Cryptocurrency influencers and YouTube personalities can be entertaining, they can sometimes be informative, however rarely are their statements without bias. A bias they often don’t realise they have, but have it they most certainly do. You see, it is human nature for the mind to promote ideas that best suit themselves, we are all guilty of it at some level and so it is natural for a cryptocurrency influencer to be optimistic and cheerlead the assets they are invested in.
For a time we can expect a little bit of a cool down influencer activity on YouTube, but once the bottom is in, and confirmed and those pesky red candles become a thing of bad nightmares, they will return en-masse telling their subscribers what’s hot! and what’s not!. But in reality, most are referring too, what they are invested in, and what they are not, and for some (not all), they are referring to assets which they’ve been paid to promote either directly, or indirectly.
Now I should say, this doesn’t apply to all YouTubers and Influencers, but unfortunately the more honest personalities are often slightly naïve to the nature of trading in the wild west and the results for their viewers can often lead to the same outcome (zero in the bank).
We don’t pretend to be perfect here at the People Empowerment Project, but we do pride ourselves in honesty to our readers, and honesty to ourselves. While, as I’m sure you’ve probably noticed, I am highly sceptical by nature of anything that steps outside of my own full custody, there are times when something may step out of my risk comfort zone in exchange for potential high reward. Typically, I’d avoid this, however sometimes risks are worth taking when the potential reward is high enough – in these situations I will always emphasise caution to others and minimal investment (less than 1% of your reserves).
What I will also do is publicly share any new concerns I may have publicly with our subscribers and adjust any portfolios as required.
If you are wondering what brought this discussion to the table, it’s the recent issues at Celsius. Last week Celsius, a centralized finance platform (CeFi) made the following announcement:
We are writing with a very important message for our community.
Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honour, over time, its withdrawal obligations.
Celsius has millions of users and just as LUNA was, has been promoted by just about all the major influencers and YouTubers on the scene. The platform allows users to stake their crypto assets for high returns, as well as swap facilities and a pretty little wallet mobile app to boot.
Why would such a platform be promoted by supposed crypto experts? After all, it’s a centralized platform that takes custody of your assets in a relatively unregulated market.
The simple answer is because these people are typically not experts. For those that remember the Bitconnect debacle, they may remember just about all the major Crypto YouTube channels were pushing it. In most cases, greed takes over loyalty to their subscribers.
There are influencers out there who consider themselves Bitcoin maximalists, these have an entirely different bias – they hate everything except Bitcoin. Everything else is a shitcoin.
This mentality is less dangerous for their subscribers, but it is still a poor approach. Bitcoin is king, I’d agree, at least right now. But this simple fact does not mean everything else is a shitcoin. I don’t believe in a single currency world, I believe any group, community, society, organization or institution should be able to create their own economies. The power to create your own economic system with a few clicks is a breakthrough for society, it’s the great leveller, the revolution most are missing.
If we can understand one thing when it comes to trading or investing in crypto, it should be that tribalism in economies will not move us forward, simply because our tribalism is more often than not created out of how much we have invested, and how long we’ve HODL’d on to it.
I’ve been tribal and emotionally involved with cryptocurrencies in the past, it doesn’t end well.