Noah Seidman: Throwing capital into the crypto space, during a depreciative cycle, is not necessarily a good idea. This reality requires a bit of mental retraining as compared to traditional business valuation methodology. The entire point of yield is to generate a salary without liquidating the principle assets.
Folks engaging in DeFi yield strategies, if profits aren’t taken the wrong take on the strategy is being executed. Imagine realizing the price of a crypto asset can be irrelevant and best thought of as a purchase.
When markets are bearish fear overwhelms. A great sense of comfort emerges once fear is conquered, the macro financial landscape digested, and a rational time horizon embraced. Consume this reality, own it, and execute on it.
We can provide AMM liquidity or we can own a share of all AMM liquidity. There comes a time when we perceive a single superior market opportunity. Sometimes there’s other vocal persons that see it as well, often it’s a personal realization producing a comforting bliss.
Where you place the majority of your capital is an expression of how you view the global financial landscape. How you diversify your overall portfolio is an expression of rationality accepting the system of control that prevents markets from playing out naturally.
Nobody is going to tell you altruistically where or how to allocate your capital. Anyone that does isn’t doing so out of their kindness. We must all come to our own conclusions after substantive due diligence. Remain rational my friends.
Executing on prevailing ideology & contrarian ideology simultaneously, with a balance that’s expressive of our own subjective opinion, results in an optimized deployment of capital. Not necessarily the most lucrative, but the most respectful of our self-fiduciary responsibility.
I’ve had securities over the years. Fully centralized entities, zero decentralization at all. A market claiming to be full of investor protection, yet a couple went bankrupt. No investor protection achieved, and no financial responsibility ensured.
Best part is that I’m comfortable with my value allocations no matter what. It’s not just conviction, it’s the rational deployment of capital to positions that cover both inflation & deflation and express my sentiment of global markets.
Inflation or deflation, I’m at the point where I’m indifferent. All that matters is the critical event occurs and we experience change for better or worse. The anticipation is tiring and likely will last much longer than anyone desires.
The goal is financial freedom, which does not equate to making as much money as possible. Making as much money as possible is not a rational goal.
Two things are assured during all market conditions. Transactions and degeneracy. The business of capitalizing on transaction fees remains functional in all market conditions, with spikes of revenue during periods of degeneracy.
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