Crypto Makes Men Into Victims

    There is a phenomenon YouTube channel called "Coffeezilla" dedicated to the uncovering of financial scams. The owner and sole proprietor of the channel makes his living by exposing fraud and interviewing the victims of these scams, in the hopes that we can learn how to better protect our wealth. From all of the scams that Coffeezilla has exposed, I have noticed that the great majority of the victims of these financial scams are young men. This begs the following questions:

• Why do men keep falling for crypto scams?
• Why is Crypto a terrible investment?
• How can we better protect our assets from fraud?

Misguided Masculinity

A Metaphysical Failing

    Many men fall for these crypto scams because they have been fed the lies of modernity. Traditionally, the mark of a man was rooted in both the physical component of his wealth and ability, and the metaphysical component of his values, character and temperament. With the corruption of post-modernism and the introduction of social media, the mark of a man has been reduced simply to his wealth. Young men are no longer expected to be chivalrous, honorable or dutiful, these metaphysical attributes have been deemed vestigial things and cast to the wayside. Increasingly steeped in a culture that reduces their importance to their paycheck and bank account, young men fall for the "financial gurus" selling courses. The complete absence of positive role models and the lack of metaphysical value causes material wealth to take precedent in defining the mark of a man. Thoughts like, "you are not a man if you do not make X amount of money or own Y item or car." and "women won't look your way because you are poor and do not have X amount of capital" prey upon an already disenfranchised and desperate population of young men.

    We are wired to assess ourselves on a socio-dominance hierarchy. Our ability, wealth, and merit are meticulously defined by our subconscious as we naturally compare ourselves with our peers. With the greater influence of social media, our circle of comparison rises precipitously. No longer can we hope to be proud of our accomplishments because our psyche is bombarded with far more successful, fit, and greater individuals than ourselves. After all, how can we be proud of our small apartment and $100 dollar bonus, when there are millionaires out there that are far younger than us living the American Dream.

Wired for Risky Behavior

    Faced with the hopelessness of an unavoidable reality, young men turn to risky behavior in hopes of climbing the now vertical assent to socio-dominance. This is a naturally occurring phenomenon; individuals, especially those in destitute conditions and uncertain environments, are disincentivized to choose slow but less risky options. It is better to enjoy the ride as you "go big or go home" rather than to save and invest, because an uncertain environment might take away your meager belongings at any second. Likewise, risky behavior is often coupled with a dopaminergic kick similar to the effects of drugs and alcohol. This byproduct of risky behavior, combined with the incentivization to seek fast results creates a cocktail for financial disaster.

Crypto: An Online Gold Rush

Asinine Investments

    Crypto is a terrible investment. A good investment is defined by 3 things: growth, stability and liquidity. Most cryptocurrency fails at all three of these markers. Financially, crypto is a nonproductive asset. This means that it does not inherently generate a form of return. Unlike, real estate, REITs, stocks, ETFs and index funds... crypto, does not generate a fiscal return. In this way, crypto is much like other nonproductive assets like gold, and silver. But where silver and gold are valuable because they are not only scares but widely used in electronics and industry, cryptocurrencies are artificially scarce without a real-world use. Cryptocurrency cannot be used to create electronics, further industry or hold inherent value. They are a poor store of wealth and another fiat currency in practice.

    Cryptocurrency is not actually a liquid asset. Liquidity refuses to an assets ability to be turned into cash without losing its store of value. Although cryptocurrency can be turned into cash readily, the lack of stability within the crypto space makes crypto a poor currency. Cash is king for a reason. Cash is highly liquid, lacks volatility and can be exchanged for goods or services without an intermediary.

    In addition to cryptocurrencies' fundamental flaws, crypto also lacks the stability and reliable growth required for a good asset. Crypto Bros will rave about how Bitcoin as an asset is fantastic because of the rate at which it has grown. But an asset that is grown rapidly and then deflates precipitously is a poor place to stake one's money on. Investments are necessary to secure our financial future. That means that those investments must be worth some readily available share of value when we need them decades down the line. Crypto cannot be relied upon as a future investment because of its inherent lack of diversification and its fundamental lack of regulation.

    The interdependent nature of cryptocurrency is a largely undiscussed red flag in the crypto space. Diversification, or the broad allocation of resources across several different markets and investment opportunities, is a very important factor when investing long term. Almost all cryptocurrencies are interdependent on each other. That is because unlike other assets, cryptocurrencies main use as a currency is to exchange their value in between the various other crypto currencies. (Think Forex with even less stability) This means that when the big-name cryptocurrencies are doing well, chances are the entire crypto market is experiencing a bull run. Unfortunately, the opposite holds true, when the big cryptocurrencies are down, chances are the entire market is currently suppressed.  The interdependent nature of cryptocurrencies combined with the lack of regulation makes the entire market a positive feedback loop. Crypto as an investment grows rapidly because of the lack of regulation and interdependence; unfortunately, it is by that same vein, that crypto future is uncertain. This makes crypto a far less valuable asset than an investment that grows slow and steady, with a probably rate of return when it is needed in the future.

 

Online gold and E-prospectors

    The lack of regulation in the crypto space also breeds a bevy of scams and a scarcity of fail safes. Web3 products are the new wild west of the financial market; people flock to hundreds of altcoins, and NFTs in the hopes that their store of value will rise like it did with Bitcoin and Ethereum. For some, their gamble pays off and they are rewarded beyond their wildest dreams, for most however, they lose everything and do it all over again. If this situation wasn't bad enough, there are bad acts in the crypto space. They create crypto currencies that promise amazing innovations and then sell off their currency to gullible investors. These poor saps are then left holding the bag, tens of thousands of their dollars now worthless because their altcoin never had inherent value. Similar to the fake crypto companies that lead in fake proprietary tech, there are also fake crypto day traders who will claim to teach you how to trade crypto successfully for a price. These charlatans take advantage of the lack of regulation to use gullible young men to make a quick buck. After all, when everyone is prospecting for gold, the only one who is guaranteed a profit, is the man selling the shovels.

    Similar to the downright scams, the lack of regulation incentivizes companies to cut corners to turn a profit. Celsius, FTX, Voyager, and a whole slew of other crypto exchanges are bankrupt and have lost all of the capital that their investors have pumped into their pockets. Unlike banks which are FDIC insured, Crypto exchanges lack the necessary protections that help investors recuperate loses in the case of a company's insolvency.

A Reminder of Reality

No Easy Routes Remain

    There is no longer easy paths to wealth and success. Fame in media, social or otherwise is oversaturated. Social and technological innovations are requiring higher degrees of knowledge to fix marginally smaller issues. Anyone or anything promising you wealth, fame, or a guaranteed future is either misinformed or blatantly lying to you. This should not cause despair; it is still possible to achieve great things and earn sustainable wealth. The only difference between pipe dreams of success and the reality of probable earnings is the amount of work and skill required to achieve more. Be smart, be educated and specialize in a career field and chances are if you are fiscally responsible you will be financially stable.

Final Takeaways

    In order to achieve financial stability, you cannot fall for the crypto and investing scams. Don't buy into companies that are promising huge returns for nonproductive assets. Be frugal, do your research, save and invest wisely. Finally, realize that your wealth is not a greatest measure of your masculinity. A man is defined more by the strength of his character and the strength of his resolve than by dollars in a Roth IRA. It is easier to find peace when you have a more wholistic outlook on masculinity and unplug yourself from the toxic interconnected comparisons of social media and modernity. Your primary litmus test of success should not be based on comparing who you are to someone else, it should be comparing who you are now to who you were. Push yourself to be greater man of character, follow simple investment strategies and savings tactics, and eventually; through hard work and personal determination, you will be more, and own more, and be a better man.