Generating the wealth of a generation
My wife's nephew came by today and was talking (and asking) about trading, as he has recently dipped his first toes into the pool. While I have spoken to him about it for a couple years now, the biggest influence has been peer pressure through his army colleagues, where he is doing his year of compulsory service now. While we were talking, my wife said "Don't tell your mother that Taraz helps you" as she knows that my sister-in-law disapproves of the idea of him investing into this at all -
Apparently, I am a bad influence - better to have 18 year old's give him investment advice instead...'
But, it will be his generation that takes crypto mainstream, as they will realize that they have been largely cheated out of a future, ironically, by listening to their parents.
"Go to school, study hard at university, get a good job, have a good life"'
Great advice, except the world has rapidly changed in the last 30 odd years and the opportunities and benefits of a traditional education are decreasing, while the salaries are not increasing at a fast enough rate to counteract inflation, and in many of life's milestone purchases like a house, are getting further and further out of reach. While their parents benefit from the post war saving mentality of their grandparents, their parents have extended their lifestyle by whittling away at those savings, which is part of the reason inflation has increased - but their parents aren't the best savers, they just started at a higher platform.
This means, that for the first time in a very long time, children are unlikely to be able to out earn their parents, with many struggling to get even a basic level of income. There are multiple reasons and factors in play for this, but what needs to be recognized is that the way money is flowing and the consumption habits of the general person is going to change, meaning that what has worked in the past, is perhaps becoming less relevant or maybe even harmful to securing an individual's future.
Post-war, saving was a great way to build the foundation for a better life and even the basic interest rates on savings accounts were offering some return, but that is no longer the case, with holding money being a cost, not a benefit. The whole setup is geared toward driving continued consumption, but it doesn't encourage investing into generative assets at all.
The culture has been designed around consumption that has driven money into the hands of those who are simultaneously telling the next generation to consume, because that is what drives profits. Not only does this process drive wealth into ever-fewer hands, it also means that in the future, that wealth isn't going to flow back into the community, it is going to keep narrowing.
Something has to change and while we are here changing it, it will be the next generation or two who are going to have to take the chance on the new economy, as there will essentially be no alternative, as they will have already been mostly squeezed out with too little resources to bay back into the old economic model.
Now, if you look at companies like Google making forays into EOS and Square buying Bitcoin, two companies that know the value of consumption and have the data and wealth behind them to prove it, we can see the shift happen. These are companies who rely on their ability to predict and shift trends and they know that "children are the future" consumer.
The systems of transfer and exchange are already available, the global borderless blockchains are up and running, the potential is already there - they just have to convince consumers to start transacting in the new curreny, instead of the old and, they will. They will be because not only will it be more technologically attractive and fit neatly into their digital lives, they will because it also will be the only way in which they can consume, as the wide gateways that their parents walked through are far narrower and closing further, fast.
While their parents will see this start up as a risk, it might be the only real move available for many of the future economic participants to have some of that "good life" that their parents enjoyed. Because of this, people could move en masse, meaning while it is risky for the early adopters, the masses will bring in the stability.
This has a very large impact on the economies of the world, as a world of consumption needs to put the supply where the consumers are - meaning more and more companies will shift over to the new economy making the old increasingly volatile and unstable. What this means is that the parents advice of "do what we did" will get increasingly poor and even their parents will have to start moving their assets across to the new economy, or be faced with holding a very large bag of dollars that no one wants and many companies won't accept.
Why accept dollars when you can accept an appreciating currency that can circumnavigate all of those high fees that banks demand their customers pay to transact? Why would a company pay those percentages to route money when they can do it for free or near free across blockchains? Google knows this, Square knows this, Facebook knows this and now - they are making their knowledge public.
What is going to be difficult for many of the newcomers FOMO'ing into the market, is that they are still likely to be driven by the desire for quick profits, while still lacking the knowledge and experience about what they are actually buying into. Some will get lucky, some will patiently ladder in and learn, many are going to get excitedly burned. But, this is part of the process of building a new industry and definitely, a new economy that functions in a way like it hasn't before.
The peer pressure that pushed my wife's nephew over the edge is a telling indicator of what this generation is going to do - once the real FOMO gets a hold of them. And most will understand or at least believe, that there is very little future economic opportunity open to them in the traditional economies. They are going to get bitten by the bug and they are going to go hard, as after all, You Only Live Once. YOLO!
My advice has always been, only invest what you are willing to lose completely, but I am guessing that many of the younger generation will feel that they have nothing to lose by going all in, by rolling that dice and taking a chance on forking away from the past that benefited their parents, by selling out the future of those to come.
It is going to be an interesting decade ahead, with those getting in early having advantage if they are able to pivot the economy in their favor by consuming differently - including changing the currency of their consumption.
Taraz
[ Gen1: Hive ]
Posted Using LeoFinance Beta
"FOMO'ing"...
What's does this mean?
FOMO = Fear Of Missing Out
The other one you might hear is:
FUD = Fear, Uncertainty, Doubt
Another appreciation even I do not want to do that - The way you provide a real life scenario to explain your logic. That makes everything so relatable and life like.
I was listening to a podcast where experts were explaining the value of BTC as a speculative storage asset that will go parallel with the fiat monetary policy for at least the next two decades. The use of BTC as peer to peer transaction will require stability and that will happen gradually as more users adopt and join. I think you are right in saying that what is happening with Crypto is the rise of the new economic order where economic and financial patterns are significantly different from what we are used to.
Nobody knows what is in store for them in the future but one thing is quite certain that the existing economic structure will change. Whether it will be radically replaced by a new form or whether it will evolved and adapt to include the new economic system is something we will have to watch out for.
Posted Using LeoFinance Beta
Perhaps it will be the store of value that backs other crypto assets, rather than using it for p2p transatctions directly.
It is going to raise a lot of questions and it is going to be fought over in many ways. No one wants to lose their gains, and there are some people who have a lot of gains to protect.
!ENGAGE 20
Yeah, i agree. BTC seems to be marching towards that trusted asset with monetary intricacies that will act as a reserve as demonstrated by the recent BTC purchases - square and microstrategies. Since there are parties that may lose a lot, this change will be gradual and will take some time. Hopefully, the speculative value will rise so that I can cash out a bit if really needed for the lil one's education 😇 or for a new gadget.
This is such a fascinating conversation and the phenomenon. The more I read about this, the more I am immersed into it.
This is how everyone should feel about the economics of things in general - but instead they make it boring AF so no one pays attention. :)
ENGAGEtokens.haha that nice
look like your sister in law doesn't approve of investment
I think you should do these things but you need to think ahead of thing because in today world I don't see this thing implied mush
there are job shortage and you need a connection to get a nice job after almost learning half of your life you
get a normal job normally
She approves of traditional investments.
Yes, people pretty much have to play both sides of the game to distribute risk.
yeah but i try to take the risk in crypto
I believe, projects like Hive are the best landing ones for newcomers. You can "invest" by doing and learning instead of jumping directly into the markets with your own money.
The problem with the young generations is the majority of them will have the economic pressure but the response will be to just "jump in" with poor knowledge if any and many will be easy victims of scammers.
This is what makes Hive so unique. You can just learn what a transaction is, what the value of your currency translates into fiat, the volatility compared to fiat, how one day you may have the equivalent of $10, and the next day it might be $7 or $12. Thay can be curious with very low risk if any.
I have pushed some young guys into Hive and the amount of questions they have is incredible, they get it quite fast, but then, the day the markets go down they text me asking what's going on as if I had the key to the price ups and downs. They just lack basic economic knowledge as many have never seen a fiat exchange office since the Euro appeared in 2002.
Hive is a great sandbox to jump into crypto, and now with wrapped Hive you can easily move some of your assets into ethereum and play with all the DeFi world. That's what youngers have to do before putting any single dollar in.
I've been playing around with a new project called 1hive (nothing to do with Hive). It is an open-source initiative laying in an Ethereum sisterchain. There is a free fauced you can claim every two days, and the developer and user community uses a Discord server where everyone is ready to help. It is also a great investment-free project to jump into crypto. Slightly different than Hive as you jump directly into the technology, but there are ways to earn the token called Honey (HNY) posting in the forums and helping there. I posted about it a few days ago. Just learning to configure a new wallet to "read" the xDai blockchain (this is the ethereum sisterchain), using an open-source cellphone app as BridghtID to validate you are human and claiming your coins in the fauced is already an experience to make you understand things you get for granted when joining Hive as you get your account directly when onboarding.
Yes, this is already an issue, with his friends looking for a "quick score" but not having an idea about the field of play.
Ha, this is an interesting point, as it does take away some of the transparency on what is happening in the conversions.
I haven't heard of 1hive, there are so many things going on now and I have so little time to look into them, I feel I am falling behind.
!ENGAGE 20
I love learning and try to take a look at anything which crosses my eyes, I am curious by nature and have been involved in several projects.
ENGAGEtokens.Appreciation for you
thank you.
The problem I see is that attention span has to alter for the "New Economy". It seems that right now attention span is about 12 seconds. To invest you need to pay attention, banks may slide down the money tree a little bit, but the new business of Crypto Financial Advisors/Managers is going to move way up the line. Problem is the managing of your keys, how many will turn the keys over to a financial manager? Look at how many turn their money over to banks.(myself included). Banks fail, life savings are lost.
I agree, the attention span is an issue - but perhaps there is a way around that - for example with Hive being a place of many aplications on the blockchain, people can keep jumping off one app and onto another while still being invested. potentially at least.
This guy today is now looking to go into economics and business school as he wants to be in a position to both learn and advise. It will be a growth industry - with lots of scams filling the space to navigate.
kind of like all the bank scams, and investment scams, they will grow, they seem to be a part of human nature.
Business school may be a great place to start for him, if he can avoid being a carbon copy of the institute and still be able to think outside of the box they will try to put him in.
I got a call asking for investment at the start of 2018 . After saying no, I am invested in crypto -they proudly said that they have investment options in crypto available too, and while risky, the last year had seen a 20% return. Bitcoin had gone from 800 to 20,000 that last year - and they only offered 20% back on the investment??
People still think scams are run by individuals and not by corporations and conglomerates, in America people forget real easy the bank failures from over extending and lending, of the ENRON collapse and other big business theft of the little guy and middle class guy, and even the rich guys money, scams are after all only run by bad people. But we have that attention span issue, people forget.
They seem to be unaware that Amazon pays almost no tax as well. If we could all creatively account as well as the large corporations, the governments would be able to buy themselves lunch at a street vendor.
Nice article. You sound like my son, who pulled us into this new emerging financial system earlier on. I love FOMO, learned that one last year 😃 from my daughter.
If all goes well my children and grandchildren will be in good shape .
Th is is what I am hoping for, as I want my daughter to have as many opportunities open to her as possible - but that also means having her peers have opportunity too. This has to become the normal.
Oh I so agree, its what we must teach our children. To see beyond the norm. It’s our duty to teach them well, to think outside the so called standards beyond what is expected. Grandma’s life was really good but life has changed and to be successful you must adapt. I truly think your daughter as well as my grandchildren will face incredible challenges in their lifetime’s but if we can be bold enough to yield to their young voices, we can support them and hopefully save this planet.
I am inspired by the youth in this world ❤️
Life is unfolding as it should, it’s up to us to lead the way.
Think big and beyond 😜
What a great post.. Thank you for sharing your wisdom. I am grateful to have joined the crypto industry early although I got burnt in the 2017 crypto saga but I guess it's part of the process. I just hope parents can understand that the mechanics and the dynamics of being wealthy is constantly moving. Your daughter is lucky to have you and I am lucky to have encountered you on this blockchain.. Really great post.
!BEER
Many got burned in 2017 - hopefully they held - unless they bought into Bitconnect. Never let greed make the emotional decisions.
View or trade
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BEER.I can't but begin with a 'wow' reply. And then to add these "Go to school, study hard at university, get a good job, have a good life"'.
I can relate and proudly say that I have a degree as well but still unable to use it.
Ever since this year I have been on my younger brothers neck to introduce me into this new world currency and trading, he is still able to do a thing or two in forex, you are not a bad example to your wife's nephew because you know the latest trend and we indeed will have financial troubles if we don't key into these.
Is it possible for a woman to also trade, because I have a 100% interest with no experience at all, the university degree has only removed me from list of the illiterate and nothing more for now, a career in that like even with a doctorate degree won't take me far in terms of finances like you have rightly said in this post...
There is just alot on my mind for. now but learning a skill is still the only way am keeping busy.
Thanks for reading, I tried to make this comment short
The thing with most crypto is, you can be whoever you want to be - crypto doesn't care what color, sex, nationality or religion you are
The easiest way is to ignore what you don't understand. My parents, 95% of my acquaintances avoid something new precisely because of this. So, the distrust of your relatives with the "old" thinking is quite logical.
It is a pity that if they even read this article, they would still not understand anything ... My son is growing up and I'm not sure that I will force/advise him to go to get a higher education. The only thing I want him to learn to read between the lines is the abundance of shit that TV, social networks, etc. splash on us. I think the ability to rithically perceive information is the most important skill in our life !!!
Go study, get a job, house and car, work your entire life to pay them off and then die...
That's what most parents want these days and that might have been the smartest thing to do at their time.
But these are different times and we all have to adapt.
Great post!
Exactly - things have changed in ways that following their path might not work for most people.
My kids are only required to live a good life XD
I have no idea what kind of jobs are going to be available for them or what kind of jobs they might make in the future so figured teaching them how to learn (which they're pretty reasonable at now) and find opportunities and trying to present as many opportunities to do stuff and get interested in stuff was safer than just teaching them stuff.
What 18yos is your nephew getting investment advice from? o_O
I think that the younger generation would benefit a lot from crypto and financial education overall. Times are different and I think that having a mindset focused on assets more than on liabilities will make a difference in the quality of life decades from now.