Greetings, fellow sentient beings!
I have been talking about my quest for assets on previous posts of mine. About the importance of identifying new ones and making good investments instead of going with the flow, A.K.A. spending on consumables all the time.
It turns out I have some remarks on the broadly used definition when it comes to Assets.
I want to draw a line between what I shall here call Conditional Assets and Unconditional Not That Conditional Assets.
We mostly speak of the former. When we think about our stocks, commodities, crypto, etc. portfolio.
These are stores of value, we could gain profits on them by timing it right, but we could also lose. We purchase, hodl, or sell things like Bitcoin, Leo, Hive, Ethereum, Gold, Silver, Oil, Stocks, Bonds, etc. based on our judgement of what the chances are that they would move as we predicted. Eventually.
Based on conditions, they work for us, or they don't work for us. They mostly sit for us, less working done. People rush into interest yielding projects, too, replicating a practice that worked in the fiat/gold-backed economy.
I wonder, though, how many people were able to change their status due to receiving good interest rates. Oh, in a wildly flourishing field such as the Bitcoin market has been, it has happened already. And we hope it continues to happen. We Hope. We think it will.
In terms of the simple schematic I drew above, it would be letting capital sit in our Wallet. Portfolio of Investments or Assets.
All right, the schematic says it moves in circles, we actually invest into those assets, they are sources of more income to us and that income flows back into our wallet.
That's the passive approach. Based on hope, or predictions, or judgement.
What I have been talking about is actively looking for the active way up. Assets that do work. That are less conditional. That generate value for others and sell that value.
The type of Housing, Land, Business, etc.
Yeah, my thoughts lingered on land last time and I am being true to my word, going to take care of some small patch of land this weekend. Experiment with it, try to learn what I can do with it.
You see where I am going?
I am going into the know-how that the generations before had, still have, and I need to acquire. And the know-how accumulated in that field by others experimenting and learning.
The know-how is the asset that is far less conditional and you can bring with you across borders and across disasters. I remember a talk somewhere on the blockchain that happened lately and it was about crypto being easy to transfer when you wanted to change location.
Knowledge can do that, too. And it can work for you even if you lose your portfolio. It is the asset you need to build in order to be able to do well again and again. In a variety of conditions.
Recently, I've been buying books and spending my time learning new skills. I think it's beginning to pay off.
Cheers!
Yours,
Manol
