Competent Investing

Regardless of social or economic status, as human beings we have the ability to invest our time, energy, and resources into a wide range of opportunities. Whether we invest in people, projects, or something else, there exists a responsibility and an importance in exercising reason and assessing our own competence beforehand. Using a bit of common sense, this should go without saying, though emotions can often cause people to overlook sound logic in many circumstances.

While this may seem obvious, people should address and assess competence when investing so that they can be prepared for various outcomes in light of uncertainty. Take cryptocurrency as an example. About a year ago, cryptocurrency news stories were finally flooding the mass media. Everyday people heard stories of investors who gloated a twenty fold (or more) return on their initial investment. Without understanding much of the history of cryptocurrency or its benefits and flaws, people started investing their life savings, mortgaging homes, and other unthinkable decisions based simply on their fear of missing out. Absolute mania.

In all honesty, a case could be made that these same people backed out on their investments when the market took a rough turn. In most instances, our investments fluctuate, growing sometimes and shrinking others. The difference between investing in stocks versus cryptocurrency, however, is that cryptocurrency investing is much more volatile. An increase or decrease of ten percent in a matter of hours is fairly common, whereas with stocks, it generally would take months, even years to see a price change that significant.

The reason I write about this topic today is not to influence anyone to invest or pull their investments from cryptocurrency. Rather, I simply hope to help people sincerely think about why they choose to invest or not invest. What do we value most in life? Do our investments align with these values? If not, it begs the question of whether or not we are acting as good stewards of our influence. On this Thanksgiving Day, we should consider what we’re truly grateful for. After we’ve done that, there’s only one thing left to do. Appreciate it.

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