My partner lost $800 a few days ago due to a meme coin she purchased. Apparently, she purchased the coin at a market cap of $40 million, and the coin has since grown to $160 million.
That was X4, and at that marketcap she was sitting at 3000$ and over 2200$ in profit. However, she didn't take profit when others were doing so, and just like most meme coin we know, it was rugged and she lost all her money.
I decided to put myself in her situation.
If it had been me, would I have even considered purchasing a meme coin, let alone profiting from it? Definitely not. So, how was she different from me? Is it possible that she was simply greedy or unsure what to do with the profits?
I was not sure what it was, but if I were her, with her financial situation, better economy, and better life than me, I would probably have done the same thing. Would this mean that my state of lack will warrant me to take profit if my money had at least x2'ed? What will prevent me from making the same mistake she did, and then it hit me: eureka!
I recall my first bull run in 2017.
2017
I was in a terrible state of deprivation and lack, and as a result, I was constantly taking profits and converting them to fiat currency. Or, even though I did not have much, I made sure to convert at least 90% of everything I had in crypto to fiat.
I did not do this because I knew how the market worked, or because someone told me otherwise; I did it because I needed all of the money to survive.
The difference is that I didn't have enough knowledge about crypto, but the state of lack which I was was what actually prompted me to take action. I realized my financial situation, and while I could have saved my coins for the 2021 bull run, I didn't, and by December 2017 and January 2018, I had already taken all of my profits.
2021
In 2021, however, things were different. I was not as needy as I was in 2017, which meant that my financial situation had improved and was no longer as bad as it had been in 2017.
Aside from the fact that I had no knowledge of how the market worked, I did not make any profits and made numerous poor financial decisions. Sometimes the majority of the factors that influence our financial decisions are motivated by necessity rather than knowledge.
Too early, until too late
People do not realize they need money until they actually do. When people are not in immediate need, they do not see the need to save money or save for rainy days, and they have not previously experienced a lack.
Most of the time in life, I realize that the difference between winners and losers is determined by who wants something the most.
Sometimes people lose money but do not realize it because they have enough money to cover their basic needs. I believe that when people lose money, whether due to sheer stupidity or greed, they should reconsider their previous actions.
Mental commitment
Make a mental commitment that they will not do such again, and cultivate a disciplinary mindset around this decision.
When people fail to hold themselves accountable for illogical losses, they risk making even worse decisions. Having enough money to get by can cause people to lose their sense of responsibility. When you are not accountable, you are unaware of when you are making mistakes in life.
Before I spent money, I do mental calculations.
For me, losing money only once is enough to make me sit up. This is because I can not stand losing more than once due to the financial consequences. My point is that you need to be in a better financial position to afford many losses in your life.
However, do not be deceived; constant financial losses can cause even the wealthiest of people to go broke. Sometimes it is best not to defend your financial foolishness because doing so will make it easier to repeat it.
This is why I believe people should not spare themselves the judgmentalism that comes with self-blame; when you make a mistake, you must blame yourself to the core because this is the only way to truly make amends.
My partner dislikes doing this, most likely because she believes she is always correct, and I do not blame her. Not needing money and not having access to it will not lead to core financial responsibility and accountability.
Conclusion
At the end of the day, having constant "money needs" is not always a bad thing; it helps you develop the mindset of profit-taking. Everyone needs profit in their life. If you continue to ignore profit, whether out of greed or a lack of accountability, you will face severe financial consequences.
Interested in some more of my posts
Why Is the grind getting harder?
Monopoly Is the Death of Civilization
Survival: Choas and Scarcity
Crypto: Gut & meaningful Connections
What is the primary barrier to entry in Web3?
What Are Some Things You Should not Do During A Bull Market Year?
