Passive Investing

Earning crypto is often referred to as a “passive income,” which implies monthly earnings of “x”, “cashing out” your earnings along the way. The crypto in your wallet represents stock in the software affiliated with that crypto, with a market cap similar to fiat stocks, simply alternate the words ‘coin’ and ‘stock’. By viewing your earnings by today's price, rather than $HNT, you’re failing to prospect what could otherwise be a long term investment.  A market downtrend, typically by around 20% or more of a recent high, is known as a "bear market". They exist in crypto and fiat markets, as do "bull markets", which is the opposite, a 20% gain.  The more these market exhales take place, the more volatile it is considered. As one can see in the graph below they are cyclic in nature, one following the other.


What are some industries that saw massive correction in their inaugural years? Namely, Amazon, which saw corrections of 30-50% yearly for their first 10 years while the market learned about what this entity was. Netflix and Uber, like Amazon, were accused of trying to provide “redundant” services.  Few knew the extent to which these industry giants would absolutely reshape the standard. BTC saw almost 20 corrections between 2012 and 2017 alone, averaging around -36% per deflationary period, while the world grew to understand blockchain and cryptocurrency. Later the world began to trust, and then to rely on these technologies.


The crypto world is still in its infancy, and is just starting to transition from the proof of work to actual applications, and while people are more cognizant of blockchain technology, their understanding is yet limited and mostly revolves around seeing it as a potential source of investing/passive income. While this has value, it is still not the aim of this platform. To make the analogy with Amazon, this would be like being in the initial phase where warehouses are set, web stores created, etc., not at the point of actual sales. We have yet to experience true growth.

Take a look at the stock price of Tesla for the first 3 years post the IPO. Alone, this segment represents a low yield investment. Petrol was cheap, huge gas guzzling engines were abundant and no one payed much attention to electric vehicles as they were seen as underpowered and unstable. Today, we are already at a point that they are the preferred vehicle investment for more people (cost efficient and clean), something one would not have expected 10 years ago. In the end there is a price on innovation, the short-term one payed by the inventors and visionaries, the long term one by the masses and non-believers.


Back in the early days of Amazon and Uber, they were seen as short term investment, risky and volatile, the same way one would look at crypto nowadays. However for those that worked in the industries knew the chance they stood to reshape things, their insider knowledge gave them unique perspective and allowed them to act.


Bear markets come and go, and timing trading to try to game investments is ultimately a very risky decision. Helium is building a private decentralized wireless network with your help, a network in its infancy with data usage increasing daily. If you believe in the network, then your ROI isn’t your earnings today. It’s taken the S&P 500 an average of 2 years to recover from every bull market since 1950. The next BTC halving is estimated to occur in 2024.

S&P 500 Historical Chart Data

Governments around the world are reckoning with what role they will play in the future of Web3. The US is threatening a restrictive stance of policy, with the SEC dancing with sweeping regulations that would label all cryptocurrencies as "unregistered securities." John Deaton is the founder of Crypto Law and has publicly condemned the SEC's overreach citing that Gary Gensler, chairman of the Securities and Exchange Commission, has "persisted in seeking to extend the agency's authority beyond what is permitted by law." (source: John Deaton on SEC Lawsuit)

Builders have built their way through many bear markets before, and emerged out of the other side with bright and exciting new technologies that propel extended periods of booming industry growth. There may be an extended period of market volatility ahead, that may prevent new investors from gaining interest, or may even shake weathered investors, or "diamond hands", into selling.  These shakeups always cause technological breakthroughs, like how the .com crash and boom in the 90's brought email, social media, and more. The duration of these bear markets, while uncertain to an extent, have a finite trajectory and inevitably end.



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RAK has been working alongside the teams at Helium and Nova since the beginning, committing dedicated service to the ecosystem through MNTD., and we are excited to continue building together into the future. Who knows what technologies will emerge when the next bull run really takes hold, but by learning as much as you can about the projects you're involved with, you can develop perspective and conviction that will allow you to make educated decisions about these investment risks on your own. If you'd like to learn any more, there are Discords dedicated solely to price speculation, investment, and tax advice. Be sure not to bring up these things in the main Helium discord, per user rules that prohibit such discussion!  

Time has proven to be a friend of markets, the average monthly capitalization of BTC over the last 10 years, which has been argued to be the leading impact on alt-coin speculative prices, comes in around +17%. So when making investment decisions, do diligent research of your own, consult professional legal and investment advice before making any large decisions, but most importantly: If in doubt, zoom out!


For example:


Always remember, 1HNT = 1HNT 🎈

Disclaimer: This is not investment advice. We understand the market is on edge right now, and are simply providing additional perspective during this crypto winter. Stay warm out there!


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