The FTX Failure – Why I Hate Trading and Investing

Trading in risky assets on centralized platforms is not what the saving Bitcoin incentive encourages. This editorial is by Mark Maraia, an author of “Rainmaking Made Simple” as well as a Bitcoiner. It is tragic to see the number of Americans who are being forced to take risks with their hard-earned money by the Federal Reserve’s monetary policies. Those of us who have enough wealth are buying high-priced homes, high-priced stocks, and overhyped cryptocurrency — and bitcoin. Senator Lummis, among others, said that “Thank God for Bitcoin.” The collapse of the centralized exchange FTX was the latest example of why trading and investing are so difficult for me, especially in the sh*tcoin markets. You are not only taking huge risks when you gamble on the listed “assets”, but the entity holding your money is also gambling with it. You are essentially putting your trust in a third party that is only interested making money with your money and not giving you fair trading opportunities. I believe that bitcoin investing is a smart investment. They will enjoy a great ROI, far more than inflation and money printing, and take on the least risk. One of my mentors in my early days as an attorney was the executive director at a non-profit that provided housing for widows and orphans. He would often say that this organization could only invest in widows orphans stocks that were blue chip. This meant that they were less risky and more likely to last for the long-term. Although bitcoin is not yet mainstream, I believe it to be the best savings technology in human history. I am confident that Bitcoin will outlive my children and grandchildren. My mom, a smart buy-and-hold investor, heavily influenced my dislike for trading and preference for long-term investments.

In the mid 1980s, my career began as a defense lawyer for a penny stock company. I learned that the financial markets were rigged for a long time. So, I have never been a trader and I had a poor record as an investor until I invested in Bitcoin. I am reminded of the penny stock era when I see all the altcoin scams. I don’t want to convince you that the market is rigged, but I share this view to help the reader understand why trading and investing are so frustrating. I want equal playing fields. What I discovered was that there have been many insiders and cronies who have gotten preferential treatment which has made them wealthy for many decades. It seems like it is getting worse. I want something that works on a level playing ground and treats everyone equally. I want to be able to buy and keep this asset for at least ten years and feel confident that it will retain its value. I want one I can sleep soundly about. When the Fed devalues the currency at double the rate every year, the long-standing safe havens no longer work. Add to that the “negative interest rate” of having a financial institution charge me an annual 1% or more to manage my financial assets in IRAs or 401Ks, and you’ll be very cynical. Also, be aware of hidden 12b1 fees that mutual funds may charge. Be wary of middlemen who may be able to stand between you and your investments. Everyone wants a cut of your wealth. As a semi-retired boomer, I want a savings system that is bulletproof and secure. One that comes with its own digital delivery system, payment rails, that has never been hacked. It should also be nearly perfect in uptime. That is bitcoin. I want a savings platform that doesn’t have any third parties standing in the way of my assets and my money. I don’t need an IOU from a bank, brokerage firm, or financial institution. I want bitcoin. I want a savings system that is transparent enough to allow you to search the timechain back to the Genesis Block. That’s bitcoin. I want a savings system that preserves my hard-earned wealth, life force, and purchasing power for many years to come with minimal risk. That’s bitcoin. I want to save in an investment that is based upon absolute scarcity. That’s bitcoin. I want an asset that can be bought and sold 24/7/365 days per calendar year, and is more liquid than U.S. Treasuries. That’s bitcoin. I want an asset you must choose, and that is still in the dial-up phase. That’s bitcoin. I want an asset that completely eliminates the need to be an investor in Wall Street. I want an asset that allows my withdrawal from the fiat system. That’s bitcoin. Was the learning curve steep with bitcoin? Yes, it was steep but well worth it. If you spend hundreds, or even thousands of hours researching, you will discover that bitcoin’s ROI has made it the most profitable asset class over the past decade. It has no peer. Bitcoin has been resold due to the massive adoption of bitcoin by wealth funds, nation-states, hedge funds, Wall Street, family offices, and Wall Street, as well as recent increased regulatory certainty. Ray Dalio prefers bitcoin to bonds. Based on extensive research, I believe bitcoin has a lower risk profile that any other asset class in a world with manipulated interest rates. It is much safer than the U.S. dollars in my bank if it is properly self-custodied (which is a difficult task). Why? Because I don’t have any U.S. dollars — all I have is an IOU for dollars from my bank. As history has shown, governments, banks, and nation-states have a bleak track record when the unexpected happens. They have the power to seize our money, such as in Canada, Cypress, or by stealth currency debasement. If you are still unsure, I encourage all of you to get started on your research today. It is shocking and tragic that money is not taught in school. This is so important that I have taught many classes to seventh- and eighth-graders bitcoin and money. I will challenge anyone who feels up to the challenge to do the same! It is something I would love to see more than a hundred thousand bitcoiners teaching children about money and bitcoin in their local schools. Contact me to receive my outline and approach. You will be able to close the knowledge gap about bitcoin and money. This will give you an unfair advantage over people who are too lazy, ignorant, or afraid to do the work. You won’t regret doing it. The proverb goes, “A journey of 1,000 miles begins with one step.” Bitcoin is a language well worth learning. Bitcoin is also a belief system, which is growing in popularity faster than any other technology. You should either get on the train, or risk getting run over by the train. This guest post is by Mark Maraia. These opinions are not necessarily those of BTC Inc. and Bitcoin Magazine.


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