My last week has been extraordinarily busy, so I’ve got a straightforward and short post for this Monday. First, stay strong friends. These 20% downturns are unfortunately part and parcel of having money in crypto. Don’t get scared, hold strong, and buy the dip if you’ve got the funds.
This week’s post was inspired by this Mark Cuban tweet:
I was then listening to the Bankless thanksgiving roll up episode, and I forgot if it was Ryan or David who said this (heavily paraphrased):
“The cool thing about DeFi is that it’s the opposite of traditional finance. In traditional finance, the retail investor only gets access to the boring stuff while the institutions get the cool products. DeFi is the opposite, with institutions contained by regulations while we get access to all the cool stuff in DeFi.”
This is a theme I’ve seen as I learn more and more about the space. Crypto and DeFi give you the freedom to be stupid on your own dime. It’s the exact opposite of traditional finance. Traditional finance is wrapped up in rules and regulations designed to “protect” the traditional investor and institutions. Yet, when you consider some of the events of the last decade from the housing crash to the meme stock tampering, it feels like these regulations are just there to stop investors like you and me from making real money.
That’s why DeFi goes so far in the opposite direction. It’s much better that the industry gives the users complete freedom, and protest hard against the idea of regulations for protection. We’ve all seen this movie before. So before you get in there with big money, do you research. It’s all there for you; read the white papers, join the discord servers, and make sure that you’re confident in the opportunity before you start throwing money at it.