INVESTING or GAMBLING

00:01 hey everyone let's talk about the 00:02 difference between investing and 00:05 gambling there's a big difference so 00:07 this happens quite a bit uh meaning you 00:09 know every week or two somebody will 00:11 reach out to me and they really want to 00:14 have a dialogue about some crypto token 00:18 or whatever that they are invested in 00:20 that they are convinced is going to go 00:22 up faster than Bitcoin now the first 00:24 question is why are they reaching out to 00:25 me they know I'm only in favor of 00:27 Bitcoin they they know that I think 00:28 everything else in crypto most most of 00:30 it is trash or a scam or a rug pull and 00:33 the stuff that isn't is a raw venture 00:36 capital investment with huge risk that 00:38 is not investment worthy in my opinion 00:40 for the vast majority of people but for 00:41 some reason people reach out to me and 00:43 the two most common tokens they want to 00:45 talk about are salana and xrp uh in both 00:49 cases I think they're attracted to those 00:51 tokens because they they're hard to 00:53 understand and when things are hard to 00:55 understand people feel like maybe they 00:57 have an edge on everybody else now the 00:59 problem is the people that reach out to 01:00 about these tokens don't understand them 01:02 either so it becomes very clear when I'm 01:05 chatting with them it's typically via 01:07 text message or Facebook Messenger or 01:10 now and then it's on WhatsApp or signal 01:13 um but anyway the conversation usually 01:15 starts with them saying hey you know I 01:18 think xrp or salana or whatever it is is 01:21 going to go up faster than Bitcoin what 01:22 do you think well I send them my videos 01:24 about and my Facebook posts about salana 01:27 or xrp or whatever it is they're they're 01:28 talking about and they're like yeah but 01:30 but and then we go on and on and on I 01:33 mean like endlessly sometimes for hours 01:35 about them trying to convince me that 01:38 their investment decision is a good one 01:40 first of all why are they trying to 01:42 convince me I mean like I don't 01:44 understand like it it's like it's like 01:46 they're looking for 01:48 validation and somehow talking to me 01:50 gives them validation even though 01:53 everything I'm saying is that what they 01:55 are doing is gambling it's a bad 01:56 decision they're going to lose money it 01:58 doesn't make any sense etc etc etc so I 02:02 want to I want you to understand how 02:04 these conversations typically go because 02:07 you'll understand the difference between 02:08 investing and gambling okay so what is 02:10 investing investing is understanding the 02:13 underlying value of something and then 02:16 putting your money in that and then 02:17 waiting typically at a medium amount of 02:20 time or usually a very long time for 02:22 your assessment to be proven right so an 02:25 example of this is investing in an the 02:27 S&P 500 which is the 500 largest us uh 02:31 us-based publicly traded companies which 02:33 is like the gold standard of the stock 02:35 market so if you just invest in an S&P 02:37 500 Index Fund and you just sit there 02:39 you're basically betting on American 02:41 companies that's what you're doing 02:42 you're saying hey I believe in America I 02:44 believe in companies uh as a you know 02:47 companies as a way of generating profits 02:49 and making the lives of people better 02:51 and I think the top 500 companies in 02:53 America are probably going up that is a 02:55 great investment thesis and other than 02:58 Bitcoin and possibly a few other things 03:00 that's probably the best thing you can 03:01 invest in now I don't think it's the 03:04 best thing to invest in because I think 03:05 Bitcoin is way better but if you took 03:07 away Bitcoin and you took away Tesla and 03:09 you took away a few other things I'd 03:11 probably be stuck just having my money 03:13 on the S&P 500 I wouldn't like it but 03:16 it's you know better than most other 03:17 options but at least you have a coherent 03:19 investment thesis which is you believe 03:21 in America and you believe in companies 03:24 okay that's you know that's not a super 03:26 uh you know that's not a super uh risky 03:29 you know assessment um so that's 03:32 investing investing is finding something 03:34 that has value understanding why it has 03:36 value and then buying it and holding it 03:38 for long enough that the price is higher 03:40 than what you paid for it ideally a lot 03:42 higher which typically means you have to 03:43 wait a lot longer okay so what is 03:45 gambling gambling is finding trying to 03:48 find something that will go up before 03:51 you get out so for example gambling at a 03:53 casino everybody who sits down at a slot 03:56 machine or a blackjack table they know 03:58 in the long term that that table is or 04:01 that slot machine is a loser over a long 04:04 enough time period people will lose in a 04:07 casino you cannot consistently be a 04:09 winner in a casino it's just not 04:11 mathematically possible over the long 04:13 term they know that but they think 04:15 they're going to get lucky and they 04:16 think they're going to get out uh before 04:18 you know before they lose money and so 04:21 people are constantly trying to do this 04:22 with salana or xrp and they're like but 04:25 Joel it's going to go up faster I'm like 04:27 why do you believe that well because 04:30 anytime bitcoin's going up it often goes 04:32 up faster I'm like okay um that may be 04:36 the case but so you know the trash 04:38 always floats before the tide When the 04:40 tide comes in the trash floats before 04:42 the boats right because it takes more 04:44 water to to you know to raise the boats 04:45 so why don't you invest entirely in 04:47 trash like why would you make any effort 04:49 to invest in good things when you can 04:51 always invest in the trash that uh you 04:53 know that uh that floats first well 04:55 they're like yeah but it's not trash and 04:56 then they try to articulate why it's not 04:58 trash which generally just communic to 05:00 me that they have no idea what they're 05:01 talking about or how salana or xrp Works 05:05 um and then they're just convinced it's 05:06 going to go up faster and I'm like what 05:09 what is the problem here like why are 05:10 you talking to me it doesn't make any 05:12 sense for you to try to convince me 05:15 unless you understand more about salana 05:17 or xrp than I do and so far I haven't 05:19 found anybody that understands more 05:21 about either of those than I do and I 05:23 think they're both a bad investment um 05:26 xrp because I think it's mostly hype and 05:28 a scam and salana because I think it's 05:30 highly likely that it just gets outc 05:32 competed by something else and if xrp is 05:35 real I think it will also be comp 05:37 outcompeted by something else um so 05:39 anyway so if you're if you have your 05:41 money on something because you think 05:43 it's going to go up fast but you don't 05:45 know why and or you know it's going to 05:49 go to zero but you're hoping to get out 05:50 before it does that is gambling and I do 05:54 not recommend gambling gambling is a 05:56 great way to lose money that is not what 05:58 I do I am never gambling I don't ever 06:00 gamble um I've never gambled in my life 06:03 other than maybe you know a poke poker 06:05 game with f with you know church friends 06:07 for 20 bucks or something like that for 06:09 fun I don't gamble like gambling is 06:11 stupid it's how you lose money which 06:13 means not only do I not gamble in the 06:15 rest of life I'm not going to gamble by 06:17 sticking my money in something so here's 06:19 here's a response that typically they 06:22 don't have a or a question they don't 06:23 have a response for I'm like look if the 06:25 goal is to invest in something going out 06:27 fast why are they not in fcoin spelled f 06:30 a r t c o i n it's an actual real crypto 06:34 it's called fcoin and it went up like 06:37 1,500% in like a week or two sometime in 06:40 the last month it was like one of the 06:41 best performing cryptos was fcoin fcoin 06:44 is stupid everybody knows it's stupid 06:47 100% of the reason people are investing 06:49 in it is because they think it will go 06:51 up and then they will get out before 06:52 everybody you know before everybody 06:54 realizes how stupid it is I'm like if 06:57 your goal is to is for something to go 06:59 up 07:01 why why not fart coin like why are you 07:03 trying to convince me that salana or xrp 07:05 or any of these other crazy cryptos I 07:09 won't mention all of them there's always 07:10 there's like it's like 12 different ones 07:12 that people get wound around the axle on 07:14 I'm like why are you trying to convince 07:16 me that this one is a good one um when 07:19 when a they don't understand it and if 07:22 the goal is to gamble they're not even 07:24 gambling on the most gambl thing like 07:26 this just doesn't make sense you're like 07:28 you know you're betting on something 07:29 where most of the upsides already 07:31 gone but you don't you don't want to 07:33 gamble on something that's really a 07:35 gamble you want to pretend you're 07:36 investing when you're really gambling so 07:39 uh I'll do a separate uh a separate 07:42 video on some of the sort of nuances of 07:45 that uh because otherwise this one will 07:46 get too long but um there's a difference 07:49 between investing and gambling if you 07:51 understand what you're doing why you're 07:53 doing it and you're in it for the long 07:54 haul and the short-term price you know 07:56 doesn't matter because all you care 07:58 about is the long-term value which will 07:60 eventually be reflected in the price 08:02 that is investing if you are invested in 08:05 something because you think it will go 08:06 up faster than Bitcoin but you're not 08:08 sure why and you think you're going to 08:10 get out before it goes down that is 08:12 gambling I don't do that and I cannot 08:14 help you do it because I don't gamble so 08:17 uh but anyway I'll do a a separate video 08:19 on why people get so wrapped around the 08:22 axle on these things and why I think it 08:24 makes no sense but that's all for this 08:26 one have a great day