A colleague talked about her waning interest in crypto earlier on today, describing it as 'not for everyone'. This was in response to a question I asked about an investment she made some months ago which she has been unable to recoup her investment.
I was amused by the response, partly because while suffering heavy dips, she had yet to sell the crypto asset she bought, and more were still to come in the smart contract. Prices did not look encouraging though, and one can quickly see why that becomes an issue for an expectant investor.
It however highlighted some very important facts about a sizeable number of crypto investors, which is that many are simply in for the returns. For many people, crypto simply represents a medium to make quick or exponential returns and nothing more. There is very little consideration for the project and its usefulness to our current system.
There is nothing wrong with seeking returns on our investments, but with crypto there is a need to understand the fundamentals of why we invest before deciding on an investment. Anyone who invests in crypto with the aim of simply making profits doesn't understand what the market entails, and there are reasons why this is highly recommended.
Understanding Blockchain technology and its uses will help us select better projects, as well as give us the fortitude to pull through any major price dips. Of course the first is very important, as waiting on a project without long term potential will be futile.
Knowledge helps us to better understand why we are even here in the first place. Crypto as we know if would not exist today if Satoshi did not see a need for having a decentralized financial system. The knowledge gap between new investors and some of the more seasoned investors needs to be closed down to better put things in perspective for new investors.
Conclusion
The best way to not care about current valuations is to see the actual value of the project we invest in. This can be active like we see on Hive as a community, or even passive but with a solid development framework. It instills greater confidence in investors who are less likely to simply abandon the project on the grounds of waning interest due to sustained unprofitability.