Yesterday, I picked up a small rock lying on the road, and it is now sitting on my table. How much will you pay for it?
Probably nothing. But what if you believed that someone else would pay 20 rupees for that rock? Now, you might happily shell out 10 rupees.
So that once worthless piece of rock is now worth at least Rs 10.
But one might ask, why would you believe that someone would pay Rs 20 in the first place?
What if that guy believed that someone else might pay Rs 30 for it? And that 30 rupee guy believed that someone else might pay Rs 50?
Like in mathematical induction, stretch this idea to infinity, and that rock worth zero can be worth any price.
At this point, we might be talking about the rock or even bitcoin. I am not a cryptocurrency expert but it is not clear to me if the bitcoin craze is anything deeper than that.
When I hear that youngsters in early 20s are ‘investing’ in cryptocurrency, I wonder, what are they thinking? I understand that we all want to get rich quickly, but where will this road lead?
Call me an antiquated, old-fashioned dinosaur, but I don’t believe that there is any shortcut to wealth creation. Yes, in a gambling den, some people get lucky but on average, you lose money.
And surprisingly, the amount of time and effort it takes to find shortcuts – in the same time, you can achieve your goals the straightforward way. Then why do this drama?
I can’t change anyone’s mind but if I could, I would want us all to think long-term, think fundamentals, and do things the right way.
So, instead of doing all this circus, why not take the right path? I can assure you, it is SO much easier.