This is something commonly seen in both the FIAT world as well as Crypto world. There are many people who blindly follow the investment strategy of Rich people. I would say it might have worked in a few instances but not always. The base knowledge is very important to make wise decisions. Also when there is a loss happening, the Rich will have the potential to endure the loss but the person blindly following the rich will be broken and will never be able to recover back.
Not only in the crypto world but this also happens in the FIAT world as well. People are lazy to explore things by themselves. In such cases, they blindly follow what others say or what a big investor is doing. There is also a possibility where the calls given by a big investor would be correct 80 percent of the time. But my concern here is the remaining 20 percent of the time. What if we invest all our hard-earned money just because someone said something and we don't get it back.
We have seen this happening in the crypto world where a coin suddenly pumps if Elon Musk talks about that coin. But if we look at the fundamentals of that coin, we will be able to see so many flaws in that. I have to be the host with you guys that Hive is a far better cryptocurrency compared to many coins out there. I cannot freely transfer ETH from one wallet to another without losing a huge amount of money. In another case, Hive has a free transfer option. We can transfer the money from one wallet to another wallet without any transaction fee or gas fee involved.
This is one of the biggest things that crypto needs. There are several ways in which the investors or the node operators can be paid off but personally, I'm not a big fan of them being paid out of the transaction fees involved in one of the basic operations of a blockchain like transfers. But still, there are many people continuing to do developments on ETH. There are still many smart contracts and opportunities emerging out of ETH. This is because of the projection. People don't investigate or do their own research. They just go blindly with what others say.
I know that it is not always a loss and people earned a lot of money when Uniswap came into existence. In spite of the huge gas fees that were involved, people still earned a lot of money through staking, farming, and providing liquidity. There are still people staying very strong with ETH blockchain even though we have some good alternatives that will not eat up all our money in the form of Gas fees.
I would like to say that following the footprints of rich people or successful people is good. The ideology can be taken seriously but I would still say that we have to do our own research before getting very serious about something.
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