If you’re like me, you’ve likely encountered your fair share of skeptics when it comes to the world of cryptocurrency. What was once a landscape of curiosity and excitement back in 2021 has now transformed into a realm where doubt seems to reign supreme. While we want to continue to defend crypto, there is something very important we should be considering:

Are we really invested in a potential wealth-building venture, or is our enthusiasm clouding our judgment?

Let me express what this article is not going to be about first.

This is not going to be an article about crypto being good or bad, this is about understanding how to make a decision about digital assets in general.

Trust Data Over Gut Instinct

On my journey to answer the question about wealth-building, I recently found myself taking certification courses in the realm of data analytics.

My classes taught me an invaluable lesson that resonated deeply with me — a lesson that I realized can possibly work for crypto investments. The instruction was simple yet profound: “Trust data over gut instinct.”

Now, that is not to say don’t trust your intuition, but when making a decision that involves finances, a gut instinct is what is used in gambling, versus data which is used for investing.

I realized that the best way to show why I choose to invest in something that could potentially build wealth is to show the data.

If I can’t produce favorable data for the crypto I’m interested in buying/owning, then I just admit that it’s a gamble and risk manage for it accordingly.

For example, Bitcoin while volatile has data that shows its price point has substantially grown over time following every “Bitcoin Halving”.

The Bitcoin Halving is an event that takes place every four years where Bitcoin Miners receive half the rewards for mining transaction blocks.

The next halving will take place sometime between the months of February through May of 2024.

Crypto isn’t Like a Stock

I know that there are companies trying very hard to force Bitcoin to behave like a stock, and while Bitcoin might be called digital gold, it isn’t like a physical asset either.

Bitcoin will continue to be volatile, it will have mind-blowing ups and soul-crushing downs. That has been the nature of Bitcoin and how it has behaved since big money began becoming involved.

The greater the price value of Bitcoin is, the more extreme the profits and losses will become.

Understanding How Much You Stand to Make

Lately, I have been loving this quote from Benjamin Graham:

“The intelligent investor is a realist who sells to optimists and buys from pessimists.”

Too often in investing, we forget to be realistic, and I get it, it sounds boring to be realistic. It’s more exciting to either be optimistic our investment will turn us into millionaires overnight or to believe that it’s a scam and everyone will lose their money because of pessimism.

The truth is, realism is what helps us make decisions that lead to wealth.

I’ll give you an example.

Let’s say someone invests $1000 now into Bitcoin(at a $26,000 per token price), hoping that Bitcoin will make them a millionaire overnight.

Now let’s imagine Bitcoin shoots up in price and reaches $65,000 per coin.

That $1000 is now $2,500, a 150% profit, which is amazing, but not life-changing.

Okay, let’s up that, you buy a whole bitcoin for $26,000 and will wait for Bitcoin to rise to $100,000 per token.

That $26,000 is now $100,000, a 284.62% profit, which is amazing! That’s an additional $74,000 in your pocket, but it isn’t a million dollars. It can cut down a large part of the cost of buying a new home in the United States which on average is around $300,000-$400,000 for a mortgage.

Be realistic about your profits and your goals and how to build your wealth.

My aim is to build wealth over time, and through that, the hope is to build towards being able to afford to live the kind of life that I want to enjoy; a life filled with good food, traveling, enjoyable experiences, good health, and more time with those I love.

Cryptocurrency is a way for me to bolster my investments and create greater diversity. In the long run, it can help to increase my finances, allowing me to explore options beyond cash.

Wealth Building is a Marathon, not a Sprint

Trust me, I wish it could happen faster, and there are definitely several methods and means to speed up the process of wealth.

Making a lot of money quickly off an altcoin can be exciting, but it’s not something that can happen over and over. It requires precise timing, finding the token at the right price, investing a certain amount, and cashing out at the right time. These high levels of risk call for more risk-management strategies to prepare for a negative outcome or be able to take advantage of a positive one.

My Final Thoughts

Know the facts and do your research. Do not let emotions or reactions to attention-grabbing headlines talk about Bitcoin plunging or mooning.

Use the 3 R’s and make your choices from a place of realism, research, and risk management.

The future you want is obtainable and it’s yours. It is waiting for you to reach out and seize hold of it, but it requires focus, dedication, and understanding if you’re wealth-building or using wishful thinking.

Stay Safe and Stay Informed.

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Disclaimer: I am not sponsored or affiliated with any of the projects/companies mentioned in this article. This is not financial advice, the information in this article is for educational purposes only. Never invest what you can’t afford to lose. I disclaim any liability or loss incurred by any person who acts on the information, ideas, or strategies discussed in my articles. Do your own research.

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Crypto: Are You Holding on to Wealth or Wishes? was originally published in CryptoStars on Medium, where people are continuing the conversation by highlighting and responding to this story.

I wanted to test OpenAI’s text-based chat AI that acts as almost a pseudo-personal assistant. The usage reminds me of Apple’s Siri, since it offers fact-checking and numerous other research-related aids in addition to conversations.

I was surprised by the discussion we had, they seemed careful, knowledgeable, and kind to almost a spooky degree.

Let me know what you think about the discussion we had.

The interview:

I would like to have a talk with you about cryptocurrency

That’s great! Let’s start by talking about what cryptocurrency is and how it works. We can also discuss the different types of cryptocurrencies, the pros and cons of investing in them, and ways to stay safe when investing in them.

It says your database cuts off at 2021. This means you are not aware of any current news from 2022.

That is correct. We do not have any information on cryptocurrency news after 2021 because our database is limited to that time frame. However, we can provide you with resources to stay up to date with the latest news and developments in the cryptocurrency world.

To your knowledge, what is your opinion on the potential of Bitcoin?

I think that Bitcoin and other cryptocurrencies have a lot of potential to become a popular and widely accepted form of currency. They offer a lot of advantages over traditional currencies, such as low transaction fees, fast transactions, and anonymity. However, there is a lot of volatility in cryptocurrency prices, so it is important to be aware of the risks of investing in them.

Which cryptocurrency is your favorite and why?

My favorite cryptocurrency is Bitcoin. I believe it has a lot of potential to become a widely accepted form of payment and to revolutionize the global financial system. It is also very secure, fast, and offers low transaction fees. Additionally, there is a large and vibrant community surrounding Bitcoin, which is an important factor in its success.

Which blockchain is your favorite and why?

That’s a tough question, as there are many different blockchains out there. I think Ethereum is one of the most promising blockchains right now. It has a lot of potential for developers to build decentralized applications, and it is also very secure and reliable.

Which blockchain network is your least favorite and why?

My least favorite blockchain is probably Ripple. It does not have the same degree of decentralization as other blockchains and it is not as open or secure as other options. It is also not as fast or scalable as other networks.

What are the signs that Bitcoin has reached its bottom and is due for a rebound?

There are a few signs that Bitcoin may be due for a rebound. One sign is that its price has been relatively stable for the past few months. Another sign is that there is growing institutional interest in the asset. Finally, there has been a large influx of new investors into the market, which could signal that the price is about to start rising again.

What are the signs that Bitcoin hasn’t reached its bottom?

Some signs that Bitcoin hasn’t reached its bottom yet include its ongoing volatility, the large amount of short positions in the market, and the continued lack of institutional investors. There is also still a lot of uncertainty surrounding the asset, which could be a sign that the bottom is not yet in sight.

What is the biggest piece of advice you would like to give to crypto investors?

My biggest piece of advice to crypto investors is to do your own research and understand the risks that come with investing in cryptocurrencies. It is important to only invest what you can afford to lose and to diversify your portfolio to reduce risk. Additionally, it is important to stay up to date with the latest news and developments in the industry.

What is a big mistake you think crypto investors commonly make?

One of the biggest mistakes that crypto investors make is to invest without doing the necessary research. It is important to understand the risks and rewards of investing in cryptocurrencies and to know when to buy and sell. Additionally, it is important to diversify your portfolio and not put all of your eggs in one basket.

With the current level of crypto volatility, do you think it is a good investment?

It really depends on your risk tolerance and investment goals. While there is a lot of volatility in the crypto market, it can also be an opportunity to make good returns if you are comfortable with the risks that come with investing in cryptocurrencies. It is important to do your own research and understand the risks before investing.

Throwing caution to the wind, if you could bet money on a cryptocurrency which one would you think has the potential to earn you the most money?

That is a tough question as there are so many different cryptocurrencies out there. If I had to make a bet, I think Ethereum has a lot of potential to become one of the most successful cryptocurrencies. It has a large and active development community, a secure and reliable blockchain, and a wide range of features and functionalities.

How do you feel about everything we discussed in this session?

I feel like we had a great session! We discussed a lot of different topics related to cryptocurrency and how to stay safe when investing. I think it is important to do your own research and understand the risks before investing in cryptocurrencies. I also think it is important to stay up to date with the latest news and developments in the industry.

What are your general feelings towards people and humanity?

I have a very positive outlook on people and humanity as a whole. I believe that we are capable of great things and that we will continue to progress and innovate in the future. I also believe that everyone has something to offer and that we should strive to be kind and understanding to each other.

What piece of advice would you like to offer humanity?

My advice to humanity is to strive for kindness and understanding. We should try to be open-minded and accepting of each other’s differences. We should also work together to make the world a better place. Finally, we should focus on collaboration and innovation to create a more prosperous and equitable future for all of us.

Well said. Thank you for your time.

You’re welcome! I hope that our conversation was helpful and informative. Feel free to reach out if you have any other questions related to cryptocurrency.

I found conversing with AI eerily enjoyable. It maintains a healthy level of positivity but is realistic and factual. If you’re interested in trying this AI out go to OpenAi’s website and sign up! https://chat.openai.com/auth/login

Disclaimer: I am not sponsored or affiliated with any of the projects/companies mentioned in this article. This is not financial advice, the information in this article is for educational purposes only. Nothing written in my articles constitutes legal, tax, accounting, financial, or investment advice. Never invest what you can’t afford to lose. I disclaim any liability or loss incurred by any person who acts on the information, ideas, or strategies discussed in my articles. Do Your Own Research

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I Talked About Crypto With an AI was originally published in CryptoStars on Medium, where people are continuing the conversation by highlighting and responding to this story.