When you fully dependent on Crypto

15th June 2022, Wednesday

In a word, "relying entirely on cryptocurrency and sometimes becoming impoverished is the same thing."

A farmer's job is to grow crops on the land, with all his investment in field crops. Suppose I am a farmer, I have 5 hectares of land. With the money I have left after running all the expenses, my five hectares of land can be used very well for growing crops this year. Within the next two months of planting, irrigating, fertilizing and sowing seeds in the planned crop land, the crop grew. The crop will be harvested in two to three weeks but due to climate change the crop land was flooded in advance. The crops of the land were completely destroyed before anything was realized. Since my entire money has been spent on crop production and my second job from which I can earn money, my financial situation will be completely crushed. I will go bankrupt like Sri Lanka.

The same is true of cryptocurrencies. Cryptocurrency is a world where entering completely and entering the parallel universe of the "Strange Things" TV series is almost the same. The parallel universe there means danger and 99% chance of never coming back. There are many who work all year round, earn money through labor and invest in cryptocurrency in the hope of getting some extra profit on top of that money. But after a while, when he sees that his investment in DeFi means a "ponzi scheme" like Terra Luna's, he has no choice but to commit suicide if he can't control his emotions. In a word, the world of cryptocurrency is like a casino.

BCH.game's roulette game you may have played. There you have to select either black or red or green among the three options. In a moment when the draw will start, you don't know until then whether red, black or green will hit in the future. If you invest in black as bet, and pass black then you get double profit. But if for some reason the green or red passes, you will lose your money.

The same thing applies with cryptocurrencies, predicting the future. If you understand what the future market will look like then you win. And if you invest in an asset without realizing it, you will either win or you will lose. However, the probability of losing is 80%. Because of all the assets I've invested in so far, the price of crushing them has skyrocketed.

So there is no guarantee that any profit will come on top of my money, when different companies will adopt cryptocurrency, when Elon Musk will buy 100 billion worth of BTC, if we leave our purchased crypto assets, then we will see BTC / BTC. Or like Terra Luna will drop 80-99%.

If you compare the value of Bitcoin Cash with the last one year, it has dropped by almost 80% which is not far from 99% of Terra Luna.

The only difference is that the terra luna has dropped sharply by 99% while the value of other cryptocurrencies, including bitcoin cash, has been declining over time.