Kim Hyon-jeong, a 45-year-old teacher and mother of one who lives on the outskirts of Seoul, said she put about 100 million won, or US$90,000, into cryptocurrencies last fall. She drew on savings, an insurance policy and a US$25,000 loan. Her investments are now down about 90 per cent.
Over the years, I've talked to many Canadians who wanted to "invest" in crypto or an explosive penny stock. The common element is always their microscopic time horizon. They want to get rich tomorrow! One guy uttered this memorable statement: I will only invest in a stock if I think it'll go up by 50% in the next year.
Most people don't have the personality to delay gratification and save money. What's sad is that the many who do, end up going YOLO for lottery tickets or going FOMO on the latest get rich stock or scheme.
Building wealth is an excruciatingly slow process for the average person. Trying to do it in a few days, weeks or months usually ends in tears.