RE: Why is Crypto so hard?
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I think part of it is trying to squeeze out higher gains. Some of the most profitable companies, for example, do not have the long term results that Bitcoin has. Apple's net profit margin is about 24%. Microsoft's net profit margin is about 34%. Tesla's net profit margin is about 24%. Even a bank such as JP Morgan Chase only gets about a 24% net profit margin. Yet Bitcoin's long-term gains are even higher. All we have to do is buy and hold.
Over a 5 year period here is how they compare:
- Bitcoin: +900% (highest reward, highest risk).
- Tesla: +754% (strong but volatile, despite low 7.26% margin).
- Apple: +190% (stable, tied to 24.3% margin and services).
- Microsoft: +150% (consistent, driven by 35.43% margin).
- JPMorgan: +122% (modest, supported by 21.21% margin).
Obviously, over the short term there will be ups and downs. But you can see that long term returns can be life changing money. In spite of this, it's not enough for the gamers. Not only do they want higher returns, they want them NOW.
They don't value the gift that's in front of them because they want more and want it faster.
Even here on Hive, we see people selling their Hive and liquidating their HIVE to buy tokens that have a lot of hype but no long term gains. HBD, if we hold and reinvest interest, it would yield a 100% return over five years. HIVE itself is a gift because you can mine it with no investment other than time and talent. And your earnings compound as your HP increases.
They want life changing money without first changing their lives. And they don't realize that they already have life changing money if they can hold on to it. Instead, they move their capital around in an effort to beat the simple gains of BTC because 900% is not enough. Even those who somehow manage to hodl start looking for ways to generate yield from their Bitcoin.
In truth, crypto is not hard. We just make it difficult on ourselves.
I stopped watching technical analysis on YouTube for that reason. I realized that these guys are traders who are always looking for the next big thing for quick profit. They go through all kinds of effort when all they need to do is buy and wait.
I've a lot of people do this over the years: they liquidate their Hive assets to buy meme coins. Some of them make profit and won't use some of that profit to buy back the Hive that acted as their initial investment. It's completely saddening, but some of them also get burned and then they lose all their initial investment (which is the Hive they've 100 to 90% liquidated)
Indeed, Hive is a blessing, and the holding HBD mechanism when it's the bull run can literally help you build your HP, you can even take back some profit, put then into IRL investment and use some of these gains to but back Hive in the bear market. This playbook will guarantee you maximum and Higher HP in the long run. I thought I was the only one aware of this mechanism, but then I see Hive's compounding capabilities is often underated
You're right when you say people want it all in the short run. I've been here 7 years and I can attest to this.