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
