Journalled on Tuesday, 3 October 2023 | Flamengo, Rio de Janeiro: 25 degrees, warmish, sunny and slightly overcast.
It is hot, humid, and cloudy. I took Perola for a walk and did some exercise early. It is trying to rain, but it is not raining.
Thursdays have the most classes, especially in the afternoon, when I have a presential class with Dona Vera in Copacabana. I enjoy going there. She has been very good to Yasmin and me; she is a special person.
Now that she is getting older and her health is a little fragile, it is good to know that my classes help her. She has told me that the classes improve her daily life, and she always looks forward to my classes on Tuesdays and Thursdays.
While in Copacabana, I stopped by to visit an old flame who owns a shop. I am friends with her and the girls who work there. I really enjoy their energy and company. I always feel comfortable and at ease when I visit. They are simple but genuinely kind, generous, and extremely hardworking; I admire them.
Sometimes when I visit, I bring chocolates, which they love. Women really adore chocolate. I believe women love it more than men. I even think that if given the choice, they could easily do without men, but chocolate? Never. They usually make coffee, and we have a laugh and a joke.
I enjoy having conversations, sharing gossip, and laughing with them and others. I like to provoke them and others. I like to prompt my pupils to think and speak in English, both in class and in their relationships. I naturally provoke people because harmless provocation leads to deeper thinking, often resulting in greater understanding.
For some reason, we got onto the topic of cryptocurrency today. I recently opened an online bank account and have been buying cryptocurrency for about two months.
I also opened a savings account last month, but these days, a savings account does not help your money grow; it just keeps pace with inflation. People often talk about stocks and shares, but it is not the right time to do so, especially in a country like Brazil, where the future is uncertain.
In a country like Brazil, the government could suddenly change a law. This change could significantly affect an industry or sector in which you may have invested. A previously profitable company could suddenly find itself at a disadvantage due to government action. This lack of stability can lead to financial losses and make it difficult to compete in the market.
A country needs judicial and economic stability, which Brazil currently lacks. Despite Brazil’s large market of over 200 million people, the unpredictability of government decisions can pose a significant risk to investors.
Lastly, cryptocurrency. I have had ups and downs in my understanding of cryptocurrency, which is new to me. I have long thought that buying crypto in small amounts and at low prices will not make an enormous difference to your overall portfolio or your day-to-day budget. If crypto plunges, you will not feel it so much. If it goes up, then it is all profit and good.
Warren Buffett has repeatedly stated that he believes crypto is worthless because it does not create anything of value. He argues that its value is determined only by the next person willing to buy it.
If others are willing to pay more than you paid, that is good. However, if there are no buyers, the value will drop, and you will lose money. In essence, it is a buyer’s market: if there are buyers, it is good; if there are not, it is a problem.
Crypto was created as an international currency without geographical boundaries, free from government influence and manipulation. Whether this is true, I am not entirely sure.
However, the world is in utter chaos at the moment, with many imbeciles running countries and our societies in general. There is set to be another Great Recession, greater than anything before, in the next couple of years.
If this is true and there is going to be a massive world economic recession, with mega economies and companies going to the wall, then people will probably migrate to crypto to guarantee the value of their money. In any part of the world, they are.
If my theory is correct, that would be great. However, if not, the final cost might be high for me and anyone else. I am currently buying R$5.00 or R$10.00 worth of cryptocurrency daily, or whenever I receive a payment. I buy small amounts of cryptocurrency to avoid affecting my daily budget.
If the value goes down, the loss will not dent my financial situation because the amounts were so small. However, these small investments, accumulated over time, could become significant if they are valued and appreciated in the future.
My advice if you want to invest in crypto is to regularly buy small amounts of cryptocurrency that will not significantly affect your budget. If the cryptocurrency’s value increases in the future, it will be a sound investment. On the other hand, if the value decreases, because you have only invested small amounts, it will not significantly affect your budget or finances.
This is my simple economic investment tip, for whatever it’s worth.
In bed by 9.30 pm.
Thank you.
Thanks for reading this blog post. Please explore my other posts and share your thoughts in the comments section.
Richard
