More on Web3 & Crypto
Max Parasol
3 years ago
What the hell is Web3 anyway?
"Web 3.0" is a trendy buzzword with a vague definition. Everyone agrees it has to do with a blockchain-based internet evolution, but what is it?
Yet, the meaning and prospects for Web3 have become hot topics in crypto communities. Big corporations use the term to gain a foothold in the space while avoiding the negative connotations of “crypto.”
But it can't be evaluated without a definition.
Among those criticizing Web3's vagueness is Cobie:
“Despite the dominie's deluge of undistinguished think pieces, nobody really agrees on what Web3 is. Web3 is a scam, the future, tokenizing the world, VC exit liquidity, or just another name for crypto, depending on your tribe.
“Even the crypto community is split on whether Bitcoin is Web3,” he adds.
The phrase was coined by an early crypto thinker, and the community has had years to figure out what it means. Many ideologies and commercial realities have driven reverse engineering.
Web3 is becoming clearer as a concept. It contains ideas. It was probably coined by Ethereum co-founder Gavin Wood in 2014. His definition of Web3 included “trustless transactions” as part of its tech stack. Wood founded the Web3 Foundation and the Polkadot network, a Web3 alternative future.
The 2013 Ethereum white paper had previously allowed devotees to imagine a DAO, for example.
Web3 now has concepts like decentralized autonomous organizations, sovereign digital identity, censorship-free data storage, and data divided by multiple servers. They intertwine discussions about the “Web3” movement and its viability.
These ideas are linked by Cobie's initial Web3 definition. A key component of Web3 should be “ownership of value” for one's own content and data.
Noting that “late-stage capitalism greedcorps that make you buy a fractionalized micropayment NFT on Cardano to operate your electric toothbrush” may build the new web, he notes that “crypto founders are too rich to care anymore.”
Very Important
Many critics of Web3 claim it isn't practical or achievable. Web3 critics like Moxie Marlinspike (creator of sslstrip and Signal/TextSecure) can never see people running their own servers. Early in January, he argued that protocols are more difficult to create than platforms.
While this is true, some projects, like the file storage protocol IPFS, allow users to choose which jurisdictions their data is shared between.
But full decentralization is a difficult problem. Suhaza, replying to Moxie, said:
”People don't want to run servers... Companies are now offering API access to an Ethereum node as a service... Almost all DApps interact with the blockchain using Infura or Alchemy. In fact, when a DApp uses a wallet like MetaMask to interact with the blockchain, MetaMask is just calling Infura!
So, here are the questions: Web3: Is it a go? Is it truly decentralized?
Web3 history is shaped by Web2 failure.
This is the story of how the Internet was turned upside down...
Then came the vision. Everyone can create content for free. Decentralized open-source believers like Tim Berners-Lee popularized it.
Real-world data trade-offs for content creation and pricing.
A giant Wikipedia page married to a giant Craig's List. No ads, no logins, and a private web carve-up. For free usage, you give up your privacy and data to the algorithmic targeted advertising of Web 2.
Our data is centralized and savaged by giant corporations. Data localization rules and geopolitical walls like China's Great Firewall further fragment the internet.
The decentralized Web3 reflects Berners-original Lee's vision: "No permission is required from a central authority to post anything... there is no central controlling node and thus no single point of failure." Now he runs Solid, a Web3 data storage startup.
So Web3 starts with decentralized servers and data privacy.
Web3 begins with decentralized storage.
Data decentralization is a key feature of the Web3 tech stack. Web2 has closed databases. Large corporations like Facebook, Google, and others go to great lengths to collect, control, and monetize data. We want to change it.
Amazon, Google, Microsoft, Alibaba, and Huawei, according to Gartner, currently control 80% of the global cloud infrastructure market. Web3 wants to change that.
Decentralization enlarges power structures by giving participants a stake in the network. Users own data on open encrypted networks in Web3. This area has many projects.
Apps like Filecoin and IPFS have led the way. Data is replicated across multiple nodes in Web3 storage providers like Filecoin.
But the new tech stack and ideology raise many questions.
Giving users control over their data
According to Ryan Kris, COO of Verida, his “Web3 vision” is “empowering people to control their own data.”
Verida targets SDKs that address issues in the Web3 stack: identity, messaging, personal storage, and data interoperability.
A big app suite? “Yes, but it's a frontier technology,” he says. They are currently building a credentialing system for decentralized health in Bermuda.
By empowering individuals, how will Web3 create a fairer internet? Kris, who has worked in telecoms, finance, cyber security, and blockchain consulting for decades, admits it is difficult:
“The viability of Web3 raises some good business questions,” he adds. “How can users regain control over centralized personal data? How are startups motivated to build products and tools that support this transition? How are existing Web2 companies encouraged to pivot to a Web3 business model to compete with market leaders?
Kris adds that new technologies have regulatory and practical issues:
"On storage, IPFS is great for redundantly sharing public data, but not designed for securing private personal data. It is not controlled by the users. When data storage in a specific country is not guaranteed, regulatory issues arise."
Each project has varying degrees of decentralization. The diehards say DApps that use centralized storage are no longer “Web3” companies. But fully decentralized technology is hard to build.
Web2.5?
Some argue that we're actually building Web2.5 businesses, which are crypto-native but not fully decentralized. This is vital. For example, the NFT may be on a blockchain, but it is linked to centralized data repositories like OpenSea. A server failure could result in data loss.
However, according to Apollo Capital crypto analyst David Angliss, OpenSea is “not exactly community-led”. Also in 2021, much to the chagrin of crypto enthusiasts, OpenSea tried and failed to list on the Nasdaq.
This is where Web2.5 is defined.
“Web3 isn't a crypto segment. “Anything that uses a blockchain for censorship resistance is Web3,” Angliss tells us.
“Web3 gives users control over their data and identity. This is not possible in Web2.”
“Web2 is like feudalism, with walled-off ecosystems ruled by a few. For example, an honest user owned the Instagram account “Meta,” which Facebook rebranded and then had to make up a reason to suspend. Not anymore with Web3. If I buy ‘Ethereum.ens,' Ethereum cannot take it away from me.”
Angliss uses OpenSea as a Web2.5 business example. Too decentralized, i.e. censorship resistant, can be unprofitable for a large company like OpenSea. For example, OpenSea “enables NFT trading”. But it also stopped the sale of stolen Bored Apes.”
Web3 (or Web2.5, depending on the context) has been described as a new way to privatize internet.
“Being in the crypto ecosystem doesn't make it Web3,” Angliss says. The biggest risk is centralized closed ecosystems rather than a growing Web3.
LooksRare and OpenDAO are two community-led platforms that are more decentralized than OpenSea. LooksRare has even been “vampire attacking” OpenSea, indicating a Web3 competitor to the Web2.5 NFT king could find favor.
The addition of a token gives these new NFT platforms more options for building customer loyalty. For example, OpenSea charges a fee that goes nowhere. Stakeholders of LOOKS tokens earn 100% of the trading fees charged by LooksRare on every basic sale.
Maybe Web3's time has come.
So whose data is it?
Continuing criticisms of Web3 platforms' decentralization may indicate we're too early. Users want to own and store their in-game assets and NFTs on decentralized platforms like the Metaverse and play-to-earn games. Start-ups like Arweave, Sia, and Aleph.im propose an alternative.
To be truly decentralized, Web3 requires new off-chain models that sidestep cloud computing and Web2.5.
“Arweave and Sia emerged as formidable competitors this year,” says the Messari Report. They seek to reduce the risk of an NFT being lost due to a data breach on a centralized server.
Aleph.im, another Web3 cloud competitor, seeks to replace cloud computing with a service network. It is a decentralized computing network that supports multiple blockchains by retrieving and encrypting data.
“The Aleph.im network provides a truly decentralized alternative where it is most needed: storage and computing,” says Johnathan Schemoul, founder of Aleph.im. For reasons of consensus and security, blockchains are not designed for large storage or high-performance computing.
As a result, large data sets are frequently stored off-chain, increasing the risk for centralized databases like OpenSea
Aleph.im enables users to own digital assets using both blockchains and off-chain decentralized cloud technologies.
"We need to go beyond layer 0 and 1 to build a robust decentralized web. The Aleph.im ecosystem is proving that Web3 can be decentralized, and we intend to keep going.”
Aleph.im raised $10 million in mid-January 2022, and Ubisoft uses its network for NFT storage. This is the first time a big-budget gaming studio has given users this much control.
It also suggests Web3 could work as a B2B model, even if consumers aren't concerned about “decentralization.” Starting with gaming is common.
Can Tokenomics help Web3 adoption?
Web3 consumer adoption is another story. The average user may not be interested in all this decentralization talk. Still, how much do people value privacy over convenience? Can tokenomics solve the privacy vs. convenience dilemma?
Holon Global Investments' Jonathan Hooker tells us that human internet behavior will change. “Do you own Bitcoin?” he asks in his Web3 explanation. How does it feel to own and control your own sovereign wealth? Then:
“What if you could own and control your data like Bitcoin?”
“The business model must find what that person values,” he says. Putting their own health records on centralized systems they don't control?
“How vital are those medical records to that person at a critical time anywhere in the world? Filecoin and IPFS can help.”
Web3 adoption depends on NFT storage competition. A free off-chain storage of NFT metadata and assets was launched by Filecoin in April 2021.
Denationalization and blockchain technology have significant implications for data ownership and compensation for lending, staking, and using data.
Tokenomics can change human behavior, but many people simply sign into Web2 apps using a Facebook API without hesitation. Our data is already owned by Google, Baidu, Tencent, and Facebook (and its parent company Meta). Is it too late to recover?
Maybe. “Data is like fruit, it starts out fresh but ages,” he says. "Big Tech's data on us will expire."
Web3 founder Kris agrees with Hooker that “value for data is the issue, not privacy.” People accept losing their data privacy, so tokenize it. People readily give up data, so why not pay for it?
"Personalized data offering is valuable in personalization. “I will sell my social media data but not my health data.”
Purists and mass consumer adoption struggle with key management.
Others question data tokenomics' optimism. While acknowledging its potential, Box founder Aaron Levie questioned the viability of Web3 models in a Tweet thread:
“Why? Because data almost always works in an app. A product and APIs that moved quickly to build value and trust over time.”
Levie contends that tokenomics may complicate matters. In addition to community governance and tokenomics, Web3 ideals likely add a new negotiation vector.
“These are hard problems about human coordination, not software or blockchains,”. Using a Facebook API is simple. The business model and user interface are crucial.
For example, the crypto faithful have a common misconception about logging into Web3. It goes like this: Web 1 had usernames and passwords. Web 2 uses Google, Facebook, or Twitter APIs, while Web 3 uses your wallet. Pay with Ethereum on MetaMask, for example.
But Levie is correct. Blockchain key management is stressed in this meme. Even seasoned crypto enthusiasts have heart attacks, let alone newbies.
Web3 requires a better user experience, according to Kris, the company's founder. “How does a user recover keys?”
And at this point, no solution is likely to be completely decentralized. So Web3 key management can be improved. ”The moment someone loses control of their keys, Web3 ceases to exist.”
That leaves a major issue for Web3 purists. Put this one in the too-hard basket.
Is 2022 the Year of Web3?
Web3 must first solve a number of issues before it can be mainstreamed. It must be better and cheaper than Web2.5, or have other significant advantages.
Web3 aims for scalability without sacrificing decentralization protocols. But decentralization is difficult and centralized services are more convenient.
Ethereum co-founder Vitalik Buterin himself stated recently"
This is why (centralized) Binance to Binance transactions trump Ethereum payments in some places because they don't have to be verified 12 times."
“I do think a lot of people care about decentralization, but they're not going to take decentralization if decentralization costs $8 per transaction,” he continued.
“Blockchains need to be affordable for people to use them in mainstream applications... Not for 2014 whales, but for today's users."
For now, scalability, tokenomics, mainstream adoption, and decentralization believers seem to be holding Web3 hostage.
Much like crypto's past.
But stay tuned.
ANDREW SINGER
3 years ago
Crypto seen as the ‘future of money’ in inflation-mired countries
Crypto as the ‘future of money' in inflation-stricken nations
Citizens of devalued currencies “need” crypto. “Nice to have” in the developed world.
According to Gemini's 2022 Global State of Crypto report, cryptocurrencies “evolved from what many considered a niche investment into an established asset class” last year.
More than half of crypto owners in Brazil (51%), Hong Kong (51%), and India (54%), according to the report, bought cryptocurrency for the first time in 2021.
The study found that inflation and currency devaluation are powerful drivers of crypto adoption, especially in emerging market (EM) countries:
“Respondents in countries that have seen a 50% or greater devaluation of their currency against the USD over the last decade were more than 5 times as likely to plan to purchase crypto in the coming year.”
Between 2011 and 2021, the real lost 218 percent of its value against the dollar, and 45 percent of Brazilians surveyed by Gemini said they planned to buy crypto in 2019.
The rand (South Africa's currency) has fallen 103 percent in value over the last decade, second only to the Brazilian real, and 32 percent of South Africans expect to own crypto in the coming year. Mexico and India, the third and fourth highest devaluation countries, followed suit.
Compared to the US dollar, Hong Kong and the UK currencies have not devalued in the last decade. Meanwhile, only 5% and 8% of those surveyed in those countries expressed interest in buying crypto.
What can be concluded? Noah Perlman, COO of Gemini, sees various crypto use cases depending on one's location.
‘Need to have' investment in countries where the local currency has devalued against the dollar, whereas in the developed world it is still seen as a ‘nice to have'.
Crypto as money substitute
As an adjunct professor at New York University School of Law, Winston Ma distinguishes between an asset used as an inflation hedge and one used as a currency replacement.
Unlike gold, he believes Bitcoin (BTC) is not a “inflation hedge”. They acted more like growth stocks in 2022. “Bitcoin correlated more closely with the S&P 500 index — and Ether with the NASDAQ — than gold,” he told Cointelegraph. But in the developing world, things are different:
“Inflation may be a primary driver of cryptocurrency adoption in emerging markets like Brazil, India, and Mexico.”
According to Justin d'Anethan, institutional sales director at the Amber Group, a Singapore-based digital asset firm, early adoption was driven by countries where currency stability and/or access to proper banking services were issues. Simply put, he said, developing countries want alternatives to easily debased fiat currencies.
“The larger flows may still come from institutions and developed countries, but the actual users may come from places like Lebanon, Turkey, Venezuela, and Indonesia.”
“Inflation is one of the factors that has and continues to drive adoption of Bitcoin and other crypto assets globally,” said Sean Stein Smith, assistant professor of economics and business at Lehman College.
But it's only one factor, and different regions have different factors, says Stein Smith. As a “instantaneously accessible, traceable, and cost-effective transaction option,” investors and entrepreneurs increasingly recognize the benefits of crypto assets. Other places promote crypto adoption due to “potential capital gains and returns”.
According to the report, “legal uncertainty around cryptocurrency,” tax questions, and a general education deficit could hinder adoption in Asia Pacific and Latin America. In Africa, 56% of respondents said more educational resources were needed to explain cryptocurrencies.
Not only inflation, but empowering our youth to live better than their parents without fear of failure or allegiance to legacy financial markets or products, said Monica Singer, ConsenSys South Africa lead. Also, “the issue of cash and remittances is huge in Africa, as is the issue of social grants.”
Money's future?
The survey found that Brazil and Indonesia had the most cryptocurrency ownership. In each country, 41% of those polled said they owned crypto. Only 20% of Americans surveyed said they owned cryptocurrency.
These markets are more likely to see cryptocurrencies as the future of money. The survey found:
“The majority of respondents in Latin America (59%) and Africa (58%) say crypto is the future of money.”
Brazil (66%), Nigeria (63%), Indonesia (61%), and South Africa (57%). Europe and Australia had the fewest believers, with Denmark at 12%, Norway at 15%, and Australia at 17%.
Will the Ukraine conflict impact adoption?
The poll was taken before the war. Will the devastating conflict slow global crypto adoption growth?
With over $100 million in crypto donations directly requested by the Ukrainian government since the war began, Stein Smith says the war has certainly brought crypto into the mainstream conversation.
“This real-world demonstration of decentralized money's power could spur wider adoption, policy debate, and increased use of crypto as a medium of exchange.”
But the war may not affect all developing nations. “The Ukraine war has no impact on African demand for crypto,” Others loom larger. “Yes, inflation, but also a lack of trust in government in many African countries, and a young demographic very familiar with mobile phones and the internet.”
A major success story like Mpesa in Kenya has influenced the continent and may help accelerate crypto adoption. Creating a plan when everyone you trust fails you is directly related to the African spirit, she said.
On the other hand, Ma views the Ukraine conflict as a sort of crisis check for cryptocurrencies. For those in emerging markets, the Ukraine-Russia war has served as a “stress test” for the cryptocurrency payment rail, he told Cointelegraph.
“These emerging markets may see the greatest future gains in crypto adoption.”
Inflation and currency devaluation are persistent global concerns. In such places, Bitcoin and other cryptocurrencies are now seen as the “future of money.” Not in the developed world, but that could change with better regulation and education. Inflation and its impact on cash holdings are waking up even Western nations.
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Nathan Reiff
3 years ago
Howey Test and Cryptocurrencies: 'Every ICO Is a Security'
What Is the Howey Test?
To determine whether a transaction qualifies as a "investment contract" and thus qualifies as a security, the Howey Test refers to the U.S. Supreme Court cass: the Securities Act of 1933 and the Securities Exchange Act of 1934. According to the Howey Test, an investment contract exists when "money is invested in a common enterprise with a reasonable expectation of profits from others' efforts."
The test applies to any contract, scheme, or transaction. The Howey Test helps investors and project backers understand blockchain and digital currency projects. ICOs and certain cryptocurrencies may be found to be "investment contracts" under the test.
Understanding the Howey Test
The Howey Test comes from the 1946 Supreme Court case SEC v. W.J. Howey Co. The Howey Company sold citrus groves to Florida buyers who leased them back to Howey. The company would maintain the groves and sell the fruit for the owners. Both parties benefited. Most buyers had no farming experience and were not required to farm the land.
The SEC intervened because Howey failed to register the transactions. The court ruled that the leaseback agreements were investment contracts.
This established four criteria for determining an investment contract. Investing contract:
- An investment of money
- n a common enterprise
- With the expectation of profit
- To be derived from the efforts of others
In the case of Howey, the buyers saw the transactions as valuable because others provided the labor and expertise. An income stream was obtained by only investing capital. As a result of the Howey Test, the transaction had to be registered with the SEC.
Howey Test and Cryptocurrencies
Bitcoin is notoriously difficult to categorize. Decentralized, they evade regulation in many ways. Regardless, the SEC is looking into digital assets and determining when their sale qualifies as an investment contract.
The SEC claims that selling digital assets meets the "investment of money" test because fiat money or other digital assets are being exchanged. Like the "common enterprise" test.
Whether a digital asset qualifies as an investment contract depends on whether there is a "expectation of profit from others' efforts."
For example, buyers of digital assets may be relying on others' efforts if they expect the project's backers to build and maintain the digital network, rather than a dispersed community of unaffiliated users. Also, if the project's backers create scarcity by burning tokens, the test is met. Another way the "efforts of others" test is met is if the project's backers continue to act in a managerial role.
These are just a few examples given by the SEC. If a project's success is dependent on ongoing support from backers, the buyer of the digital asset is likely relying on "others' efforts."
Special Considerations
If the SEC determines a cryptocurrency token is a security, many issues arise. It means the SEC can decide whether a token can be sold to US investors and forces the project to register.
In 2017, the SEC ruled that selling DAO tokens for Ether violated federal securities laws. Instead of enforcing securities laws, the SEC issued a warning to the cryptocurrency industry.
Due to the Howey Test, most ICOs today are likely inaccessible to US investors. After a year of ICOs, then-SEC Chair Jay Clayton declared them all securities.
SEC Chairman Gensler Agrees With Predecessor: 'Every ICO Is a Security'
Howey Test FAQs
How Do You Determine If Something Is a Security?
The Howey Test determines whether certain transactions are "investment contracts." Securities are transactions that qualify as "investment contracts" under the Securities Act of 1933 and the Securities Exchange Act of 1934.
The Howey Test looks for a "investment of money in a common enterprise with a reasonable expectation of profits from others' efforts." If so, the Securities Act of 1933 and the Securities Exchange Act of 1934 require disclosure and registration.
Why Is Bitcoin Not a Security?
Former SEC Chair Jay Clayton clarified in June 2018 that bitcoin is not a security: "Cryptocurrencies: Replace the dollar, euro, and yen with bitcoin. That type of currency is not a security," said Clayton.
Bitcoin, which has never sought public funding to develop its technology, fails the SEC's Howey Test. However, according to Clayton, ICO tokens are securities.
A Security Defined by the SEC
In the public and private markets, securities are fungible and tradeable financial instruments. The SEC regulates public securities sales.
The Supreme Court defined a security offering in SEC v. W.J. Howey Co. In its judgment, the court defines a security using four criteria:
- An investment contract's existence
- The formation of a common enterprise
- The issuer's profit promise
- Third-party promotion of the offering
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Alex Carter
3 years ago
Metaverse, Web 3, and NFTs are BS
Most crypto is probably too.
The goals of Web 3 and the metaverse are admirable and attractive. Who doesn't want an internet owned by users? Who wouldn't want a digital realm where anything is possible? A better way to collaborate and visit pals.
Companies pursue profits endlessly. Infinite growth and revenue are expected, and if a corporation needs to sacrifice profits to safeguard users, the CEO, board of directors, and any executives will lose to the system of incentives that (1) retains workers with shares and (2) makes a company answerable to all of its shareholders. Only the government can guarantee user protections, but we know how successful that is. This is nothing new, just a problem with modern capitalism and tech platforms that a user-owned internet might remedy. Moxie, the founder of Signal, has a good articulation of some of these current Web 2 tech platform problems (but I forget the timestamp); thoughts on JRE aside, this episode is worth listening to (it’s about a bunch of other stuff too).
Moxie Marlinspike, founder of Signal, on the Joe Rogan Experience podcast.
Source: https://open.spotify.com/episode/2uVHiMqqJxy8iR2YB63aeP?si=4962b5ecb1854288
Web 3 champions are premature. There was so much spectacular growth during Web 2 that the next wave of founders want to make an even bigger impact, while investors old and new want a chance to get a piece of the moonshot action. Worse, crypto enthusiasts believe — and financially need — the fact of its success to be true, whether or not it is.
I’m doubtful that it will play out like current proponents say. Crypto has been the white-hot focus of SV’s best and brightest for a long time yet still struggles to come up any mainstream use case other than ‘buy, HODL, and believe’: a store of value for your financial goals and wishes. Some kind of the metaverse is likely, but will it be decentralized, mostly in VR, or will Meta (previously FB) play a big role? Unlikely.
METAVERSE
The metaverse exists already. Our digital lives span apps, platforms, and games. I can design a 3D house, invite people, use Discord, and hang around in an artificial environment. Millions of gamers do this in Rust, Minecraft, Valheim, and Animal Crossing, among other games. Discord's voice chat and Slack-like servers/channels are the present social anchor, but the interface, integrations, and data portability will improve. Soon you can stream YouTube videos on digital house walls. You can doodle, create art, play Jackbox, and walk through a door to play Apex Legends, Fortnite, etc. Not just gaming. Digital whiteboards and screen sharing enable real-time collaboration. They’ll review code and operate enterprises. Music is played and made. In digital living rooms, they'll watch movies, sports, comedy, and Twitch. They'll tweet, laugh, learn, and shittalk.
The metaverse is the evolution of our digital life at home, the third place. The closest analog would be Discord and the integration of Facebook, Slack, YouTube, etc. into a single, 3D, customizable hangout space.
I'm not certain this experience can be hugely decentralized and smoothly choreographed, managed, and run, or that VR — a luxury, cumbersome, and questionably relevant technology — must be part of it. Eventually, VR will be pragmatic, achievable, and superior to real life in many ways. A total sensory experience like the Matrix or Sword Art Online, where we're physically hooked into the Internet yet in our imaginations we're jumping, flying, and achieving athletic feats we never could in reality; exploring realms far grander than our own (as grand as it is). That VR is different from today's.
Ben Thompson released an episode of Exponent after Facebook changed its name to Meta. Ben was suspicious about many metaverse champion claims, but he made a good analogy between Oculus and the PC. The PC was initially far too pricey for the ordinary family to afford. It began as a business tool. It got so powerful and pervasive that it affected our personal life. Price continues to plummet and so much consumer software was produced that it's impossible to envision life without a home computer (or in our pockets). If Facebook shows product market fit with VR in business, through use cases like remote work and collaboration, maybe VR will become practical in our personal lives at home.
Before PCs, we relied on Blockbuster, the Yellow Pages, cabs to get to the airport, handwritten taxes, landline phones to schedule social events, and other archaic methods. It is impossible for me to conceive what VR, in the form of headsets and hand controllers, stands to give both professional and especially personal digital experiences that is an order of magnitude better than what we have today. Is looking around better than using a mouse to examine a 3D landscape? Do the hand controls make x10 or x100 work or gaming more fun or efficient? Will VR replace scalable Web 2 methods and applications like Web 1 and Web 2 did for analog? I don't know.
My guess is that the metaverse will arrive slowly, initially on displays we presently use, with more app interoperability. I doubt that it will be controlled by the people or by Facebook, a corporation that struggles to properly innovate internally, as practically every large digital company does. Large tech organizations are lousy at hiring product-savvy employees, and if they do, they rarely let them explore new things.
These companies act like business schools when they seek founders' results, with bureaucracy and dependency. Which company launched the last popular consumer software product that wasn't a clone or acquisition? Recent examples are scarce.
Web 3
Investors and entrepreneurs of Web 3 firms are declaring victory: 'Web 3 is here!' Web 3 is the future! Many profitable Web 2 enterprises existed when Web 2 was defined. The word was created to explain user behavior shifts, not a personal pipe dream.
Origins of Web 2: http://www.oreilly.com/pub/a/web2/archive/what-is-web-20.html
One of these Web 3 startups may provide the connecting tissue to link all these experiences or become one of the major new digital locations. Even so, successful players will likely use centralized power arrangements, as Web 2 businesses do now. Some Web 2 startups integrated our digital lives. Rockmelt (2010–2013) was a customizable browser with bespoke connectors to every program a user wanted; imagine seeing Facebook, Twitter, Discord, Netflix, YouTube, etc. all in one location. Failure. Who knows what Opera's doing?
Silicon Valley and tech Twitter in general have a history of jumping on dumb bandwagons that go nowhere. Dot-com crash in 2000? The huge deployment of capital into bad ideas and businesses is well-documented. And live video. It was the future until it became a niche sector for gamers. Live audio will play out a similar reality as CEOs with little comprehension of audio and no awareness of lasting new user behavior deceive each other into making more and bigger investments on fool's gold. Twitter trying to buy Clubhouse for $4B, Spotify buying Greenroom, Facebook exploring live audio and 'Tiktok for audio,' and now Amazon developing a live audio platform. This live audio frenzy won't be worth their time or energy. Blind guides blind. Instead of learning from prior failures like Twitter buying Periscope for $100M pre-launch and pre-product market fit, they're betting on unproven and uncompelling experiences.
NFTs
NFTs are also nonsense. Take Loot, a time-limited bag drop of "things" (text on the blockchain) for a game that didn't exist, bought by rich techies too busy to play video games and foolish enough to think they're getting in early on something with a big reward. What gaming studio is incentivized to use these items? Who's encouraged to join? No one cares besides Loot owners who don't have NFTs. Skill, merit, and effort should be rewarded with rare things for gamers. Even if a small minority of gamers can make a living playing, the average game's major appeal has never been to make actual money - that's a profession.
No game stays popular forever, so how is this objective sustainable? Once popularity and usage drop, exclusive crypto or NFTs will fall. And if NFTs are designed to have cross-game appeal, incentives apart, 30 years from now any new game will need millions of pre-existing objects to build around before they start. It doesn’t work.
Many games already feature item economies based on real in-game scarcity, generally for cosmetic things to avoid pay-to-win, which undermines scaled gaming incentives for huge player bases. Counter-Strike, Rust, etc. may be bought and sold on Steam with real money. Since the 1990s, unofficial cross-game marketplaces have sold in-game objects and currencies. NFTs aren't needed. Making a popular, enjoyable, durable game is already difficult.
With NFTs, certain JPEGs on the internet went from useless to selling for $69 million. Why? Crypto, Web 3, early Internet collectibles. NFTs are digital Beanie Babies (unlike NFTs, Beanie Babies were a popular children's toy; their destinies are the same). NFTs are worthless and scarce. They appeal to crypto enthusiasts seeking for a practical use case to support their theory and boost their own fortune. They also attract to SV insiders desperate not to miss the next big thing, not knowing what it will be. NFTs aren't about paying artists and creators who don't get credit for their work.
South Park's Underpants Gnomes
NFTs are a benign, foolish plan to earn money on par with South Park's underpants gnomes. At worst, they're the world of hucksterism and poor performers. Or those with money and enormous followings who, like everyone, don't completely grasp cryptocurrencies but are motivated by greed and status and believe Gary Vee's claim that CryptoPunks are the next Facebook. Gary's watertight logic: if NFT prices dip, they're on the same path as the most successful corporation in human history; buy the dip! NFTs aren't businesses or museum-worthy art. They're bs.
Gary Vee compares NFTs to Amazon.com. vm.tiktok.com/TTPdA9TyH2
We grew up collecting: Magic: The Gathering (MTG) cards printed in the 90s are now worth over $30,000. Imagine buying a digital Magic card with no underlying foundation. No one plays the game because it doesn't exist. An NFT is a contextless image someone conned you into buying a certificate for, but anyone may copy, paste, and use. Replace MTG with Pokemon for younger readers.
When Gary Vee strongarms 30 tech billionaires and YouTube influencers into buying CryptoPunks, they'll talk about it on Twitch, YouTube, podcasts, Twitter, etc. That will convince average folks that the product has value. These guys are smart and/or rich, so I'll get in early like them. Cryptography is similar. No solid, scaled, mainstream use case exists, and no one knows where it's headed, but since the global crypto financial bubble hasn't burst and many people have made insane fortunes, regular people are putting real money into something that is highly speculative and could be nothing because they want a piece of the action. Who doesn’t want free money? Rich techies and influencers won't be affected; normal folks will.
Imagine removing every $1 invested in Bitcoin instantly. What would happen? How far would Bitcoin fall? Over 90%, maybe even 95%, and Bitcoin would be dead. Bitcoin as an investment is the only scalable widespread use case: it's confidence that a better use case will arise and that being early pays handsomely. It's like pouring a trillion dollars into a company with no business strategy or users and a CEO who makes vague future references.
New tech and efforts may provoke a 'get off my lawn' mentality as you approach 40, but I've always prided myself on having a decent bullshit detector, and it's flying off the handle at this foolishness. If we can accomplish a functional, responsible, equitable, and ethical user-owned internet, I'm for it.
Postscript:
I wanted to summarize my opinions because I've been angry about this for a while but just sporadically tweeted about it. A friend handed me a Dan Olson YouTube video just before publication. He's more knowledgeable, articulate, and convincing about crypto. It's worth seeing:
This post is a summary. See the original one here.
John Rampton
3 years ago
Ideas for Samples of Retirement Letters
Ready to quit full-time? No worries.
Baby Boomer retirement has accelerated since COVID-19 began. In 2020, 29 million boomers retire. Over 3 million more than in 2019. 75 million Baby Boomers will retire by 2030.
First, quit your work to enjoy retirement. Leave a professional legacy. Your retirement will start well. It all starts with a retirement letter.
Retirement Letter
Retirement letters are formal resignation letters. Different from other resignation letters, these don't tell your employer you're leaving. Instead, you're quitting.
Since you're not departing over grievances or for a better position or higher income, you may usually terminate the relationship amicably. Consulting opportunities are possible.
Thank your employer for their support and give them transition information.
Resignation letters aren't merely a formality. This method handles wages, insurance, and retirement benefits.
Retirement letters often accompany verbal notices to managers. Schedule a meeting before submitting your retirement letter to discuss your plans. The letter will be stored alongside your start date, salary, and benefits in your employee file.
Retirement is typically well-planned. Employers want 6-12 months' notice.
Summary
Guidelines for Giving Retirement Notice
Components of a Successful Retirement Letter
Template for Retirement Letter
Ideas for Samples of Retirement Letters
First Example of Retirement Letter
Second Example of Retirement Letter
Third Example of Retirement Letter
Fourth Example of Retirement Letter
Fifth Example of Retirement Letter
Sixth Example of Retirement Letter
Seventh Example of Retirement Letter
Eighth Example of Retirement Letter
Ninth Example of Retirement Letter
Tenth Example of Retirement Letter
Frequently Asked Questions
1. What is a letter of retirement?
2. Why should you include a letter of retirement?
3. What information ought to be in your retirement letter?
4. Must I provide notice?
5. What is the ideal retirement age?
Guidelines for Giving Retirement Notice
While starting a new phase, you're also leaving a job you were qualified for. You have years of experience. So, it may not be easy to fill a retirement-related vacancy.
Talk to your boss in person before sending a letter. Notice is always appreciated. Properly announcing your retirement helps you and your organization transition.
How to announce retirement:
Learn about the retirement perks and policies offered by the company. The first step in figuring out whether you're eligible for retirement benefits is to research your company's retirement policy.
Don't depart without providing adequate notice. You should give the business plenty of time to replace you if you want to retire in a few months.
Help the transition by offering aid. You could be a useful resource if your replacement needs training.
Contact the appropriate parties. The original copy should go to your boss. Give a copy to HR because they will manage your 401(k), pension, and health insurance.
Investigate the option of working as a consultant or part-time. If you desire, you can continue doing some limited work for the business.
Be nice to others. Describe your achievements and appreciation. Additionally, express your gratitude for giving you the chance to work with such excellent coworkers.
Make a plan for your future move. Simply updating your employer on your goals will help you maintain a good working relationship.
Use a formal letter or email to formalize your plans. The initial step is to speak with your supervisor and HR in person, but you must also give written notice.
Components of a Successful Retirement Letter
To write a good retirement letter, keep in mind the following:
A formal salutation. Here, the voice should be deliberate, succinct, and authoritative.
Be specific about your intentions. The key idea of your retirement letter is resignation. Your decision to depart at this time should be reflected in your letter. Remember that your intention must be clear-cut.
Your deadline. This information must be in resignation letters. Laws and corporate policies may both stipulate a minimum amount of notice.
A kind voice. Your retirement letter shouldn't contain any resentments, insults, or other unpleasantness. Your letter should be a model of professionalism and grace. A straightforward thank you is a terrific approach to accomplish that.
Your ultimate goal. Chaos may start to happen as soon as you turn in your resignation letter. Your position will need to be filled. Additionally, you will have to perform your obligations up until a successor is found. Your availability during the interim period should be stated in your resignation letter.
Give us a way to reach you. Even if you aren't consulting, your company will probably get in touch with you at some point. They might send you tax documents and details on perks. By giving your contact information, you can make this process easier.
Template for Retirement Letter
Identify
Title you held
Address
Supervisor's name
Supervisor’s position
Company name
HQ address
Date
[SUPERVISOR],
1.
Inform that you're retiring. Include your last day worked.
2.
Employer thanks. Mention what you're thankful for. Describe your accomplishments and successes.
3.
Helping moves things ahead. Plan your retirement. Mention your consultancy interest.
Sincerely,
[Signature]
First and last name
Phone number
Personal Email
Ideas for Samples of Retirement Letters
First Example of Retirement Letter
Martin D. Carey
123 Fleming St
Bloomfield, New Jersey 07003
(555) 555-1234
June 6th, 2022
Willie E. Coyote
President
Acme Co
321 Anvil Ave
Fairfield, New Jersey 07004
Dear Mr. Coyote,
This letter notifies Acme Co. of my retirement on August 31, 2022.
There has been no other organization that has given me that sense of belonging and purpose.
My fifteen years at the helm of the Structural Design Division have given me a strong sense of purpose. I’ve been fortunate to have your support, and I’ll be always grateful for the opportunity you offered me.
I had a difficult time making this decision. As a result of finding a small property in Arizona where we will be able to spend our remaining days together, my wife and I have decided to officially retire.
In spite of my regret at being unable to contribute to the firm we’ve built, I believe it is wise to move on.
My heart will always belong to Acme Co. Thank you for the opportunity and best of luck in the years to come.
Sincerely,
Martin D. Carey
Second Example of Retirement Letter
Gustavo Fring
Los Pollas Hermanos
12000–12100 Coors Rd SW,
Albuquerque, New Mexico 87045
Dear Mr. Fring,
I write this letter to announce my formal retirement from Los Pollas Hermanos as manager, effective October 15.
As an employee at Los Pollas Hermanos, I appreciate all the great opportunities you have given me. It has been a pleasure to work with and learn from my colleagues for the past 10 years, and I am looking forward to my next challenge.
If there is anything I can do to assist during this time, please let me know.
Sincerely,
Linda T. Crespo
Third Example of Retirement Letter
William M. Arviso
4387 Parkview Drive
Tustin, CA 92680
May 2, 2023
Tony Stark
Owner
Stark Industries
200 Industrial Avenue
Long Beach, CA 90803
Dear Tony:
I’m writing to inform you that my final day of work at Stark Industries will be May14, 2023. When that time comes, I intend to retire.
As I embark on this new chapter in my life, I would like to thank you and the entire Stark Industries team for providing me with so many opportunities. You have all been a pleasure to work with and I will miss you all when I retire.
I am glad to assist you with the transition in any way I can to ensure your new hire has a seamless experience. All ongoing projects will be completed until my retirement date, and all key information will be handed over to the team.
Once again, thank you for the opportunity to be part of the Stark Industries team. All the best to you and the team in the days to come.
Please do not hesitate to contact me if you require any additional information. In order to finalize my retirement plans, I’ll meet with HR and can provide any details that may be necessary.
Sincerely,
(Signature)
William M. Arviso
Fourth Example of Retirement Letter
Garcia, Barbara
First Street, 5432
New York City, NY 10001
(1234) (555) 123–1234
1 October 2022
Gunther
Owner
Central Perk
199 Lafayette St.
New York City, NY 10001
Mr. Gunther,
The day has finally arrived. As I never imagined, I will be formally retiring from Central Perk on November 1st, 2022.
Considering how satisfied I am with my current position, this may surprise you. It would be best if I retired now since my health has deteriorated, so I think this is a good time to do so.
There is no doubt that the past two decades have been wonderful. Over the years, I have seen a small coffee shop grow into one of the city’s top destinations.
It will be hard for me to leave this firm without wondering what more success we could have achieved. But I’m confident that you and the rest of the Central Perk team will achieve great things.
My family and I will never forget what you’ve done for us, and I am grateful for the chance you’ve given me. My house is always open to you.
Sincerely Yours
Garcia, Barbara
Fifth Example of Retirement Letter
Pat Williams
618 Spooky Place
Monstropolis, 23221
123–555–0031
pwilliams@email.com
Feb. 16, 2022
Mike Wazowski
Co-CEO
Monters, Inc.
324 Scare Road
Monstropolis
Dear Mr. Wazowski,
As a formal notice of my upcoming retirement, I am submitting this letter. I will be leaving Monters, Inc. on April 13.
These past 10 years as a marketing associate have provided me with many opportunities. Since we started our company a decade ago, we have seen the face of harnessing screams change dramatically into harnessing laughter. During my time working with this dynamic marketing team, I learned a lot about customer behavior and marketing strategies. Working closely with some of our long-standing clients, such as Boo, was a particular pleasure.
I would be happy to assist with the transition following my retirement. It would be my pleasure to assist in the hiring or training of my replacement. In order to spend more time with my family, I will also be able to offer part-time consulting services.
After I retire, I plan to cash out the eight unused vacation days I’ve accumulated and take my pension as a lump sum.
Thank you for the opportunity to work with Monters, Inc. In the years to come, I wish you all the best!
Sincerely,
Paul Williams
Sixth Example of Retirement Letter
Dear Micheal,
As In my tenure at Dunder Mifflin Paper Company, I have given everything I had. It has been an honor to work here. But I have decided to move on to new challenges and retire from my position — mainly bears, beets, and Battlestar Galactia.
I appreciate the opportunity to work here and learn so much. During my time at this company, I will always remember the good times and memories we shared. Wishing you all the best in the future.
Sincerely,
Dwight K. Shrute
Your signature
May 16
Seventh Example of Retirement Letter
Greetings, Bill
I am announcing my retirement from Initech, effective March 15, 2023.
Over the course of my career here, I’ve had the privilege of working with so many talented and inspiring people.
In 1999, when I began working as a customer service representative, we were a small organization located in a remote office park.
The fact that we now occupy a floor of the Main Street office building with over 150 employees continues to amaze me.
I am looking forward to spending more time with family and traveling the country in our RV. Although I will be sad to leave.
Please let me know if there are any extra steps I can take to facilitate this transfer.
Sincerely,
Frankin, RenitaEighth Example of Retirement Letter
Height Example of Retirement Letter
Bruce,
Please accept my resignation from Wayne Enterprises as Marketing Communications Director. My last day will be August 1, 2022.
The decision to retire has been made after much deliberation. Now that I have worked in the field for forty years, I believe it is a good time to begin completing my bucket list.
It was not easy for me to decide to leave the company. Having worked at Wayne Enterprises has been rewarding both professionally and personally. There are still a lot of memories associated with my first day as a college intern.
My intention was not to remain with such an innovative company, as you know. I was able to see the big picture with your help, however. Today, we are a force that is recognized both nationally and internationally.
In addition to your guidance, the bold, visionary leadership of our company contributed to the growth of our company.
My departure from the company coincides with a particularly hectic time. Despite my best efforts, I am unable to postpone my exit.
My position would be well served by an internal solution. I have a more than qualified marketing manager in Caroline Crown. It would be a pleasure to speak with you about this.
In case I can be of assistance during the switchover, please let me know. Contact us at (555)555–5555. As part of my responsibilities, I am responsible for making sure all work is completed to Wayne Enterprise’s stringent requirements. Having the opportunity to work with you has been a pleasure. I wish you continued success with your thriving business.
Sincerely,
Cash, Cole
Marketing/Communications
Ninth Example of Retirement Letter
Norman, Jamie
2366 Hanover Street
Whitestone, NY 11357
555–555–5555
15 October 2022
Mr. Lippman
Head of Pendant Publishing
600 Madison Ave.
New York, New York
Respected Mr. Lippman,
Please accept my resignation effective November 1, 2022.
Over the course of my ten years at Pendant Publishing, I’ve had a great deal of fun and I’m quite grateful for all the assistance I’ve received.
It was a pleasure to wake up and go to work every day because of our outstanding corporate culture and the opportunities for promotion and professional advancement available to me.
While I am excited about retiring, I am going to miss being part of our team. It’s my hope that I’ll be able to maintain the friendships I’ve formed here for a long time to come.
In case I can be of assistance prior to or following my departure, please let me know. If I can assist in any way to ensure a smooth transfer to my successor, I would be delighted to do so.
Sincerely,
Signed (hard copy letter)
Norman, Jamie
Tenth Example of Retirement Letter
17 January 2023
Greg S. Jackson
Cyberdyne Systems
18144 El Camino Real,
Sunnyvale, CA
Respected Mrs. Duncan,
I am writing to inform you that I will be resigning from Cyberdyne Systems as of March 1, 2023. I’m grateful to have had this opportunity, and it was a difficult decision to make.
My development as a programmer and as a more seasoned member of the organization has been greatly assisted by your coaching.
I have been proud of Cyberdyne Systems’ ethics and success throughout my 25 years at the company. Starting as a mailroom clerk and currently serving as head programmer.
The portfolios of our clients have always been handled with the greatest care by my colleagues. It is our employees and services that have made Cyberdyne Systems the success it is today.
During my tenure as head of my division, I’ve increased our overall productivity by 800 percent, and I expect that trend to continue after I retire.
In light of the fact that the process of replacing me may take some time, I would like to offer my assistance in any way I can.
The greatest contender for this job is Troy Ledford, my current assistant.
Also, before I leave, I would be willing to teach any partners how to use the programmer I developed to track and manage the development of Skynet.
Over the next few months, I’ll be enjoying vacations with my wife as well as my granddaughter moving to college.
If Cyberdyne Systems has any openings for consultants, please let me know. It has been a pleasure working with you over the last 25 years. I appreciate your concern and care.
Sincerely,
Greg S, Jackson
Questions and Answers
1. What is a letter of retirement?
Retirement letters tell your supervisor you're retiring. This informs your employer that you're departing, like a letter. A resignation letter also requests retirement benefits.
Supervisors frequently receive retirement letters and verbal resignations. Before submitting your retirement letter, meet to discuss your plans. This letter will be filed with your start date, salary, and benefits.
2. Why should you include a letter of retirement?
Your retirement letter should explain why you're leaving. When you quit, your manager and HR department usually know. Regardless, a retirement letter might help you leave on a positive tone. It ensures they have the necessary papers.
In your retirement letter, you tell the firm your plans so they can find your replacement. You may need to stay in touch with your company after sending your retirement letter until a successor is identified.
3. What information ought to be in your retirement letter?
Format it like an official letter. Include your retirement plans and retirement-specific statistics. Date may be most essential.
In some circumstances, benefits depend on when you resign and retire. A date on the letter helps HR or senior management verify when you gave notice and how long.
In addition to your usual salutation, address your letter to your manager or supervisor.
The letter's body should include your retirement date and transition arrangements. Tell them whether you plan to help with the transition or train a new employee. You may have a three-month time limit.
Tell your employer your job title, how long you've worked there, and your biggest successes. Personalize your letter by expressing gratitude for your career and outlining your retirement intentions. Finally, include your contact info.
4. Must I provide notice?
Two-week notice isn't required. Your company may require it. Some state laws contain exceptions.
Check your contract, company handbook, or HR to determine your retirement notice. Resigning may change the policy.
Regardless of your company's policy, notification is standard. Entry-level or junior jobs can be let go so the corporation can replace them.
Middle managers, high-level personnel, and specialists may take months to replace. Two weeks' notice is a courtesy. Start planning months ahead.
You can finish all jobs at that period. Prepare transition documents for coworkers and your replacement.
5. What is the ideal retirement age?
Depends on finances, state, and retirement plan. The average American retires at 62. The average retirement age is 66, according to Gallup's 2021 Economy and Personal Finance Survey.
Remember:
Before the age of 59 1/2, withdrawals from pre-tax retirement accounts, such as 401(k)s and IRAs, are subject to a penalty.
Benefits from Social Security can be accessed as early as age 62.
Medicare isn't available to you till you're 65,
Depending on the year of your birth, your Full Retirement Age (FRA) will be between 66 and 67 years old.
If you haven't taken them already, your Social Security benefits increase by 8% annually between ages 6 and 77.
Teronie Donalson
3 years ago
The best financial advice I've ever received and how you can use it.
Taking great financial advice is key to financial success.
A wealthy man told me to INVEST MY MONEY when I was young.
As I entered Starbucks, an older man was leaving. I noticed his watch and expensive-looking shirt, not like the guy in the photo, but one made of fine fabric like vicuna wool, which can only be shorn every two to three years. His Bentley confirmed my suspicions about his wealth.
This guy looked like James Bond, so I asked him how to get rich like him.
"Drug dealer?" he laughed.
Whether he was telling the truth, I'll never know, and I didn't want to be an accessory, but he quickly added, "Kid, invest your money; it will do wonders." He left.
When he told me to invest, he didn't say what. Later, I realized the investment game has so many levels that even if he drew me a blueprint, I wouldn't understand it.
The best advice I received was to invest my earnings. I must decide where to invest.
I'll preface by saying I'm not a financial advisor or Your financial advisor, but I'll share what I've learned from books, links, and sources. The rest is up to you.
Basically:
Invest your Money
Money is money, whether you call it cake, dough, moolah, benjamins, paper, bread, etc.
If you're lucky, you can buy one of the gold shirts in the photo.
Investing your money today means putting it towards anything that could be profitable.
According to the website Investopedia:
“Investing is allocating money to generate income or profit.”
You can invest in a business, real estate, or a skill that will pay off later.
Everyone has different goals and wants at different stages of life, so investing varies.
He was probably a sugar daddy with his Bentley, nice shirt, and Rolex.
In my twenties, I started making "good" money; now, in my forties, with a family and three kids, I'm building a legacy for my grandkids.
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” — Robert Kiyosaki.
Money isn't evil, but lack of it is.
Financial stress is a major source of problems, according to studies.
Being broke hurts, especially if you want to provide for your family or do things.
“An investment in knowledge pays the best interest.” — Benjamin Franklin.
Investing in knowledge is invaluable. Before investing, do your homework.
You probably didn't learn about investing when you were young, like I didn't. My parents were in survival mode, making investing difficult.
In my 20s, I worked in banking to better understand money.
So, why invest?
Growth requires investment.
Investing puts money to work and can build wealth. Your money may outpace inflation with smart investing. Compounding and the risk-return tradeoff boost investment growth.
Investing your money means you won't have to work forever — unless you want to.
Two common ways to make money are;
-working hard,
and
-interest or capital gains from investments.
Capital gains can help you invest.
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” — Robert G. Allen
If you keep your money in a savings account, you'll earn less than 2% interest at best; the bank makes money by loaning it out.
Savings accounts are a safe bet, but the low-interest rates limit your gains.
Don't skip it. An emergency fund should be in a savings account, not the market.
Other reasons to invest:
Investing can generate regular income.
If you own rental properties, the tenant's rent will add to your cash flow.
Daily, weekly, or monthly rentals (think Airbnb) generate higher returns year-round.
Capital gains are taxed less than earned income if you own dividend-paying or appreciating stock.
Time is on your side
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t — pays it.” — Albert Einstein
Historical data shows that young investors outperform older investors. So you can use compound interest over decades instead of investing at 45 and having less time to earn.
If I had taken that man's advice and invested in my twenties, I would have made a decent return by my thirties. (Depending on my investments)
So for those who live a YOLO (you only live once) life, investing can't hurt.
Investing increases your knowledge.
Lessons are clearer when you're invested. Each win boosts confidence and draws attention to losses. Losing money prompts you to investigate.
Before investing, I read many financial books, but I didn't understand them until I invested.
Now what?
What do you invest in? Equities, mutual funds, ETFs, retirement accounts, savings, business, real estate, cryptocurrencies, marijuana, insurance, etc.
The key is to start somewhere. Know you don't know everything. You must care.
“A journey of a thousand miles must begin with a single step.” — Lao Tzu.
Start simple because there's so much information. My first investment book was:
Robert Kiyosaki's "Rich Dad, Poor Dad"
This easy-to-read book made me hungry for more. This book is about the money lessons rich parents teach their children, which poor and middle-class parents neglect. The poor and middle-class work for money, while the rich let their assets work for them, says Kiyosaki.
There is so much to learn, but you gotta start somewhere.
More books:
***Wisdom
I hope I'm not suggesting that investing makes everything rosy. Remember three rules:
1. Losing money is possible.
2. Losing money is possible.
3. Losing money is possible.
You can lose money, so be careful.
Read, research, invest.
Golden rules for Investing your money
Never invest money you can't lose.
Financial freedom is possible regardless of income.
"Courage taught me that any sound investment will pay off, no matter how bad a crisis gets." Helu Carlos
"I'll tell you Wall Street's secret to wealth. When others are afraid, you're greedy. You're afraid when others are greedy. Buffett
Buy low, sell high, and have an exit strategy.
Ask experts or wealthy people for advice.
"With a good understanding of history, we can have a clear vision of the future." Helu Carlos
"It's not whether you're right or wrong, but how much money you make when you're right." Soros
"The individual investor should act as an investor, not a speculator." Graham
"It's different this time" is the most dangerous investment phrase. Templeton
Lastly,
Avoid quick-money schemes. Building wealth takes years, not months.
Start small and work your way up.
Thanks for reading!
This post is a summary. Read the full article here