The rich become richer and the poor become poorer! This words crossed my mind yesterday when I was trying to invest BNB locked staking on Binance. Not that Binance is for the rich and pushing away the poor, NO! The problems is on us as individuals, how much we are willing to risk versus how much we have. To explain this further, let me use the Markovnikov's rule from my Organic chemistry lectures.
Markovnikov's rule coined by the Russian Chemist Vladimir_Markovnikov in the 1870s simply describes the outcome an addition reaction of alkenes. The rule states that when a polar substance or protic acid (HX) reacts with an asymmetric alkene, the protic acid (HX) will dissociates into H and X components, then the H component goes the carbon with more Hydrogens while the X component goes to the carbon with less hydrogens. In this case, the rich carbon becomes richer of Hydrogen (H) atoms while the other carbon becomes poorer of the hydrogen atoms. An example below is of hydrogen bromide reating with Propene, the favoured product and produced in higher quantities is the one where hydrogen is attached to carbon with more hydrogens (becomes richer) and the X component (Br) to the carbon with less H (becomes poorer). The other product which violate the rule is produced in small to insignificant quantities.
By V8rik (talk). CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=6135213
Now, back to the world of investing. It is easier for a rich investor to make money because they already have more and can risk more than a poor individual. For example, look at how big investors and their institutions invest millions and billion dollars in Bitcoin while we from the poor state can't even afford 0.1 BTC. When BTC hit $25k, a big investor bought $100k worth BTC, I on the other hand bought $50 USD worth BTC, when BTC went to $50k all our portfolios doubled but are we all rich? No! He now has $200k (becomes richer) and I have $100 (not necessarily become poorer but still poor), but we have the same opportunity.
So with BNB locked staking, the minimum is 0.1 and maximum is 5000 BNB to be invested for either 30, 60 or 90 days. So I began playing with the numbers. I realized if I stake 1.02 BNB for 90 days at an APY of 19.79%, and someone out there staked the maximum 5000 BNB for the same period and APY, at the end I walk away with 0.04977304 BNB of interest while they walk away with an interest of 243.9855 BNB.
So after all this I have learned that life is not fair and will never be fair. The rich will always become richer and the poor poorer but if they do little investments, they one day accumulate that and be wealthy too. So in conclusion:
- Be proud of your small investments and side hustles, no matter how small they are, at least you are doing something.
- Do not compete with anyone or the rich.
- Set your own goals and maximize your potential to rich them.
- Keep learning, Keep growing!
Remember the law of dreams: KEEP MOVING by Peter Behrens
