Separating The Wheat From The Chaff
To understand the immeasurable, the mind must be extraordinarily quiet, still.” — Jiddu Krishnamurti
Prologue: A Bit Like Surfing
I vacationed in Puerto Rico this summer. There are many beaches in Puerto Rico — some calm and serene, others wild like a mustang. Rincon, in Puerto Rico, to me is a place filled with mustangs. To many surfers around the world, Rincon is paradise. Huge 30 feet waves dwarf most humans but provide the best options for surfers to find calm and excitement at the same time. It is quite contrarian to find both at the same time. However, it is actually not that difficult to understand. Surfing requires meditation to become one with the surfboard. It also provides excitement because the surfer tries to master a force of nature — the ocean. In addition, very few beaches, if any, in Rincon have lifeguards. One could argue that lifeguards may not offer much protection. However, the presence of one can at least be calming to most. To me, surfing in Rincon is a bit like investing in the brave new world of crypto tokens — it can offer both calm and excitement. The risk is immeasurable. Also, there is no insurance (when you place your money in a bank account, the FDIC insures your deposits) when you invest in cryptographic tokens.
To be honest, I don’t possess the mastery need to enjoy calm and excitement at the same time. This essay is meant to share some of my lessons learnt along my journey investing in crypto. Hopefully, it helps you separate the wheat from the chaff.
Events of Days Past
Two major events shook the crypto community and forced crypto enthusiasts and believers to do some introspection. Regulation, rightly, is on the horizon after millions of investors lost money in the Terra Luna collapse which resulted in a $40 billion crash.
Less than a month later, in a blog post published on June 13, 2022, crypto lender announced a freeze on depositor accounts i.e. depositors could no longer withdraw their assets. Barrons ran an article soon after titled ‘Crypto Winter Could Become Crypto Hell’. Celsius, which had around $11.8 billion in assets…