We all have heard the saying that in order for you to win someone has to lose.
In the Crypto world where many of pump and dump CryptoAssets exists, it could is widely believed that your profits from a CryptoAssets come you buying a coin or token and selling to someone else for a higher price. Making you the winner and the buyer of the coin or token loser, however that only holds true for pump and dump coins or tokens.
The hyped up coins with zero utility and use cases that solely depend on the momentum of the hype it is generating and when it goes to its saturation point, then yes you profit from selling to people FOMOing into it and losing their money when everyone is selling and the price start dropping.
However that is not the case of real CryptoAssets with real utility and use cases with good tokenomics.
Now before we look at Crypto lets look at traditional investment assets first.
Would you say that it is a Win-Lose situation when it comes to Shares and Stocks? or how about Gold, would you say if you are selling your Gold the buyer is losing? or how about Real Estate?
Most likely you have already seen my point here, but indulge me a little.
First the shares:
Say you brought Tesla shares a year ago and even if you missed the All Time High price and sold at a decent price making you some handsome profits. Now the one who has purchased those shares holds the shares as he believes in the company's vision of environmentally friendly electric cars and either profits from the dividends or selling at even higher price as the company innovates further and grows.
Now does that makes you the loser here, after all you sold your shares at lesser price then the other guy. Well no, because you have had your profit and sold at the time that is right for you, either to invest on something else which may give even better gains or to take profits or just to pay your bills.
Now the Gold:
If you had some Gold you purchased 10 years ago and now have to sell it for any reason, would you call the purchaser of your Gold a loser or yourself for selling your Gold that could grow even more a few years down the road.
What about Real Estate:
Either your house that you live in or second property or some commercial property, while not highly liquidatable , is always held as a solid investment.
Why is that?
Well for starters it has a limited supply: meaning there is generally a limit to how much of it can be flown in the market.
Shares are issued by the approval of the regulatory authority and dilute the percentage of the promoters' interest.
Gold can only be mined as much is present on Earth
Real Estate limited to the suitable and habitable part of the Earth's surface
Second thing is they have a utility and use cases and that in itself the most import thing for any use case. What value does it bring to the society and the world at large, how is it used by the people at large, why is there a requirement for it and most importantly utility is provides to meet a certain need.
Crypto like any other investment works on the basis of the principals of the investment, it is only when we look at it from a narrow prospective that we fall for the fallacies such as the Win-Lose mindset.
Crypto such as Ethereum or Cardano or Polkadot are providing a utility of smart contract platform.
Nano is trying to solve the problem of fees and speed
Bitcoin is used as the base for most trading pairs on any exchange.
Therefore, holds true as discussed above.
Unlike some other Crypto say the like that of Shiba Inu or Dogecoin that are hyped based do rely on you dumping them on someone else before it falls down to the ground.
As long as their is a need for a CryptoAsset that just isn't quickly selling at a higher price then you should be alright.
Still believe that in order for you to Win at Crypto then some has to Lose, then probably stay away from that coin or token, as that pump and dump Crypto could be dumped on you with you being the loser and go for some other good Crypto with solid development and utility.
Note: the examples used in this article are for illustrative purpose only and not an investment advise.
