This transcript was generated from the episode audio and may contain minor errors.
Hey there, wherever you are in the world. I hope you are doing well. I hope you're taking care of yourself. I hope you are investing in yourself. I hope you're working on something that will pay off far into the future. Let's say both short term, long term and maybe medium
term as well, right? Like why not leave anything out. Anyway, welcome to Side Hustle School. My name is Chris Guillebeau. Today we're going to talk briefly about decentralized finance.
Is DeFi the future or the past? In the last two years, the world of DeFi has taken off. We've talked about it a couple of times on the podcast in terms of game projects or play to earn video games that you can make money from. Also some protocols you can invest in and receive an incredible return, sometimes 400%, 500%, 1,000% APR or more. But now a crazy thing has happened. What goes up must come down or at least a lot of things that go up come down.
So for everybody out there who's invested in cryptocurrency and DeFi in particular, or if you've just been interested in it, what does it mean to be in a bear market? How can you profit during a time in which everything is down? What can be done? That's what today's listeners wondering about. We're going to hear from him and my answer in just a few seconds.
Stay tuned. Hey Chris, this is Dom from Seattle and I've been following your projects since first reading the $100 startup. You've had a few episodes about decentralized finance known as DeFi. As you probably know, the space has been hit hard in the past few months. Some of the tokens are down more than 95% and even Bitcoin and Ethereum have fallen a lot. So are you still as positive about this
industry? And if so, what are the best ways to profit during a downturn or bear market? Looking forward to what you have to say and thanks. Well, Dom, it is tough. It is tough for sure, especially if you were invested in it, you know, kind of at the peak. So I think like going forward,
you have to decide your risk tolerance. And this is something that I have been evaluating for myself. Because I think DeFi is really cool and interesting. I think it has a ton of potential. It also has some problems. And I think we're kind of seeing DeFi and some cryptocurrency being hit even harder
than a lot of stocks or the tech market or even Bitcoin and Ethereum and such. So you know, one way to look at this is that there are phases and we are now, you know, suddenly or not suddenly, depending on how you look at it, we're now in the building or accumulation phase. And so this is the time in which you can acquire some of these assets at, you know, a really bargain basement price. And hopefully, there's going to be a bull market or a profit taking phase to follow. But of course, that's not guaranteed. So that's why I mentioned risk tolerance. It is a world in which returns
can be really crazy, but also the risks are very real. So it's a high risk, high reward kind of thing. I think it's smart to not put, you know, too much of your money into it, but maybe a little bit, right? So take a bit of an entrepreneurial risk if you're into this kind of thing. But of course, don't invest money you can't afford to lose. Make sure you do your own research and so
on. I will say that one good thing about this, a good thing about this time is that only the best projects are going to make it through, right? So there's going to be like a winnowing. And I think in the peak phase, when so many projects and protocols were coming out, there were a lot that weren't that great. They weren't actually doing anything, but people were putting money in them.
And so it's all kind of imaginary. But now it's like you have to actually have a good project and have real utility. So what you want to do is pay attention. Like where are the standouts? Where are the projects that are actually going to make a difference? Hopefully do something helpful or at
least do something fun. If it's the world of gaming, that's where you want to place your attention. So I'll be following it along with you. Listeners, if you've got a question, sidehustleschool.com slash questions, whatever you're working on, whatever you're trying to accomplish with your side hustle or your business or just your little income generating project, whatever you want to call it, we'll continue to look at all different angles along with updates and listeners as they launch and grow those projects. Thanks for tuning in today.
My name is Chris Guillebeau. This is Side Hustle School. From the Onward Project.
