Why Am I the only One?
If you are in your mid-thirties to mid-forties you may have noticed something odd – none or very few of your smart and financially successful friends ‘get’ crypto’. Sure, they’ll listen politely and even throw in the odd nod of understanding but the light bulb never seems to turn on. These are same people who have in the past invested in stocks, bonds, and property and who are always on the look-out for opportunity and yet when it’s staring them in the face, in this instance, most choose to ignore it.
Why is that?
Well for this particular age bracket – there are a lot of factors stacked against them perceiving the value of crypto.
Success Holding You Back
Prior success in established markets has ‘framed’ their idea of acceptable investment vehicles. Their very success becomes a barrier to embracing an entirely new asset class.
It’s hard to let go – once you’ve spent 10-20 years mastering an area of investment – it is hard to let go and start again. Stocks to crypto – that’s a conceptual leap and a tech challenge too.
Folks in their 30s-40s aren’t digital natives. Sure, they can use a computer and an excel spread sheet but they are a transition generation who remember a time ‘before’ the internet, and mobile phones etc. Digital is not their natural space. This is in stark contrast to the current youthful – those in their teens – for them tokens as money don’t present any cognitive dissonance. Magical internet money isn’t ‘magical’.
Individual financial success doesn’t in any way imply an understanding of monetary history or policy -which none of your friends, regardless of intellectual ability, likely have. They were raised in the fiat era and know nothing else. The Keynesian model of economics is likely their entire world view on money, value creation, and economic growth.
The Status Quo
Questioning the system under which you have been successful is very difficult to do. When finding your way in the world- it’s natural to question the order of things but once you’ve had a measure of success most people are happy to accept the status quo and value it. Peering under the veil and finding your economy to be run on smoke and mirrors is something most people would rather not do.
Most of your friends still consume mainstream media to formulate/support their world view -whether it’s the Economist, the Financial Times or Bloomberg – they are not going to find much to bring them to crypto while referencing such sources.
When Will they Change their minds?
Just in time to lose some money (heading into the peak of the next bull run).
Ah well, you tried.