(Newb alert!) This will be my first post of a series of many where I will be sharing my thoughts on how I see the crypto world, I hope you'll find something useful in here, as I am no expert, if you're looking for highly technical read or analysis of the crypto market, this is not the article for you. Aand excuse me for my English, not my first language :)
First off, these are my 3, over simplified goals when approaching the crypto world:
- Support a developing technology with huge potential
- Potentially profit
- Learn more about myself and how I take decisions, learning from my mistakes and becoming a better, more wise person.
Let's begin - The Idea and the Dream
We all know that it all began with Satoshi Nakamoto and the creation of Bitcoin. For me, it's not that much about the technology behind it (blockchain and cryptography) but about the ideology - completely changing the monetary system by removing the middleman which in most cases are the banks. In theory that sounds awesome and especially after the financial crisis of 2008, everyone dislikes the banks and what they represent - the rich 1% of people who despite being overly rich continue to abuse their power.
For me, that is one of the main reasons Bitcoin and the cryptocurrency side of blockchain has grown so much since 2009. It is the only real alternative to the current money system which we all know is broken.
Having all that in mind, I am happy to support bitcoin and other block chain technologies, hoping that they will grow up to be the pillars of a new, better system with decreased corruption, scams and misinformation.
There are of course many details, questions and problems that need to be addressed, such as:
- Can projects like Ethereum really create a new, better, more secure, cheaper Internet (or an accumulation of Internets) and smart contracts which will change multiple industries leading to huge shifts in power?
- Can Bitcoin become the digital currency with unbreakable security, low transaction fees and decentralized governance which ensures it's long-term success, or will it simply be the 'first' digital currency which made way to a better one?
- Can a government or organisation interfere with the crypto world in such a way that it becomes yet another stock or asset market for big investors to play in, full of trading bots where the ideology is long forgotten and human greed takes over?
Here is a video of Francis Hunt who asks similar questions, it makes you think, doesn't it?
The biggest enemy of all - your emotions
I made my first investment a few months ago and I remember how hyped I got after every youtube video I watched and every article I read. Hearing stuff like - '1000x potential from an ICO', 'in collaboration with Microsoft', 'Vitalik Buterin said...' all of that hyped me and it was really hard to hold myself down and simply continue researching.
There is an endless sea of crypto news, reviews and opinions, you don't have to read all of them to stay up to date. I have made a 'No Bullshit Filter' when skimming through reddit, slack chats, cointelegraph or youtube videos. 'How?' you might ask, here is a list of things that instanly make me pass on a piece of information:
- Asking generic, rhetoric or plain stupid questions such as "Is this the end of Crypto?" "Bitcoin to 1 million in a year???" etc.
- Using pictures and thumbnails with bulks of dollars, bitcoin coins, faces with fake expressions of amazement or dread etc.
- Talking about a topic with no provision of sources, no facts, only personal opinion such as "I believe" "I am sure" "some say" "an unknown, trusted source claims" etc.
I am trying to think long term, imagining a project in 5 years and whether it's idea is needed to fix a real life problem (like Bitcoin providing an option for those who don't trust the banks)
So how should I research and decide where to put my money at?
It is very important to write down your thoughts on why you plan to invest in a certain project. Make your own, custom sheet of all the questions and factors that will decide whether a project is worth it. Then, when you read about a coin, write down all the important facts, opinions and questions in your sheet. Let it settle for a few days then research again and see if you have a different perspective this time, whether your opinion of a project changed and why did that happen, are you acting emotionally, are you biased? Think think think!
Videos like this one from Tommy World Power ( 
Here is another great video of Cedric Dahl talking about market, capital and developer network effects and the importance of innovation gap for the success of an ICO. It is hard to see things from afar and Cedric's video gives some good points on how to approach different projects without getting emotionally attached