How to spot the magic trick (in crypto and elsewhere, for non-experts).
Let’s face it — there are more sharks on the shore than there are in the water. And, it’s still an exception to find a person or a business that doesn’t have an underlying hidden agenda. This is especially true in politics and when it comes to money; and crypto is not an exception. While crypto and tech enthusiasts are busy building skyscrapers, magicians are quietly moving through the crowd doing their thing turning trading alt-coins into money.
So, how do you spot the magic trick? And, how can you innoculate yourself (and your wallet) from potential snake/shit/shark-housery? Do you remember kindergarten? Here are the most important stories (warnings) from the Brother’s Grimm about pretense that we’ve unfortunately phased out for Bob the Builder and Charlie and Lola.
The miller boasts that his daughter can spin straw into gold. The king promises to marry her if she can do it. She is trapped into the lie, a malicious imp offers to make it true in exchange for her firstborn child. Her only out, to guess his name before the child is born.
- Straw into gold? If you can’t see the value proposition and it isn’t clear how the company will be successful in the long run based on genuine value creation, then stay away. Where is the business adding substance to the world?
- But she married the king! If you are going to base a relationship on a lie, then it’s probably not a good idea in the long-run: We often seduce ourselves with the promise of the future, only to find out that the experience we got into was agonizing. What experience do you want to have when you invest into something?
- It all worked out fine in the end. The imp is set up to be the fall guy in this story, but the miller and the king, and the girl are all equally culpable. It’s only the girl that redeems herself by going through the pain of the ‘rare event’ –…