My struggle between growth stocks and dividend stocks …

.. mirrors the struggle between crypto-investing 1.0 and crypto-investing 2.0, but with some important difference.

My legacy investing struggle

I once struggled between investing in the most promising growth stocks versus investing in more reliable dividend paying stocks.

• Growth stocks provided no dividend, but the potential for great price appreciation.

• Dividend stocks provided regular income, but less rapid price appreciation.

My cryptocurrency investing struggle

I still struggle between the most promising growth cryptocurrencies and income producing cryptocurrencies.

• Growth cryptocurrencies have the potential to increase in value 10-100x in a year.

• Income producing cryptocurrencies provide regular income, but usually much slower and lower price appreciation.

My cryptocurrency struggle represents more then the simple binary dichotomy, it also is a struggle in my heart and my mind

• A struggle between the legacy economy scarcity mindset and ..
• The cryptocurrency economy abundance mindset.

Let me explain ..

When investors come to cryptocurrency to invest, they bring the same mindset they had in the legacy investing world of stocks and bonds, buy low sell high.

Downside

As I see this and I say this non-critically, but observationally, this is a Ponzi-like scheme mentality, where you bought something hoping to sell it to someone else at a higher price. And because the prices of new growth stocks are volatile, thus meant there were always winners who bought early and losers who bought last.

Bagholders

If you transfer this mentality and both it’s goals and harsh realities you have crypto millionaires who bought low early, and sold high to people who bought last and lose the majority of their investment on the dump side of the pump. They are called Bag Holders.

The evolution

The simple terms evolution I see unfolding in crypto as people move away from investing in tokens which might appreciate greatly towards tokens in liquidity pools which pay daily.

The old style of investing in crypto

I know many people still buy 100 different crypto tokens in the hope that they will get lucky and one of that hundred will greatly increase in price or moon. I think this is a lottery ticket type mentality of hoping to strike it big and get lucky. And it is dependent on a ponzi like dynamic where there are always a few big winners and many small losers.

The new style crypto investor

I think the new mentality is to buy crypto that makes money now, pays income now, and also offers the promise of price appreciation, but the tokens future value is then. I longer dependent on inflated speculative value, instead it’s price appreciation is based on it being a productive asset, as defineded as an asset which makes money.

The old strategy makes you powerless

Depending on crypto token appreciation to make income is not a bad strategy, but an old strategy which takes the power from your hands to improve your financial condition and gives it to market forces.

The new strategy makes you powerful

The new strategy makes you choose sound investments which make money daily, and your ability to make income is under your control as you choose lower return, safer projects, or higher return potentially risky projects.

Steem, Hive, Author rewards, curation rewards, staking rewards and now DeFi are revolutionary.

I know that after I came to Steemit/Hive I started thinking differently. I put my money into Steem every pay day and my heart and mind into it everyday. I felt like it put the power to make money into my hands, and I was making money every day.

It was empowering, it was financially lucrative and I could see how my income would increase the more I invested.

Knowlege

Abundance versus scarcity..

In my next article I will explain how your understanding and embrace meant of the opportunity here is connected to your ability to understand and embrace the abundance economy and discard the scarcity economy. Cryptocurrency tokens inflation creates good inflation and wealth.

The end.. for now..@shortsegments

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