After the totally unexpected popularity of my April fools video, I thought I’d actually use this as an opportunity to discuss cryptocurrency prices and a little why I believe we’re seeing a decline in prices, what the future could bring, and what we can learn from this going forward. Enjoy! Snap/Instagram: GPStephan
Join the private Real Estate Facebook Group:
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With cryptocurrency, it becomes really, really difficult to give a valuation - much of its value lies within our own interpretation. Cryptocurrency was its own market that was difficult to value because it was ultimately a currency, so it had to test various levels and demand for sustainability. Just like ANY investment out there, even with real estate, I believe we naturally have the tendency to overestimate how high something will go, and how long it’ll fundamentally take to get there.
In reality, if cryptocurrency is to ever be successful and mass adopted, it can’t have that much volatility in price that quickly. So for everyone out there who really wants cryptocurrency to work, it cannot be largely speculated - and mass adoption won’t really take place until we’ve hit an equilibrium between utility and present worth.
I actually found it interesting that railways, radio, and the internet all went through exuberant bubbles before becoming mainstream. Frankly, I think a bubble can actually be a good thing - it gets people openly researching, investing, and finding interest in something they’d ordinarily otherwise look over. And sure, a lot of capital was also lost, but the capital that was spent ended up forming some great opportunities and technologies that we can use moving forward. And anytime you make an investment, it’s important to distinguish the difference between buying on fundamentals vs speculation. From my perspective, the entire reason cryptocurrencies have gone down is ONLY because the hype and media attention has died down. And the media attention has gone down because prices have gone down. It’s no longer exciting news to report on anymore, and those who have lost are often discouraged from re-investing.
But one point I’d like to throw out there is that with this latest craze, many people unknowingly threw in money that they couldn’t afford to lose, largely based on watching what other people are doing and wanting and believing in those same returns. The problem starts when someone jumps into something without fully understanding the implications of their actions, purely based off watching someone else, who may or may not be looking out for your best interest. This leads to the human psychology to naturally discredit information that doesn’t align with their own beliefs or self benefit, otherwise known as a “Confirmation Bias.” It’s our minds amazing ability to go to great lengths to rationalize only the information we want to believe, and tune out anything that opposes or challenges those view points. And it’s very, very easy to want to believe in striking it rich in crypto.
It’s also really easy to actively seek out the information and groups which align with our own thoughts, further perpetuating this effect. This type of tunnel vision isn’t uncommon, and I’d venture to say that no one is really above this. We’re ALL guilty of this to some extent and it’s important to be aware of it. I’m certainly no exception to this, don’t get me wrong. And as we go deeper down the rabbit hole, this is why it’s so important, with anything, to be aware of our subconscious thoughts and try to be aware when we’re closing ourself off to other viewpoints and perspectives. If there’s ever a time you feel like something is easy, risk free, and the rewards are incredible..it’s not.
And finally, when it comes to investing in general, take a step back. If you find yourself getting too emotional about an investment, you may have found you don’t have the tolerance you thought you did, you invested more than you were comfortable with, or you don’t believe you did enough research into what you were buying to feel confident about it long term.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
With cryptocurrency, it becomes really, really difficult to give a valuation - much of its value lies within our own interpretation. Cryptocurrency was its own market that was difficult to value because it was ultimately a currency, so it had to test various levels and demand for sustainability. Just like ANY investment out there, even with real estate, I believe we naturally have the tendency to overestimate how high something will go, and how long it’ll fundamentally take to get there.
In reality, if cryptocurrency is to ever be successful and mass adopted, it can’t have that much volatility in price that quickly. So for everyone out there who really wants cryptocurrency to work, it cannot be largely speculated - and mass adoption won’t really take place until we’ve hit an equilibrium between utility and present worth.
I actually found it interesting that railways, radio, and the internet all went through exuberant bubbles before becoming mainstream. Frankly, I think a bubble can actually be a good thing - it gets people openly researching, investing, and finding interest in something they’d ordinarily otherwise look over. And sure, a lot of capital was also lost, but the capital that was spent ended up forming some great opportunities and technologies that we can use moving forward. And anytime you make an investment, it’s important to distinguish the difference between buying on fundamentals vs speculation. From my perspective, the entire reason cryptocurrencies have gone down is ONLY because the hype and media attention has died down. And the media attention has gone down because prices have gone down. It’s no longer exciting news to report on anymore, and those who have lost are often discouraged from re-investing.
But one point I’d like to throw out there is that with this latest craze, many people unknowingly threw in money that they couldn’t afford to lose, largely based on watching what other people are doing and wanting and believing in those same returns. The problem starts when someone jumps into something without fully understanding the implications of their actions, purely based off watching someone else, who may or may not be looking out for your best interest. This leads to the human psychology to naturally discredit information that doesn’t align with their own beliefs or self benefit, otherwise known as a “Confirmation Bias.” It’s our minds amazing ability to go to great lengths to rationalize only the information we want to believe, and tune out anything that opposes or challenges those view points. And it’s very, very easy to want to believe in striking it rich in crypto.
It’s also really easy to actively seek out the information and groups which align with our own thoughts, further perpetuating this effect. This type of tunnel vision isn’t uncommon, and I’d venture to say that no one is really above this. We’re ALL guilty of this to some extent and it’s important to be aware of it. I’m certainly no exception to this, don’t get me wrong. And as we go deeper down the rabbit hole, this is why it’s so important, with anything, to be aware of our subconscious thoughts and try to be aware when we’re closing ourself off to other viewpoints and perspectives. If there’s ever a time you feel like something is easy, risk free, and the rewards are incredible..it’s not.
And finally, when it comes to investing in general, take a step back. If you find yourself getting too emotional about an investment, you may have found you don’t have the tolerance you thought you did, you invested more than you were comfortable with, or you don’t believe you did enough research into what you were buying to feel confident about it long term.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3
CNBC brought me here 👍
I love the thumbnail you put on this one.
There is no cryptocurrency only Bitcoin
Graham do you ever find yourself going back and searching the transcripts of your videos?
The market got ahead of itself, and will again
Or. You can look at the forex charts
Enjoyed the analysis
we dont believe u
Bitcoin is up today by 14%
Can't help but think of Warren Buffets #1 investment advice. Never loose money
Hey this was a really smart analysis of the cryptocurrency market. A lot of hype and human emotions goes into the market that some people just outright ignore.
Also! I think I got into crypto like a week before you lol, I followed that exact pattern of BTC>LTC>XRB/NANO. Sadly, I got half my stack caught on bitgrail…
People that are offended by a "joke", which you do every… year two years?
Have messed up mindset. They are messed up. I understand that they might have 5min and they didn't want to spend that on a prank video, but that's how life works, they should deal with tis and be positive.
They will comeback to you because they like to learn from you, they care what you have to say, they aren't just going to stop because of your joke which is April Fools.
This is nonsense.
It's not everything about them, I like to see Graham to any other YT have fun. They aren't obligated, nor they will never be to be this perfect human beeing for your command.
You lose some, you gain some. Perhaps at the end of the video you could add more 'facts' to contradict what you said, that might have been better, but still.
These people are those who aren't real fans 😀
They are like, a friend goes on the street, and they won't take him nor help him. Are they really friends? I don't think so. Are they really fans? Nope.
Kinda like witchcraft
You said all that very well I'm impressed lol good day
UNSUBBED because of lack of bitconnect memes
yes you could have sold nano for 31 at bitgrail and never get your money out of this fucking exchange…. your not the only one talking about nanos highs and possible sell opportuniy, at the same time you and the others dont see that false reality as bitgrail was the only exchange at that time around where you could have sold your nanos. just shit! and I'm in to nano since .22 dollar.
Come back cryptocurrency, we love you 💖
You probably don't even know what a halving is or when the next one is! Why don't you do a little research before you go shooting your mouth off! For your information, there have been tons of "crashes" like this throughout bitcoins history and it always always ALWAYS comes back stronger than before! You're JUST like Tom Leykis and Warren Buffet and all those other old farts who are too narrow minded to wrap their brain around bitcoin's utility!
Cool lamp. Whats its name/where can it be bought?
Nice vid.
Graham this is totally off topic but what do you think about going into the restaurant business? I would like to know your opinion
You're right. Just like when people bought into real estate and lost their underwear in 2008.
I truly expect Bitcoin to be back at $20K or more sometime in the not so distant future. If those people that jumped into Bitcoin at $10K or $14K or whatever are still in the market, they have a chance to make all their money back and more.
Nice! Very interesting and you made some good points Mr. Graham
Take me under your wing, wise guru.