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Much enthusiasm for SMARTBCH, but… DYOR

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Avatar for Jnavedan
Written by   139
6 days ago

The journey is exciting

I've seen a lot of excitement in various articles about the launch of SmartBCH and some financial products peeking into the Bitcoin Cash community.

I'll be honest with you. I don't have a great deal of knowledge about decentralized finance flooding the cryptocurrency market scene.

Probably even I am still stuck in the traditional and dominant paradigms about economics and finance. It occurs to me that I need to do more research on the Austrian school and other schools of thought.

In addition, I sense that there will soon be other uses in the technological convergence around Blockchain beyond economics. For example, in the medical field.

While that moment arrives, common sense suggests doing a refresher on financial fundamentals and check it with the Austrian school.

Source: Image by Sergei Tokmakov Terms.Law from Pixabay 

Someone will say to me, "drop the theories and be more practical, follow the tutorials on emerging applications, so you don't miss out on winning opportunities."

I understand the point, and in fact, I already created in my MetaMask wallet an address on the SmartBCH second layer chain with Ethereum virtual machine technology. Moreover, I also joined some groups on Telegram to find out about the first steps.

However, I admit that they are very eye-catching returns offered in exchange for liquidity in Smart Contracts. But my rationality forces me to investigate first before getting into the game.

When I see very high rates of return alarm bells go off in my brain. I did record my first foray into Bitcoin in May 2017 and how I lost in a Ponzi scheme. The worst part is that it was evident, but confidence and greed acted against me.

So now prudence strikes my mind when calls for greed appear before me.

Sure, I understand that Smart Contracts play pivotal roles; And the ability to audit them being open source. Although, I wonder, do you have the technical knowledge in programming and finance to do it?

You understand now why I feel the need to refresh and update my financial knowledge in the Blockchain era. I think you should do the same unless you only want to have some fun playing the investor.

Another aspect is gamification like NFT that is incorporated into some DEFI products. The combination of gaming and money is explosive and addictive.

Source: Image by A M Hasan Nasim from Pixabay 

Last July, while shopping for a new wireless router for our home, I asked the salesperson if he accepted BCH. I was pleased to hear that he did. In the brief conversation about the crypto world, the salesman asked me if I played Axie Infinity. I was caught off guard, though not that much. The day before, I had ogled a bit about The Sphere on Bitcoin Cash. So I tersely replied with what little I understood about this one.

The merchant was very enthusiastic about Axie Infinity. I remember him saying that his initial investment was $1,200 and that he was making about $30 a day. At first instance, I thought, too much risk for the return.

I completely forgot about it until I heard today that the current token value is around $84 when last July it was worth only $4. That is, in less than three months, it increased 21X. So the young merchant increased his invested capital from $1,200 to $25,200. Not counting daily profits, which sure if he is consistent, must have increased as well.

With this in mind, I think it is wise to, at least, do some serious research into the possibilities that on the SmartBCH sidechain, gems with similar possibilities also appear. My gut feeling is yes.

However, remember, it is not good to get carried away by greed. Do thorough research not just on how you participate in the product in which to place the investment. Dig into the fundamentals of these; But for that, you will need to handle the basic technical and financial concepts.

For my part, I have already dusted off a book on finance that I bought in 1999 written by Zvi Bodie and Robert C. Merton, Nobel Prize winner in economics in 1997. I have also downloaded some podcasts on the postulates of the Austrian school.

In addition, I will access the smart contract code of the products I am interested in on GitHub. I think I have a lot of work ahead of me before I get into the game with high stakes.

The future in this field is mind-boggling.

An original article by @Jnavedan

Cover image by Pete Linforth from Pixabay

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Comments

As quickly as $4 became $25 for Axie, it can go back to lower than what it was. It is what it is, but I only see Axies being something similar to ponzi economy. As long as more and more entering with the hope of having a standard income, they will receive it, but when the money coming in will be way lower, then the exits begin, and it will all come crashing down.

$ 0.00
6 days ago

As quickly as $4 became $25 for Axie, it can go back to lower than what it was. It is what it is, but I only see Axies being something similar to ponzi economy. As long as more and more entering with the hope of having a standard income, they will receive it, but when the money coming in will be way lower, then the exits begin, and it will all come crashing down.

Hello, my friend,

If I learned something the hard way here in the crypto world, it is that there are a lot of smart individuals trying to divest you of your assets. So doing DYOR homework is very important, and not to regret in the future.

Thanks for stopping by.

$ 0.00
6 days ago

Luck plays a big role in these things. If you buy a token that becomes more popular in the future and many people buy it after you, you are lucky and can make a lot of profit. If you buy a token that nobody wants in the future, you have lost your money. If a token is tied to a game, it is the same. If the game is successful, the price of the token rises; if hardly anyone plays the game, the price falls. But it is hardly predictable.

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6 days ago

Hi, my friend,

You are very right. It is very difficult to predict which will be the next winning coin or token in people's preference. If it were easy, there would be no poverty. Well, maybe this statement is not adequate.

If anything, the learning journey is rewarding beyond the games themselves. In particular, I have long passed the time of my love for video games, and gambling never captured my attention. Although this on the Blockchain and DEFI sounds interesting.

Thanks for your generosity.

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6 days ago