reward. That is why the time is ok as you haven't invested physical money or loads of it. Bit of a downer I know as time you can never get back , but you learnt something about your self on here at the same time and have enjoyed the interactions with others. The chances are high though that it will go a lot higher than we all think and 20 or 30 times the price now is really nothing as we all think it could have at least another zero on the end at some point.
I have lots of ideas for posts from today but I have already posted four and I feel people will get annoyed :D
I do think that there are going to be some very big surprises in crypto in the coming years and I am Banking on one of them being Steem.
I am kind of banking on it as well. I am hoping for some extra money coming in now from my business to help fund a small portfolio but Steem will definitely be the main one . I don't want all my eggs in one basket either so it is a tough one.
diversify into some decent holders, put them in storage and wait.
That is the plan and not be stupid and leave them on an exchange to get hacked like last time. I have learned a valuable lesson now and a little wiser.I haven't done much research into what is good or bad so will have to do some homework.
Great perspectives as I see it very similar and cannot wait for more of my monthly expenses can be paid in crypto to start the transition earlier. When that happens and people opt to be paid in crypto, we will be saying a totally different story! I don’t focus on how many years salary I would have but instead with the benefitnof earning here is how much we can earn relative to our careers; reducing the dependence of the corporations that currently provide work.
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Did you read the Elon Musk Hyperloop article yesterday or so? They are paying engineering hours in future shares and will start tokenizing the process.
Me either but it is a handy way to visualize it with some concrete numbers. :)
I love the fact that you acknowledged that working the steem and crypto space automatically makes you an owner the truth is that it means you're building and what you're building belongs to you long-term irrespective of prices really. As a matter of fact people are ignorant of this.
ownership is going to be vital in the coming decade or two and crypto and BC give people who might not have a chance under normal circumstances a key into the game door.
For people who like blogging and social media, investing in Steem time and effort is a no brainer because in mainstream social media one gets no direct ROI at all. I received my 1st dollar after 3 months writing on my blog but on Steem the first payout came just 7 days later. If I started blogging now, I would definitely choose Steem and not traditional blogging platform simply because it's getting increasingly harder to earn money blogging traditional way.
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A whole lot of people could do it through @Steempress-io and even earn some SP votes on their blog directed of Steem Hopefully, the guys get the word out there further.
Actually for me, if I have some reasonable amount of cash, it will be hard for me to invest it in cryptocurrency. The high level of volatility is really scarcely. Always will I prefer the investment option
Most people don't understand enough to risk it, which is why most people won't benefit as highly as those who do. It is the way of the world of risk. Never put in what you aren't wiling to lose completely.
You will be a millionaire when the average price of Steem hits 23.2$. Probably earlier because you will earn more until that happens.
23.2$ does not sound unreasonable within the next 5 years because the high on Bittrex was already 9.2$ and we are still in crypto infancy stage.
A lot of people wish they had 43000 STEEM in their wallet^^.
yep and it is something I have not yet come to terms with now. I don't spend it before it happens though :)
10 dollar Steem puts the total market cap at 3 billion, that is very low and we almost got there before. When 1 billion people enter into crypto in 3-5 years, it is going to be a lot more. What is pretty interesting is that 23-30 is about where I reckon the next large run will take us before the corrections.
THey wish now. 5 years from now it will be near impossible to have and I am pretty fortunate to have got in when I did with the drive I had. I am pretty sure I would not have it if I went with memes and shitposts from the start.
And it's fun being here don't forget, which kind of reduces the risk!
Talking of fun, I found a picture of you tonight:
Cheers, striking likeness!
You got a 40.32% upvote from @ocdb courtesy of @tarazkp! :)
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