I had a conversation with a relative yesterday, similar to the one many of my fellow Steemians are certainly having from time to time, especially during some celebrations, where entire family gathers to eat around the table.
So yesterday we celebrated Midsummer and before the time came to eat this relative (this year he is graduating from the high school) and I were discussing things about tech, future, brands, crypto and investment.
When the conversation turned to crypto and investment, his opinion was that people are reluctant to use crypto in everyday life for purchases and transactions because in the hopes of appreciating in value.
I told him that I can easily transfer some of my crypto holdings to Wirex Visa card and use it every day. He asked me if I have done this already to which I said, no because I would not want to use it now because maybe in the future the price of Steem will apreciate and I would be like the famous Bitcoin pizza guy.
So then he said that he is right, people are just speculating on the price or hodling for the future gains which in a sence makes crypto nothing more than a massive Ponzi scheme. In his eyes.
Because crypto prices fluctuate so much, he said he prefers to invest some money into index funds which don't carry that much risk and even though they don't produce so much return (like in the crypto bull run), the risk is very small and the returns over long-term period are near certain. According to him.
Then the time came to eat and we ended our conversation but just before he went outside, I asked him if he has invested any money into index funds so far?
He said not yet, but he's thinking about doing it. And I said, if he believes in it, every day that passes without him doing anything about it and only thinking about it is a loss for him.
He of course said that he needs to do a careful research first.
We've all heard this story before, don't we? Some kid who knows so much that crypto is a scam and has a different, safer investment plan in mind BUT doesn't do anything about it, only "research". Doesnt have skin in the game.
It's one thing to talk about investment when from the theoretical perspective alone. It's completely different thing to put yourself on the line.
The moment you transfer some of your money from your bank account to the index fund or an exchange, everything changes.
By the way, it's not the first time my relative mentioned index funds. I think the first time was perhaps 2 or more years ago. Earlier than I got into Steem...
