My investing style | Answering Crypto and Stock market critics

please stop with this senseless belief that people who are doing well in the stock market they are only making money because bull run is continuing do you really think that someone is that genius that they would accurately predict that you know what okay beer run has done all the fall has happened now bull run will happen we will start investing now this particular date hi everyone welcome to today's video so generally speaking people take very hard stands when it comes to investments for example on this channel i have spoken about a bunch of different things for example my viewpoint on using credit cards my viewpoint on investing in a house my viewpoint on investing in small cap mid cap stocks index funds fds so i have spoken about a wide variety of asset classes and usually after reading your responses i get a sense how people are perceiving these videos and people tend to take very hard steps for example if someone is convinced that you know what buying a house is probably the best decision out there then i can give you any logic arguments you will not believe in it but i try my best to give you honest transparent information and with that viewpoint i am going to talk about a very controversial topic which is cryptocurrencies the moment i say cryptocurrencies hey people drop off please don't do that because this has more to do with human emotions rather than just investment decisions you will learn a lot about investing psychology if you listen to this video that's one second people take a ballistic stand on cryptocurrencies either you will have people on the right hand side of the spectrum they will say that you know what crypto is fluff negative no acid this that okay and then you will have people on the other side of the spectrum who will say that you know okay crypto is the only thing that is there in the world you should sell everything put all your money in cryptos i am someone who has disclosed categorically through a series of videos series not just one series of videos how i am investing in cryptos very quickly i am putting in five to ten percent of my capital right now in cryptos and over time i'll bump it up to twenty percent of my portfolio this is a thing that i've said consistently but people give really weird responses that you actually are promoting cryptos this that now very recently i posted something around cryptos which outlined the fact that how the indian rupee is getting depreciated in terms of usd and how usd is getting eroded in bitcoins which is a cryptocurrency i put that i asked people that hey you should consider diversification because crypto is a good asset class you could possibly consider it and people went berserk now here is a comment read it have fun with it that i am promoting dark currencies now of course i am lost for response when people start calling me lord voldemort what am i supposed to do with that but along the way there were a lot of thoughtful comments and some acerbic too so i'll pick these comments and i will have a conversation around it so that you get more clarity about this entire crypto space the asset class and you can juxtapose and compare it with other asset classes as well when i say the word asset classes it means asset class would be stocks mutual funds these are asset classes of their own it could be fds it could be real estate investments it could be cryptos so these are different different asset classes that we have so it's useful for us to at least understand all these different asset classes just to give you a very quick example that i am very bearish in terms of buying a house especially as an investment i do not consider it to be a viable investment i do not believe in that asset class it does not mean that i do not learn or educate myself about the housing market because one day it might change and it might open up new avenues for me to invest become rich from it so what's wrong in terms of learning about it so please take this video with that spirit and a couple of very quick disclaimers number one this is not an investment advice i am not saying that go and invest all your money in crypto currencies or even 5 or 10 percent the way i transparently talk about and share my strategies of investing in stock markets and different asset classes i'm doing the same with cryptos that's it right if you want follow it if you don't want please don't follow it but at the end of the day this is your responsibility to educate yourself by hearing different viewpoints and forming your own analysis second this is not a criticism video for commenters and hitters and spammers they have their viewpoint i respect it it's fine but sometimes people can get really acidic so i might take a little bit of big on them during this video please consider it to be a banter right do not consider it is that i'm trying to prove my viewpoint only or i'm not listening to the other side i'll explain you my analysis on this and then feel free to pick a side okay so what is the controversy about so this is a post that i made and i essentially said that the inr is losing value when compared to usd and usd as an asset class is losing value in terms of bitcoins why did i pick bitcoins because it is usually said that bitcoin is like digital gold so essentially in the past all these currencies be at us dollars inr they used to be gold backed currencies and in 1971 when president nixon did this gold standard pegging we moved to a free float system where the governments now have the power to print infinite amount of currencies so this post was written from that context and the viewpoint was that as an investor what you should be doing my point of view on that was that you should be investing in different asset classes and you should consider cryptos as a viable investment class bitcoin prices are rising up and bitcoin has been in existence for the last eight years now so we are not talking about some weird going here which has just gotten launched bitcoin has been in existence and there has been a general upward trending line on bitcoins so this is the graph you can take a look at the increasing prices of bitcoins okay so let's get started and let's look at some of the comments so the first comment come from derek so this person was on a commenting spree and had to finally block him for the simple fact that he was getting very personal and making personal accusation attacks and what not so let me take one of his questions and let me try to answer it so he says that try manipulating penny stocks listed on nse and bse the way you do for cryptos okay all right so penny stocks get manipulated in india and lot of people make money okay i'll not say anything more than that but penny stocks get manipulated all the time i'm avoiding giving you specific brands but there have been a very recent brand i've spoken about it on my earlier videos where a big investor in india made a lot of money by taking advantage of that merger so put the answer in the comment box which company i'm speaking about yeah boy so you have a lot to gain from putting such posts which are edited by smart people okay now start accepting the other idea sponsored by crypto platforms i have said it earlier that i support world for the simple fact that i myself am a user of world the first time i invested one lakh rupees and showed live investment on wall people started saying that you know what vault must have paid you then i showed it the week after that then i kept showing that live investment week after weeks when these type of comments stopped that world was putting money in your account and finally people started resorting to that you're promoting brands okay please try to understand this that hey if you go and check my earlier videos on cryptocurrencies literally the first video hey i have always been a believer on crypto currencies those videos were not sponsored by anyone that's it b i advocate brands that i personally use am i not using vault and am i just telling you to use it and myself i'm putting money somewhere else that would have been wrong i myself use it therefore i share it with my audience whichever branch i am using so all these things are already disclosed if you feel otherwise please go and watch my previous videos okay so let's take further heat to what the person is saying okay so also show your idea return and show some solid proof of how much your net worth is in cryptos you have the guts okay so i do have the guts to shoot this video now i'm not willing to disclose publicly what is my net asset net worth this is that i keep showing periodically how much i am investing and i keep on showing live investment that's the best and the most transparent thing that i can do if you know any other youtuber or any other person who is doing the same who is showing live investments who is disclosing amount that that person is investing in a particular asset you let me know if you can find more transparency than this of course i'm not going to disclose like 100 of whatever i own that does not make any sense and that's not even useful for you what i can do is that i can be transparent i'm not just saying that you know what i use like this particular platform i just advocate it and go away i'm advocating the same platform that i use that is as transparent that anyone could get that is the best i can say i know that you would not agree but honestly in the interest of transparency this is the best that i could do okay and just a very quick note that this particular post that i am talking about it was not sponsored by anyone go and read it if you can find a sponsor please tell me it was not a sponsored post i was honestly telling you rationale and reason behind it and i'll explain that point also in a minute okay let's move on let's move on to the second critic okay so prithvi says that's ridiculous dude blockchain as a technology has a lot of pros okay fine but comparing crypto with the nation's currency is laughable probably okay you claim to be an expert please explain if these cryptos have any fundamentals [Music] now i'm not sure what to say to this i made like an entire free course for you to watch where i explained the fundamentals of cryptocurrency even some of my videos are titled that please google it you yourself will understand all the points but if you're a new viewer to this channel let me quickly recap now what is the value of cryptocurrencies now first and foremost there are multiple sorts of cryptocurrencies the way that there are good stocks and bad stocks similarly there are good cryptos and bad cryptos again i have hand-picked literally hand-picked only a few cryptocurrencies that i invest my money in and i advocate doing the same for you also i'm not advocating weird cryptocurrencies anytime you tell me if i have done that okay so coming back to the topic so what value are cryptocurrencies adding number one many cryptocurrencies for example bitcoin are decentralized right decentralized for example bitcoin has a limited supply of 21 million bitcoins that's it now how is this useful the utility is that governments for example us government or indian government they have power to print infinite amount of money now imagine a situation where you have 1 000 rupees you keep it in a bank account right then 2020 like karuna virus situation hits this money is sitting in your bank account right and nothing is happening to it now the government decides that you know what we are going to increase the money supply in india from let's say x to 5 x right now citrus parables all things equal what happens to this 1000 rupee it gets deflated in value clear and simple this is such common sense and this is what decentralization means that there is no central mechanism that dictates or politicians who dictate that okay this is the amount of cryptocurrencies that you must flush into the economy it doesn't work that way these mathematical models are already there now let me ask you a question here to critics why do you think that we moved away from the gold standard right why what was the need everything was going well there was some backing to cryptocurrencies gold standard was being used why we had to move away from that standard give me an honest response right and that is the gap that something like bitcoin is filling that is the utility of a decentralized currency now what is the second key functionality or utility of cryptocurrencies it is the blockchain network now because you might ask me that okay this is very new to me i understand that okay decentralization no one is controlling it so it is good that people can't arbitrarily release more cryptocurrencies but who controls cryptocurrencies so it is controlled by a blockchain network so for example ethereum garden or bitcoin they are all based on a blockchain technology the math adds up right coming back to this question of gold standard in gold standard also mac added up why because you can't extract all the gold in the world in like one year and print like infinite amount of currency that can't be done there is only limited supply of gold that gold releases into the economy so to say at a very limited pace therefore because the fiat currencies were pegged to gold therefore you could print only certain amount of currency every year that system was discarded therefore the value of this thousand bucks that is sitting in your bank account it keeps on going down so that is the second key thing right third is something called as smart contracts right smart contracts okay now this is very interesting now a lot of people commented that you know what jamie dimon who is the ceo of jp morgan chase he is against crypto currencies personally but his bank is investing in cryptocurrencies why is that do you know more stuff than jamie dimon no i don't he's financially very savvy i'm not but here is the point who do you think makes money by being a middleman in the world give me an honest answer it's the investment banks what does jp morgan does jpmorgan is one of the biggest investment banks in the world and whenever an ipo is getting launched whenever a big party transfer gets launched whenever mergers and acquisition happens all this stuff what happens in that jp morgan acts as a middle man they get a lot of money now if the financial systems are getting disrupted of course they are going to say bad stuff about a financial system that can literally kill some of the key businesses of investment banks that is the primary point why can't jimmy diamond completely disregard bitcoins since he was so against why did his bank started investing in cryptocurrencies again i'll give you the reason the reason is that jp morgan is one of the many investment banks it's a race to the top something called as d5 decentralized finance is already happening because of cryptocurrencies now out of jpmorgan chase morgan stanley a bunch of different banks whoever becomes a specialist in this domain they are going to rise to the top so do you really think that jp morgan is going to give up on this new innovative technology that is the reason why jamie dimon himself does not believe in bitcoins and cryptocurrencies but his bank does so anyways the scope of this video is not to explain you the intrinsic value of cryptocurrencies i have made a separate video on that you can go and watch it but i hope it helps you understand that by using cryptocurrencies many good cryptocurrencies can cut out the middlemen like investment banks like real estate agents for example if you have to buy a house from me you will have to pay stamp duty you will have to hire a realtor right or a middleman or a broker to broker that deal you don't need that in the smart contract technology so please read about these basic things super important for you to understand it if you don't understand these things you will always keep on imagining that you know what this new instrument is coming and it has no value you'll be like a dinosaur who does not understand that the world is getting innovative and you don't know anything happening around that innovation okay so please read about it i'm not saying go invest money but at least understand the technology and don't make arguments like that cryptocurrencies have no intrinsic value do you really think that it became like a two trillion dollar asset having no value at all another key important related point lot of people were giving me the example of yourself you know what this qlip media happened and it has a lot of parallels with bitcoins and cryptocurrencies okay first and foremost look at the size of the tulip bubble that's one you know about the tulip bubble because of the asset price inflation no one ever talked about the utility of tulips now here you have white papers after white paper being published on cryptocurrencies different different types for example read about cardano how they are working with the governments to solve actual real world on ground problems read about ethereum how it's actuating smart contract technology there are bunch of good things happening in the crypto space just because you don't understand it you start comparing it to like crocs or you start comparing it to pet rocks you start comparing it to tulip mania those were speculations you have to understand the difference between speculation and when something holds value there are concrete basis to having something value let me ask you another question right and i would love if crypto critics can answer this one simple question one simple question blockchain has been there for years right crypto currencies came in later but blockchain used to be there for years now why is it that blockchain has started gaining so much prominence now it is because of cryptos because crypto for example bitcoin it ensured a mechanism to tokenize and incentivize people to come on a blockchain network and start using it that is how you build a user base so that is the prime utility of cryptocurrencies you honestly tell me did you hear about blockchain before cryptocurrencies came in if the answer is yes then okay you must be very well read but majority of the people 1995 people would have heard of blockchain because of cryptocurrencies not the other way around and that itself signifies some value okay now comes the third question where people start questioning my integrity and honesty and all that so this is the question from sridevi and she categorically says if not for this bulldog you have been exposed of your flawed stocks and macroeconomic analysis blah blah okay all right so this person has commented a lot and i don't know the fascination between like bulran and bran and people just assume that you only make money in bull run and somehow i knew that market is going to come back and i only invest money in bull runs let me first and foremost tell you this is my trade book from zeruda account i just took a snapshot and this was the period when market was following so this was march april may june you can see the dates also that the market started correcting from march onwards and it kept on correcting so you can see on respective days i have purchased stocks almost every single day whatever money i was making i was putting it in a bear market also and now i'm sitting on massive profits some stocks have given me 150 profit why because i invested in a beer market also so technically i made money in a beer market now bull run is continuing i'm still making money from it touchwood so please stop with this senseless belief that people who are doing well in the stock market they are only making money because bull run is continuing do you really think that someone is that genius that they would accurately predict that you know what okay beer run has done all the fall has happened now bull run will happen we will start investing now this particular date on 15th of october and we will continue for the next five years no it doesn't work that way no one can predict the market that way so anyone who is making money in the stock market they would have been investing both in bull run and beer run and guess what they are going to continue to do that now there is another completely flawed concept that people have that you always make money by investing in index fund now of course this requires more complex conversation but let me give you a very quick summary of this so this is the video that i made about the u.s stocks i categorically said that the s p 500 is going to correct why because fang stocks the top five stocks for the us market they have a market cap of 20 to 25 percent of s p 500 guess what facebook has corrected since i have made that video facebook has roughly corrected by 15 all the fang stocks are corrected by a lot so if you are an investor in index you would have lost money that's a you should not do index investing all the time i'll probably make another video explaining index funds but the bottom line is that this narrative i don't know how it comes into the picture if you really think that you're not just okay put money in index it used to work in the past now it's not working especially in a high inflation driven market where the companies are over valued index is getting more and more concentrated this is a very risky strategy now let me talk about indian index also for example nifty 50 is an index now you tell me out of those 50 companies which 15 companies have made consistent returns you tell me right so you type out your answer in the comment box i will read it i'll give you feedback but the bottom line is that index investing used to be very good and it's probably good also still i'm not saying anything against it but all i'm simply trying to tell you is that there is a lot of risk involved in index investing also so you need to make index investments in association or conjunction with the market dynamics okay now comes a very interesting question this is by vijay hayaksha is trying to promote cryptocurrency i'm not trying to promote anything i work with only one single brand on cryptos why because i myself use that and i've been advocating that that's it right and that post was not even sponsored okay so diversifying into asset classes which are highly speculative makes no sense okay can you take a look at g1 small finance and tell me by how much percentage did it fall let's say b can you take a look at jp power and tell me in the last one month how much it has risen so do you think volatility is not there in indian stocks it is right it is and this i'm not hand picking cases i can show you examples of small case mid cap stocks which have corrected by 78 also take a look at 2020 covet prices why did a stock like bajaj finance correct by 60 60 so just because some asset has volatility does not mean that it is a bad asset bajaj finance came back and it is making new highs now now you could have disregarded a stock like bajaj finance saying that you know what this is a highly volatile stock it corrected by 60 it's madness to invest your money in it it is senseless it does not make any sense the reason why cryptos move so vigorously they are highly volatile instrument they are risky i have never said that cryptos are not risky cryptos are risky but what is the logic behind it crypto market is like this big it has 2 trillion of market cap stock market is like this big it is huge so of course in a small market it is going to move a lot that is what the concept of volatility is that's a b if you take a look at this chart or bitcoin what do you see prices generally overall have gone up and up and up for bitcoin so volatility is not downward for a good cryptocurrency so that's the point that i will leave you with okay so the next question comes from nikon she has given a lot of rational arguments around usd inr how the fluctuation happens have taught us a lot of economics this is a very well thought out comment really respected and i would love to engage on these type of conversations and his entire post has been summarized so to say by makrant right who's a cfa i assume so let me read that out and then let me explain you the rationale behind it okay so akshat crypto prices has nothing to do with inr usd movement okay exchange rates are based on interest rate parity and he explained a lot of things okay now let me give you like a logical viewpoint and let me ask you a very simple question okay very very simple question let's say that you have 100 rupees right and you have three options one is that you can go and keep these hundred rupees in inr format only right or you can take like a usd whatever like 1.5 dollars worth right because usd is almost 70 rupees so we'll assume it to be usd or you can buy some bitcoins out of it so which option should you execute and why so that was the simple point that i wanted to convey from my post why because i was writing that post from a retail investor and money making point of view i was not trying to explain macroeconomics there now history tells us that the inr is going down and down and down if you read a little bit of forecast you will understand that next year right now inr is trading at 75 rupees to a dollar next year it is approximated that inr will go to 80 rupees now since the inr is getting devalued because you can buy more of inr by putting in a dollar right now with one dollar you can buy 75 rupees by the year end or next year you will be able to buy 80 rupees from one us dollar so what is happening to your currency if you are keeping it in inr is that a good idea the answer is no logic tells us right usd okay fine now compare usd to bitcoin which is getting deflated same comparison the way i was doing so you tell me like all this comparison you have done but if you have 100 rupees to keep in which currency will you keep it and this is specially true in a high inflationary environment and that is the intent with which this entire thing was written yes you can teach me a lot of macroeconomics and i completely agree with all those points but just simply give me an answer to this question you are 100 rupees go and put it in a bank and see it deplete by next year that is a simple point if you go and keep that in usd again you will lose money in comparison to the bitcoin and of course this is not a comprehensive answer but at least it gives you a framework to think about how interest rate inflation interact with each other you have to factor those things also but given the high inflationary environment right now it makes sense to diversify your holdings into other assets also now you would say okay or not you are just hand picking things why is it that you're talking about inr and usd also can you give some other examples okay so this is how crypto currencies are getting absorbed across the world for example take a case of turkey why is it that cryptocurrencies have found such high acceptance in turkey the reason is very simple because their currency is destabilized why is cryptocurrency is finding so much traction in countries like lebanon or in african countries because their inherent economy is weaker so whenever any country's economy starts to weaken and this happens with emerging economies very very quickly people in those countries they start adopting alternate forms of currencies otherwise you will get into a situation like lebanon there is a post that i did on instagram i'll link it in my description box also you can read about the lebanon currency crisis you will understand why the crypto adoption there has been high now then i start getting some weird comments like from christian guaranty later okay guaranteed my stock investments are safe for my inr is safe if you take guarantee of my inaudibles what bottom line keeping these type of blame logics aside if you're looking for guarantees please go and invest your money in an fd this stock market crypto market all this is not for you right please do not do that if you're looking for guarantees of return it will never happen you have to do cost benefit analysis why is it that you will be getting like 50 return on your fd why because you are not taking any risk if you take risk only then you will make money similarly assume that if i go outside my house i might get hit by a car so i will never even walk outside my house then you can continue to live your life that way right so i hope you get the sentiment this is not a criticism but very wrong way of approaching things that you know you should be taking guarantees because you're talking about cryptos no i'm not saying that i'm just telling you my strategy of what i am doing you feel free to incorporate that or discard that then i also get super weird comments now this is a comment by ram prakash he says that but recently mohan bhagwat said that he didn't believe in cryptocurrency and we all know bjp can't go against rss if 2024 ruling party changes then there will be some scope of regulation by the indian government okay now i can't comment on one bhagavat and i can't comment on sadhvi pragya and then i can't comment on yogi adipina's views on cryptocurrencies it's impossible for me to do it i'm not criticizing bjp i'm not an apolitical person i don't care about it but of course please don't ask for my views on like what bjp is doing but important question is that hey how will the regulation play out so two things that you need to understand one is that government makes money from cryptocurrencies because whatever gains that you're making from crypto currencies they are classified as capital gains and you will have to pay taxes on it so government is making taxes from crypto currencies that's it second will they regulate it will they ban it it depends on so many things for example who the leader is what do they care about you have leaders like robert mugabe who looted the entire country so i don't know who will be running india in a few years time what will they do but simple argument here is that's it number one indian government is already making a lot of money from cryptocurrencies b if you try to stop technology how will you do it it will manifest in some way or the other there are benefits to blockchain technology the most likely outcome and this is something that i've spoken on my earlier videos also that cryptocurrencies an existing form of currencies will coexist it's not a war that only crypto will win or only usd will win or inr will win for example right now you have usd chinese remnant you have japanese yen all are co existing right similarly crypto might also exist with them that's the way i see it that's the story that i am choosing to believe in you need to take and form your own narrative and accordingly take bets or not take bits now comes the final point around electricity and money laundering so i got a lot of comments around these things that cryptos use a lot of electricity right cryptos use a lot of electricity because different crypto blockchain networks were using something called as pow proof of work now they are switching to proof of stake now this is beyond the scope of this video for me to explain the difference between these two things but consider it to be a technical switch right now when this switch happens the electricity that is consumed within these networks will come down so that's one that's a part of evolution it's like saying that back in the 1900s some automobile used to give a mileage of three kilometers per liter now you have cars that might be giving 25 kilometers per liter so development will happen in this space also let's say we people are saying that hey this is like corrupt promotes like terror financing this that okay every technology has positives and negatives but few key points it's not as if that crime is not happening in the world it's very sad to see that that's a human problem that's not a currency problem right we need to be clear about that you can't squarely blame it on the fact that because cryptocurrencies are there therefore crime is there that's incorrect ibrahim existed isis existed saddam hussein existed before cryptocurrencies came in and they were bad people and organizations it's not as if that terror financing is happening because of cryptocurrencies that say it's a human problem it requires a different solution altogether it has nothing to do with that around environment another important point that when you print nodes don't you think that trees get cut there has been hardly any improvement on this front so bottom line is that cryptocurrencies are not perfect there are some problems with cryptocurrencies from an environment point of view and bunch of different different things but you need to do pro and con analysis especially of such a big thing for example if you talk about internet do you think internet is perfect there are so much negative things on the internet people are getting bullied lot of bad things happening so should we ban internet similarly what about atomic bomb should we run atomic bombs also why are countries and governments developing nuclear warheads and nuclear weapons there is no debate to technology from that angle so i hope you understand the sentiments and in summary what i am simply trying to say is that number one you should stay diversified within different asset classes if you don't believe in cryptocurrencies don't invest no problem diversify within some other asset classes that you think of number two please don't assume that cryptocurrency is fluff and please stop with that nonsense it is completely incorrect that you are still calling cryptocurrencies as fluff it just simply shows that you have taken no efforts to read about this third and finally you need to develop your own investment strategy please don't go by what i am telling or someone else is telling my goal is to share my investments and strategies with you you need to build your own investment thesis i hope you enjoyed the video please give it a thumbs up and i'll see you the next time you

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