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