The author of the article Chris Douthit analyst, entrepreneur and head CryptoInvestingInsider.com. Chris had a great analogy between the epoch of the rise of John D. Rockefeller and the period of adoption of the cryptocurrency.
Someone once told me that to repeat the same thing over and over again, expecting a different result, is madness. But what about those who repeatedly misses opportunities?
This story began back in 1863 when it was built the first railroad between the rich oil-producing region of Pennsylvania and refineries in Cleveland. More than a hundred miles separated the two cities, and why Cleveland was in a worse position than Pittsburgh or Baltimore. However, the key benefits of Cleveland was is the low cost of land and resources.
That’s why John D. Rockefeller and his business partner, Maurice Clark, decided to invest in the Cleveland refining industry, assuming that you can play on the price difference compared to other oil regions. Low production costs have enabled Rockefeller to gain an advantage over other enterprises in the country and continuously improve and develop their company.
The relationship between the two partners remained good until 1865, until one day between the Rockefeller and Clark did not have any disagreements about debt. Rockefeller at the time was only 26 years old, but he was able to negotiate with Clark and to buy his share in the company 72 $ 500, which was much higher than the actual market value. The absence of Clark’s patience and vision that led to his retirement from the oil industry, cost him more than he could imagine.
Over the next five years Rockefeller brought the art of refining to a whole new level, producing 1,500 barrels a day, which is more than most competitors could produce for the week, and even at a much lower price. Subsequently, the company will be renamed Rockefeller in Standard Oil Company of Ohio and will be the largest Corporation that ever existed.
Maybe Clark was happy with my deal, but fabulous wealth, which he lost due to a too early exit from the industry, has become one of the biggest financial mistakes in American history. Most people probably never even heard of Maurice Clark, while the story of John D. Rockefeller taught in every business school in America.
There are an infinite number of so-called “experts” have their own opinions on the matter. Their recommendations range from the futility of crypto-currencies before the award of the title of a revolutionary tool that will lead society in a fair and bright future.
Charlie Munger, one of the best financial minds of our time, has called Bitcoin “useless artificial gold”.
Warren Buffett in a fit of hatred to Bitcoins, said:
“Buying assets that do not produce anything, you can count only on what will come people who will pay more, because I am sure that it will be followed by other investors”
Is Buffett doesn’t understand technology and that can make the blockchain?
It reminds me of the old refineries, the owners of which could not see the future only because I don’t understand how technology and a more ambitious approach to legacy mode of production is able to enrich them.
No one knows for sure what will happen in the coming years, but history is one of the best tools to predict the future.
Things tend to change, new and better ways to achieve our production goals are being developed everywhere. It is through the development and commitment to the changes we are where we are today. Some people are able to recognize and take advantage of the changes, while others allow opportunities to pass them.
John D. Rockefeller was a young thinker, he broke the old ways of doing things in the oil business, which allowed him to become the richest person in history, who took control of 90% of oil in the United States. In today’s numbers, his condition would have amounted to 367 billion dollars.
Henry Ford founded the Food Motor Company, the company has revolutionized the automotive industry. At that time, many believed that a car is a luxury available only to the wealthy and just don’t believe what you did in the Ford. But over a period of 17 years (1903-1920), Henry Ford sold over a million cars, which made him and his investors of the company fabulously wealthy. The era of horse riding tours came to an end, and investors who believed in the idea of a Ford, get rich. Not surprisingly, in today’s dollars the condition of Ford at the time of death was estimated at more than 200 billion
The Internet boom of the 90 years also gave rise to several billionaires. I remember conversations about whether the Internet is just a fad or is it here to stay. Most people simply did not know what to do, and decided not to take the risk to invest.
Technological revolutions don’t happen overnight, it took years. Bill gates didn’t miss their chance to take advantage of the situation, and in 1999, his fortune exceeded 101 billion (144 billion at current prices).
It’s hard not to draw Parallels with the cryptocurrency — it all comes down to innovation and adoption, both of these factors are rapidly evolving in this industry.
If you think you are already late with the investment, think again. Of the 7.6 billion people on the planet, only 25 million have a bitcoin wallet. This means that currently only 0.3% of the population owns bitcoins. We are only at the beginning.
When it comes to technology, the situation can change quickly, and in five years the world will look completely different. You can stand on the sidelines and watch or jump on the train and to prepare for the trip.
Think of the Maurice Clark, who just waited for change.
Changes occur again, they are happening right now. Of course, this does not mean that you can just buy any bitcoin and get rich. The greater part of the cryptocurrency is destined to disappear, so creating the right diversified basket is still the key to success.
You have to ask yourself who you want to be in 10 years — a man who gave up too early and all sold (or not owned at all) or a person who was strong enough to withstand the storm, a man who used one of the rare opportunities that life gives us?