VeChain/Vet: Why Isn’t The Price Rising?

a growing number of vet investors have been 
asking me why the market price seems to be   growing relatively slowly in comparison to 
many other cryptos particularly small cap   projects many of which have been doubling 
tripling in more over short periods of time   so why is it that vet seems to be moving so slowly 
especially when vechain have so much adoption and   genuine use and offer valuable real world services 
and i have talked about this particular subject   before but the number of requests for another 
updated video has been really high and i'll open   this video with the same statistic that i used 
to open the first video the price of vet over the   last year has risen by well over 25 to one a gain 
of over two and a half thousand percent in market   value which actually is very impressive i mean 
let's consider the alternatives what can you get   in terms of interest on savings maybe a tenth of 
a percent but even then you have to subtract the   eroding effect of inflation on the real purchasing 
power of money and if we look at the stock market   the s p 500 is yielding around two and a half 
percent per year which is again a very poor yield   i mean for every one hundred thousand dollars of 
cash invested into the s p 500 we're talking about   an average monthly return of around two hundred 
dollars perhaps less after taxes and i want to   take a moment out to ask you to subscribe to 
the channel if you're enjoying this video so far   as you'd really be helping me out and enabling 
me to spend more time producing these videos   and so anyway in terms of alternatives there 
really isn't very much out there in today's zero   interest rate highly liquid market where there is 
a huge oversupply of cash and a relative shortage   of income producing assets to be bought hence the 
incredible level of inflation in the stock market   and in real estate prices we've seen over the 
last five years in almost every developed country   in the world but the thing is many of you guys 
watching this video won't be interested in other   asset classes you'll want to know why vechain 
is performing poorly relative to other cryptos   and the reason will differ depending upon who 
we ask is it's effectively a subjective question   my opinion is that in the short term which can be 
a matter of weeks or a matter of months there is   no meaningful correlation between real value and 
market prices and what i mean is that if we are   looking at a six month chart the price movement 
of crypto a and crypto b may be very different   or very similar but it doesn't mean anything of 
short-term prices are determined by the consensus   opinion in the short term and as we all know very 
well the short-term consensus opinion is always   changing and is highly volatile and is therefore a 
very unreliable indicator of real value and that's   why i don't pay any attention to short term price 
movement the case an example is gamestop for those   who are unfamiliar with what happened to this 
stock a bunch of hedge funds and retail investors   became locked into a game of chicken as the hedge 
funds were generally shorting and the retail   investors generally buying long and anyway because 
a bunch of retail traders on reddit made a whole   bunch of money in the stock it dragged in a huge 
number of people and the price of the stock is   currently at around 180 per unit which is nearly 
50 times the market price this time last year   and likely way above the fair value as well and 
just because the market price of gamestop has   risen a lot it doesn't mean that it was a smart 
decision to buy because we also have to consider   the risk that we are taking on when making an 
investment and not just the potential for reward   i could take my life savings and find a casino 
and then bet all of my money on the roulette table   and maybe i'd win and i double my money without 
any real effort but the thing is it wouldn't be   a smart thing to do as the odds are always against 
me and in the case of crypto the market right now   is a lot like a casino and everybody seems to be 
winning and just like in a casino the biggest wins   are usually the poorest bets from a statistical 
point of view and yes there are many altcoins   which are doing 50 or 100 to one sometimes even 
more but they are equivalent to the horse with   odds of a thousand to one that being the chances 
of long-term success and the thing that is unique   about crypto is that everybody is a genius while 
the market is rising and being a value investor   the question which i ask myself is will this 
project be around and be in a better position than   today in 5 or 10 years time and very few of the 
old coins which are pumping at the moment satisfy   that criteria which then means that the only 
way to make money from them is to sell them to   somebody else at a higher price than i paid which 
means that it's then a race toward a cliff edge   and somebody has to be the one left holding the 
bag when the prices crash and the thing is vechain   in my view is one of the few crypto projects which 
has actual underlying value and which will likely   still be around in five or ten years time and i 
for one couldn't care less whether other people   are making more money than me right now i'm not 
worried about the three-month average i'm worried   about my long-term record and by the way i'm not 
saying that it's always a bad thing to chase gains   on altcoins but what i am saying is that somebody 
has to be caught without a chair when the music   stops playing and nobody ever thinks that it will 
be them and for me personally i'd much rather hold   a bunch of cryptos which i'm happy going to sleep 
at night not worrying about whether the market   will crash and i'll lose 80 or 90 percent of my 
capital anyway that's all for this video if you   enjoyed it and found it to be useful do me a favor 
and subscribe to the channel thanks for watching you

You May Also Like