The impermanence of things is something we so often talk about. The Stoics have the strategy of indifference to tackle a scenario where something bad, unexpected and unprecedented comes up. It is a herculean task trying to predict the future and what we cherish can quickly be lost.
The research is there on how much financial shocks can damage an individual. An unexpected financial loss can cause serious psychological damage to an individual, translating to more physical damage. Health issues such as stress and depression linked to a financial fallout can lead to many medical problems that are well documented.
It is no wonder that people are so frantic about protecting their wealth and growing their asset base. Anyone who was previously relaxed about this got a rude awakening during the Covid pandemic of how quickly things can change and an economy can be brought to its knees.
There is a danger with being too comfortable about ones current position. This often arises because we have not fully reflected on the position itself and how we can quickly be knocked off it. Many don't even feel like we can be knocked off position. It is easy to feel invincible when the going is good, but the real test comes when it is suddenly taken away.
The typical, traditional person had to train, work hard at their job and slowly climb to the top. Accomplishments usually start to come in the later years so it wasn't like such a person didn't go through the fundamentals to become wealthy. Yet with all the character built over time, a scenario where that means of livelihood is suddenly taken away by loss of job, legislation, illness, etcetera - will still be devastating.
How much more these days when random people are stumbling into wealth through crypto. Crypto has probably made more random people richer than gambling despite only being a decade old. Those who do find early success are not immune from the possibility of loss. Many get carried away and find themselves in a really dark place.
Building on a solid foundation is as mental as it is physical. Knowing that loss can happen but still be willing to rebuild is as solid a foundation as a physical one. Of course we shouldn't also discount the steps it takes to prevent loss from occurring. Those of us in the space have learned the art of patience and perseverance, which is as solid a foundation as anyone would hope for.
The crypto space itself is a pretty solid physical foundation, but we still need to look deeper beyond the surface to find true success. The same goes for our mindset, as there is a development that comes with the ability to go through ups and downs.
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