The other night I made a large (for me) financial move further into the world of Splinterlands by purchasing far more vouchers than I had expected I would and buying packs. I did this for a couple reasons. Firstly, there was the FOMO of having some cards that I own and control, which I like the idea of. Secondly is, that from a personal financial position, I am not looking to sell at the top of the bull, I am trying to build an investment portfolio that allows me not to have to sell in the bear. I think (as do others) that Splinterlands is one project that if played well, could provide "bear protection" in the future, by providing some ongoing income on the assets, much like a DeFi project might.
What I notice in many though, is there is still a massive focus on the price of tokens, which indicates to me that people are looking to buy low and sell high, which is great investment advice, but doesn't necessarily provide what people need. What I mean is that for example, if I invest low, and sell high, that amount would have to be enough to make it through the following bear market too and this creates a situation that at the lows, what do I have to buy the next investment opportunity round with?
However, if I am able to invest into a foundation that provides a stream of income, even if that income diminishes into the bear, I still hold tokens and, when those lows inevitably come, I still have something with which to buy in with, even if it isn't that much. "Not that much" is relative in crypto though, as the returns on possibility are far more volatile and therefore greater than the traditional markets. So, being able to "limp in" at the lows, can make the returns at the following highs that arrive a couple years down the track, much much higher.
For me personally, the reason that I have been able to build somewhat of a stack is that all the way through the bear, I held. I held at the previous top, I held at the bottom, I am still holding. Yes, this round I may look to take something at the top, but the majority of what I hold is going to be put into areas where it is able to provide a return that at the bear, is enough that I can keep using it to build and if "real life" employment circumstances change, will help my family make it through, without having to sell the capital. That is the goal at least.
A lot of people of course have this goal, but I still think many are looking at a situation where they sell the top and live comfortably, but for most to do that, they would have had to buy the bottom and ladder in enough to make it significant. And then as said, if having to use those gains to make it through the bear markets, they will find themselves in pretty much the same position at the bottom hoping that the next run up will return their finances to former glory. This may work for some, but as the industry builds, a lot of the volatility will start to wash away on the large tokens and projects and, there will be far more options to invest into. This means that unless holding significant capital to spread, it is going to be hard to pick a massive gainer, just like it is in the stock markets today.
Getting a low-ish percentage on a very large amount might be enough, but if the starting seed is small, large gains are required. It is because of this that I am becoming (even more) aware of how important building that base is, because while the crypto markets ay to day are uncertain, the uncertainty in the future traditional economy is growing by the day. Why would anyone want to move into fiat now unless they must?
As I was saying to someone at work today, I don't want to sell, I want to hold and earn. They were surprised, because they didn't even realize that was possible, let alone at the percentage rates available. By participating as a builder and owner now, means being able to value capture as the industry builds and moves from the obscure into the mainstream. While for many, the initial capital input was relatively small, it was burdened with a large amount of risk, which is what gets rewarded. None of this is unfamiliar in an economy, it is how all industries build. What is different this time is, we all have a chance to be an owner early in order to capture future value.
However, even at relatively high rates, I am not going to be able to quit either of my jobs anytime soon, which is okay by me, as it means that I am able to keep building the foundation, even through the next bear markets. Who knows though, perhaps after surviving that run, the following bull will be where my capital and the industry align to provide the "enough" where I am free to make all kinds of decisions on what is currently narrowly limited.
I do not know if Splinterlands will be the investment that takes me through the bear market, but I feel quite comfortable having it a large part of my "return" portfolio, which is something that can provide an income stream without needing to sell it. Hive is another. which is why I am planning on keeping significant holdings of HIVE too.
While everyone is looking for an exit strategy, what I am trying to do is to build more within. To make a home in crypto, not live as a visiting tourist waiting for the next available flight out. I don't know how successful I'll be at this, but investments in, fingers crossed and what will come will be.
Taraz
[ Gen1: Hive ]
