Who needs lights anyway

in LeoFinance •  5 months ago 

Do you know what ruins a Sunday evening? Getting a bill from an electrician.

Essentially, the entire house needs to get rewired as we are renovating, something we didn't factor into the original estimates - almost every wire is being replaced. The bill itself was for 1 day's work and considering what was done - it made my eyes water a little - the hole we are digging is getting deeper by the day - but we aren't sure if it is for debt, or our graves.

house hive renovation tarazkp.jpg

At times like these, I tend to have a look at my crypto portfolio and do a rough estimate of just how much I am going to "lose" to cover the growing shortfall. Lose is of course not entirely the case, as it would be put into the house - but I am not really keen to use any of it at this point and am still hoping I can cover it all by working my way out of it. This means that I am going to have to do the near impossible and get a little more work through my business over the coming months, which is very hard to come by - but not near impossible is not, impossible.

Tomorrow I will start my campaign and email all my known contacts to see what their current needs are. The Covid Panpanic has meant people (myself included to some degree) have become a little lax and instead of proactively looking to grow, they are coasting and focusing more on maintenance and stemming the flow of loss. This is normal of course, but it is also going to put many on the back foot in comparison to those who rather than retracted, looked to build the best they can. It isn't easy to make investments into high uncertainty, but it is also difficult to compete from a long way behind too.

It is interesting to think what the value of say, 1000€ of fiat earned is or, 1000€ of crypto spent. Yes, 1000 is 1000, but at least in my experience, putting the 1000 into crypto is harder than spending 1000 earned in a job - which means that spending the 1000 in crypto holdings is unlikely to be replaced with a 1000 from earnings later. Not only that, while the fiat will essentially depreciate, the crypto will hopefully/ probably/ most definitely/ fingers crossed/ maybe go up significantly.

So, is the 1000 in cash the same as 1000 in crypto?

Obviously this depends on the person, but for me who is looking to hold as much as I can for as long as I can, they are not. I "protect" my crypto holdings far more than I do my cash holdings because I know that the barrier to put in is higher than my barrier to earn. So, I focus my energy on earning fiat and moving some of it into crypto when I can this way the small stack keeps growing, rather than reducing.

Value is a different story.

Compared to the top of the bullrun, I am well down, even though I have a fair amount more than that time. I am hoping that the modest purchases I have made over the last couple years will mean that the gap will start closing faster, without needing such a run as before. But, I think the next hard push on Bitcoin is going to make some people blush - either at the value of their holdings or, because they chose not to get into bitcoin due to the risk.

There's the whole "fortune favors the bold" adage, but while most people want the fortune, they do not consider themselves bold enough to make the move. My colleagues who have started getting in are doing it right in my opinion - seeing it as a game where they are willing to lose the purchase price. For them, the cost of playing they put in isn't going to hurt them to lose, but the potential gains they get will be a nice little bonus.

A lot of people are negative on risk takers as if it is somehow a "wrong" position, that playing safe is wise. I started questioning this a few years ago after a life of playing safe and getting nowhere I wanted to be and instead, being further back than the expected safe route results. The reason is, uncertainty is always present and even when playing safe, unexpected happens.

The best things in life are free - the worst things carry a heavy cost.

While I know that buying this house was going to run us ragged with work, be expensive and then grow in expense due to surprises of an old property - I do not think that I would have taken "the risk" on it a few years ago, even though my wife and I were in a similar financial position then. And even though, it isn't nearly as risky as it seems, since it is a house on our ow property and we need a place to live anyway - there is always going to be some cost of keeping a roof over head, perhaps why they are called overheads...

So, while the electricians, plumbers and builders are going to get paid well, they will be paid in fiat. How many of them will consider putting some percentage of their income into crypto? Probably none of the ones we have working for us. But, at this stage of the game, those small amounts could add up to nice little income sources or streams over the next decade or so - if willing to take the risk.

Currently, not many people are willing to take the risk, but the number is growing. The more that do, the less risky the move becomes, but the lower the potential gains. As far as I am concerned, I am ahead of the curve as I am here participating, willing to put money into the investment and willing to actively grow it, even if it means doing a little more work so that I don't have to spend it :)

Taraz
[ Gen1: Hive ]

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Oof having to rewire the entire house 😵 we were worried about that when we bought ours. When getting the building insurance one of the standard questions was “is the house over 70 years old” and they always expect no to that because most houses aren’t over 100 like ours is and when I answered yes I got shock, disbelief and an order to get a rewiring certificate from a certified electrician.

The sparky found everything safe (just some stuff done really dodgy as some last occupiers had done a lot of renos on the cheap) so we managed to sidestep that particular cost... for now 😵

I think J is feeling the same pinch as you. We started out aiming to be bold, and then we had kids “early” by current standards which sent him scrambling into “safe mode” and not wanting to even consider anything that might possibly at some stage endanger the white picket fence, and the “well behind despite playing it safe” thing which I’ve been feeling for quite some time really hit home when we were looking for the second home and realised we had exactly the same budget and no real improvement in choice as we had when we bought our current home 🙄

I hope you’re able to work your way out of these shenanigans, good luck with the networking!

And please just use the damn crypto if you find you’re really in a pinch!

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The house I grew up in has super shoddy wiring that was essentially exposed wire (wrapped in cloth) running through the roof beams. it is about 95 years old now.

“well behind despite playing it safe”

I wonder how common this is and how many people are ahead by playing it safe.

realised we had exactly the same budget and no real improvement in choice as we had when we bought our current home

This is one of the worrying things. Once upon a time I used to find that my thoughts weren't changing much either - and I see people on Facebook (when I used it) posting similar content and essentially the same lines year after year - is life so stagnant?

And please just use the damn crypto if you find you’re really in a pinch!

Yeah - I will. Come on pump!! :D

Damn they took even worse shortcuts on your childhood home XD

I wonder how common this is and how many people are ahead by playing it safe.

I think if you could live with your parents with relatively cheap board (or no board if you're particularly lucky or entitled) you could play it safe and get ahead. Otherwise probably need to be have been one of the previous generations and smart.

Damn I knew people didn't like change but that seems a bit extreme O_O

!ENGAGE 20

So. Understand that the following is my opinion and worth exactly what you pay for it. Nothing.

I think if you can put money into crypto without fear of loss (literal disposable income) then you have to be able to take it out under the same rules. With out fear of possible (or even probable) future loss. It has to be disposable both ways for the equation to balance.

I get that you don't want to sell any, and I sincerely hope you don't have to. We both know that you will do anything in your power to keep from it. But you also have to add the current fiat value of your crypto to your mental discussion. It's the only way to see your current position fairly.

Again. My opinion.

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then you have to be able to take it out under the same rules.

This is part of the issue. I have written the fiat off that I put in as a loss, but if I take it out at this point it means I need it, making it not disposable :D

Part of the problem (and benefits) with crypto of course are the fluctuations - it could lose a lot, it could be worth a lot more - it makes it risky to do anything with it.

!ENGAGE 20

there is always going to be some cost of keeping a roof over head, perhaps why they are called overheads...

I know I should be making a serious comment about the state of fiat and crypto but hold on - how good is this line? When I read this, I was smiling wide coz this is so well put. You play with words nicely.

Okay, the real deal. We are influenced by things that you spend most of your time with. I am spending way lot more time in the crypto space. I am echo chambered by investing in crypto and has been doing that for the last two months. Hope I can continue that and hope the value in the future will prove that decision right.

Good luck with the work to cover that extra cost. Ask them if they accept $hive :)

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Crypto has a lot of echo chamber going on, but it seems that more a joining into the fray of it, as other areas of life become more uncertain. When people are exposed to a lot of uncertainty and survive, they are perhaps more likely to seek for some risk.

Ask them if they accept $hive :)

One day they will - I hope I have some left by then ;)

I agree. Also, it seems that people see there's quick profit in the sector and want to be exposed. Who does not love quick money? Once they are in, they will realize pretty quickly that crypto assets are like any other assets that require time to appreciate.

!ENGAGE 20

A positive view on an otherwise difficult situation. It's tough to keep those crypto's safe while the FIAT life is pulling so hard at you, but like you, I'm keeping mine too - and have been lucky to add some FIAT the last few months thanks to work that came by 'thanks to' Corona. Let's see - shall I set up some recurring small buys of BTC while it's still worth doing so from my next pay check? :D

Fingers crossed for some work from your contacts!

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It is nice that Corona is working out for some people at least!

I haven't been able to buy for a little while so I am jealous of those who can :D

!ENGAGE 20

I like reading your work, Taraz, because you my friend, do what people like to call, 'keep it a buck'. You're very candid about the nature of reality and for some, it can be morbid, but you add your individual fun to make it macabre. It could still be dark, like this here black kid, but that doesn't mean it's not beautiful, another descriptor of myself. Sometimes people mistake this certainty for confidence, but I'm starting to realize it might just be nicely put acknowledgements. I hate to cash out so I can cash in, but many like you mentioned, rather cash in then out. That's why they don't participate, which is cool, cuz I will - maybe while I inform a select few. Hope you're enjoying Sunday, even if some other things cropped up today.

it can be morbid, but you add your individual fun to make it macabre

If you can't be amused by the darkness of life, you're in for a bad time :)

Who knows how everything will pan out, but life is more interesting pushing a little each day, than waiting for the inevitable end.

I think the next hard push on Bitcoin is going to make some people blush - either at the value of their holdings or, because they chose not to get into bitcoin due to the risk.

I hope that you are right.

Also I don't think you should look at selling crypto as a loss if you are putting money into your renovation. I'm not to familiar with your real estate market, but in many areas in the USA investing money in your home is an investment. Is it the same for you? If so, you are just investing your crypto into an investment that could realize gains in the future.

Yes, it is an investment (if spent well) here too - and when it comes to the electricals of this old place, there are also some safety issues :) I think the "loss" part in my head is because for so long I have been trying to increase holdings, that the thought of taking them out doesn't feel good. Not the end of the world of course.

Yeah. Either way I think you are increasing your net-worth. It's just a matter of at what rate and risk level.

Better to put the money into your home than in a car, or some other useless consumer good.

Spend your way out of debt, work your way out of debt, or save your way out of debt. If things get supper tight, you have the savings and will use it I am sure. If you can work your way out, I think that is possibly the best solution, so I hope you are able to expand your income a bit.

I cringe each and every time I have to call an electrician to do re-wire work. We had to do a little bit of that at our previous house, and yep, not a cheap thing to get done, but better than a potential future house fire from faulty wiring.

!ENGAGE 25

Is there a "steal your way out of debt" ?

Working my way out is of course my preferred option as I don't mind the work and there are benefits in the process of it, not just the income.

but better than a potential future house fire from faulty wiring.

Yep, this is one of the issues here. It isn't that t is all bad, but it is hard to know what is good.

Sorry to hear of your troubles, home ownership can be a pain some days And a blessing others. We have had our share of unexpected financial pitfall but nothing like your going through. Best of luck finding extra work so you don't have to dip into your crypto.

We weren't expecting the wiring to be so bad, but they literally stripped the entire upper floor of wiring and replaced them. The downstairs will come later. At the end of the day though, once done, it is done right - and they say if it is something worth doing...

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Looking at investment into crypto as "cost of playing" the game is a very interesting approach! I haven't consciously though of it this way even though I 'preach' to new splinterlands players on an almost daily basis that what they are "investing" in the game is just to play the game for fun. What happens to their holdings 5 years from now should be irrelevant and they should all just have the mentality of having fun. There's no reason to look at HIVE in a similar way too. After all, social media is supposed to be fun. I think I am going to steal your analogy quite often now for new HIVErs!

those small amounts could add up to nice little income sources or streams over the next decade or so

This is very important because as you said, the barrier to entering into crypto is higher. Not many will be able/willing to put fiat into crypto in large amounts because it's not mainstream yet and we still need fiat to pay the bills. But small, insignificant amounts on a regular basis will add up to a pretty significant amount a few years down the line.

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After your story, I began to envy your electrician :)