Research Summary
The report critically examines the role of Crypto Twitter (“CT”) in shaping investment decisions. It argues that CT is a misleading platform that often leads to inferior investment returns. The report suggests that the desire for superior returns is often overshadowed by other desires such as the need for validation, entertainment, or community. It concludes that true investment success lies beyond the noise of CT.
Key Takeaways
The Illusion of Crypto Twitter
- CT as a Rorschach Test: The report suggests that CT is like a Rorschach test, morphing into what the user seeks. It can appear as a casino to a degenerate, a source of alpha to a novice, or a nuanced platform to a seasoned investor. However, these perceptions are misguided.
- CT’s Misleading Nature: The report argues that CT is a schizophrenic cesspool of market commentary and investment endorsement, making it difficult to distinguish valuable signals from the noise.
Questioning the Value of CT
- Questioning Success on CT: The report questions the evidence of anyone on CT knowing anything substantial about investments. It suggests that success in past cycles does not necessarily indicate skill, but could be attributed to luck.
- Alpha on Twitter: The report argues that by definition, alpha cannot be found on CT. By the time information appears on a user’s timeline, they are taking on significant risk for minimal reward.
Understanding the True Desire of CT Users
- Desire Beyond Superior Returns: The report suggests that CT users do not truly seek superior investment returns. Instead, they desire other things such as validation, entertainment, or community.
- The Illusion of Future Success: The report highlights the tantalizing idea that keeps CT users hooked – the belief that they will find the correct take in the future, despite past failures.
Actionable Insights
- Re-evaluating the Use of CT: Investors should critically evaluate their use of CT and whether it truly serves their investment goals. They should consider the potential risks and rewards of relying on CT for investment decisions.
- Understanding True Desires: Investors should introspect to understand their true desires. If superior returns are the goal, they should consider whether their actions align with this desire.
- Seeking Investment Success Beyond CT: Investors should explore other avenues for investment success beyond CT. This could involve traditional research methods, consulting with financial advisors, or using other investment platforms.
