Bankless 137 - The Psychology of Crypto with Morgan Housel
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Sep 19, 2022 
In this discussion, Morgan Housel, a partner at Collaborative Fund and author of "The Psychology of Money," shares profound insights on the interplay between psychology and investing. He highlights that crypto investing isn't unique, but rather a reflection of timeless human behaviors like greed and fear. Morgan emphasizes the importance of understanding volatility and maintaining a healthy relationship with money. He also touches on the power of compounding and the idea of 'having enough' for true happiness, providing invaluable lessons for both new and seasoned investors.
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Psychology over Savvy
- Good investing is about psychology, not just financial knowledge.
- Mastering greed and fear is more crucial than having a PhD in finance.
Psychology's Impact
- Long-Term Capital Management, with Nobel laureates, went bankrupt due to psychological flaws like overconfidence.
- Conversely, people with no financial education can succeed through patience and emotional control.
Crypto's Not Special
- Like all new industries, most crypto projects (90% or more) will likely fail.
- This is normal and not unique to crypto; the key is having the risk tolerance to withstand it.
