Creators & Builders
“Smart Money” has always been linked to three main sectors. The stock market, real estate, and business ownership. The shift that has been triggered will ultimately have a significant effect on these sectors going forward. It is my opinion that the acceleration and growth of Crypto will ultimately create a “Smarter Money”. Those who choose to build mechanisms that will ultimately capture value during this wealth transfer stand to experience significant growth. The creator economy alone is set to experience significant growth. When you consider that traditional financial “voices” are calling for a $13 trillion Metaverse market cap by 2030 you begin to see the growth factor at play.
Yesterday’s Wisdom Is Nor Necessarily Tomorrow’s Wisdom
This mode of thought is where I believe the once smart money begins to unhinge. Just because something still works does not necessarily make it significantly beneficial or profitable. I recently made a comparison between Warren Buffet and CZ to illustrate this point. Buffet is still wealthy but there are others that are outpacing him and fast! CZ has reached Buffet’s wealth bracket in a few short years, while Buffet has spent an entire lifetime amassing his wealth. Most men retire in their 60s and yet Buffet has had to dedicate his 90-year existence to generate his fortune.
Only The Well Connected Are Adjusting
In watching and speaking to a few wealthy individuals in my city I am able to see that they are viewing investments as “business as usual”. There is not even so much as a hedge. This is largely due to a dynamic I refer to as ” The Evil Twin”. Once someone has reached a level of success they somehow always seem to simultaneously develop a mindset of being unconquerable. Along with success comes the twin of arrogance. Unless this dynamic is noted and special attention is given to keeping it in check it will ultimately mature into destruction. It appears as if the well-connected are being given advice and are adjusting, while the “Smart Money” as a whole continues in prideful arrogance.
The Deception Of The Journey
In the boom of 2017 everyone was beginning to envision a new potential future. A few short months later and Crypto is a forgotten “failure to launch” story. These continuous boom and bust cycles that are part and parcel of a developing market manage to continuously deceive the majority into thinking “it was just a fad”. The typical “Smart Money” is also deceived and so will ultimately miss out. Even at this stage of the game, they are appropriating strategies that are decades old. In my opinion, anyone who continues in the traditional path of “wealth wisdom” will ultimately be watered down into a lower echelon.
Hyperinflation Is A Certainty
What the FED refers to as “aggressive” is nowhere near what is needed, or even possible. It’s a catch-22 with no remedy. Modest gains will become impotent if they aren’t already. Crypto has very high yields via DeFi and other strategic approaches. This is what is required to stay ahead of this tsunami of economic destruction. Factor in monetary expansion and inflation and I don’t see how traditional investing stands a chance, even at these early stages. Not everything is fixable and that is the harsh reality the world is about to learn. The average person thinks that “things can get better” but the idea is just hoping without any understanding of how economics and monetary policies operate.
The stock market is already pushed beyond reality, along with the real estate market. However, not in all countries. Many countries are experiencing a decline in property valuations. How much longer will printed money be pushed into these asset classes? With greater adoption of Crypto comes another wave of injection. Is it not better to pump money into an asset class that is in its infancy, or an asset class that is at breaking point? How long before the FED prints money in order to distribute into the Crypto market. There’s not much meat left on the bone of traditional asset classes. As Crypto grows, it will also cause traditional assets to shrink. Markets are relative. It’s a scenario of the most perfect ” compounding effect”.
This is how I see this playing out. Of course, this is something that will transpire over years and not months. We have however not addressed the companies and business models that will adopt and incorporate Crypto. This will ultimately also be a deciding factor as to who and what continues to prosper. We can revisit this prediction in the years to come. It will be rather interesting to see who and what is considered “Smart Money” on that day.