Summary of 137 - The Psychology of Crypto with Morgan Housel

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00:00:00 - 01:00:00

In this video, Morgan Housel discusses the psychology of investing in cryptocurrencies. He points out that there are three groups of people who invest in cryptocurrencies: maximalists, those who view themselves as investors, and those who view themselves as traders. He says that the unhealthy drive for constant profits can lead to people losing a lot of money.

00:00:00 In this episode, Morgan Housel discusses the psychology of crypto investors, explaining that the same rules of investor psychology apply to traditional financial markets and krypto. He then goes on to give practical advice on how to be a successful crypto investor.
00:05:00 Morgan Housel discusses the importance of psychology in financial investing, stressing the importance of being patient and not losing your mind during bouts of greed and fear. He also points out that anyone can be successful, as long as they are patient and have good financial knowledge.
00:10:00 According to Morgan Housel, the psychology of investing is similar for every new industry that has ever existed. Most investors lose money on new technologies, but a few make dynastic fortunes. In crypto, 99 out of every 100 scams will fail and only one will be successful. However, the important thing is that 99 out of every 100 projects will fail.
00:15:00 In this video, Morgan Housel discusses how people in general have a toxic relationship with money, specifically in regards to cryptocurrency. He argues that this is because cryptocurrencies are fighting against a more entrenched form of money, which is traditional money. He also mentions that this battle is a big time war, and that when people shift their focus from building new technologies to winning the battle against the incumbent, it can become dangerous.
00:20:00 In this video, Morgan Housel discusses the psychology of investing in cryptocurrencies. He points out that there are three groups of people who invest in cryptocurrencies: maximalists, those who view themselves as investors, and those who view themselves as traders. He says that the unhealthy drive for constant profits can lead to people losing a lot of money.
00:25:00 Morgan Housel discusses the psychology of investing, highlighting that in order to achieve successful long-term returns, investors must be willing to endure volatility and setbacks. He discusses the cost of admission to investing, noting that it is typically volatility and uncertainty. He provides an example of how this applies to the price of ether, which experienced a 95% drop in value after reaching a high of 1400 USD in February of 2018. However, over the following months, ether prices recovered to reach a value of 1550 USD by the end of 2018.
00:30:00 The video discusses the psychological cost of investing in volatile assets, and provides advice on how to manage this pain. It concludes by advising investors to remain mindful of their goals and ensure they are not overextending themselves.
00:35:00 In this video, Morgan Housel discusses the psychology of investing, noting that there are a small percentage of investors who are able to handle high volatility well. He also discusses the importance of accepting who you are as an investor, and the importance of learning from your mistakes. Finally, he provides advice on how to use arbitrarium, an ethereum layer 2 scaling solution.
00:40:00 In this video, Morgan Housel discusses the psychology of investing, looking at the different generations and how their views on investing shapes the way they approach the world. He also discusses the idea of "prisoners to our own past," how ignorant people can be to other people's views, and how difficult it can be for two people with different views on investing to communicate. He offers a two-fold takeaway from this: first, that most financial debates are actually disagreements between people with different circumstances, and second, that the key to successful investing is to be reflective about what you want and what your goals are.
00:45:00 In this video, Morgan Housel discusses the psychology of investing in cryptoassets, noting that while some people view them as a lottery ticket, others are beginning to learn about the technology. He believes that it is important for investors to be aware of both risk and luck, and notes that many people idolize successful investors without understanding luck.
00:50:00 The speaker discusses the importance of having enough money, and how it can be difficult to understand what this means in practice. He tells a story of a successful businessman who wanted more money and started a fraudulent scheme that ruined his life and those around him. He warns against succumbing to greed and urges listeners to have a sense of enough when it comes to their finances.
00:55:00 Morgan Housel discusses the psychology of cryptocurrency investors, focusing on the idea of freedom. He argues that those who have enough wealth and freedom are happier than those who are simply rich. He also discusses the idea of becoming "time rich and cash broke," and how this can be achieved through wise financial decisions and eliminating debt.

01:00:00 - 01:20:00

The video discusses the psychology of investing in cryptocurrency, highlighting the importance of both optimism and pessimism. It also discusses the risks associated with crypto investment and recommends subscribing to the channel's newsletter and community for extra benefits.

01:00:00 According to Morgan Housel, getting rich requires being an optimist and swinging for the fences, while staying rich requires a degree of conservatism and paranoia. These conflicting skills can be difficult to coexist, but those who have learned how to do so have had success over time.
01:05:00 According to Warren Buffett, one of the most successful investors of all time, being rational with your investing is better than being emotional. Rick Gurin, one of the three partners of Warren Buffett's investing team, lost all his money during the 1970s stock market crash, and Buffett tells the story of how he helped him get back on his feet. Rick Gorin went on to be a successful fund manager, but nowhere near as successful as Warren and Charlie Munger. This lesson is a reminder that everyone is different and some approaches to investing may be more reasonable than others, even if they're not necessarily the most rational.
01:10:00 Morgan Housel discusses the psychology of investing, noting that people change over time, which impacts their goals and strategies. He discusses a concept in psychology called the "end of history illusion," which says people are unaware of how much they've changed over time. He provides an example of a person who imagines themselves in the future and realizes that they will have changed a lot. This can impact their goals and strategies for long-term investing, leading to confusion and underperformance.
01:15:00 In his book "The Psychology of Money", Morgan Housel discusses the importance of pessimism and optimism in relation to investing. He points out that, while bad news can happen very quickly, good news usually takes a longer time to accumulate. This is why it is important to be aware of both sides of the coin, and to be patient in achieving success.
01:20:00 The video discusses the psychology of money, highlighting the book "The Psychology of Money" as a good resource for understanding crypto investing. It also discusses the risks associated with crypto investment, and recommends listening to the book or reading it, as well as subscribing to the channel's newsletter and community for extra benefits.