"Not Financial Advice": Has it done more harm than good?

"You told me at the end of every post you wrote about crypto that it's not financial advice. You scared me away from buying Bitcoin each time I read your post. Now Bitcoin is trading at a price no one could ever imagine, are you still telling me it's not financial advice?"

I have read complaints like the above from so many people, and I begin to think about it. Does that statement "not financial advice" actually prevent people from investing in Bitcoin? Personally, I have been scared to buy crypto because of that statement that usually pop up everywhere whenever crypto is being discussed, and I now feel regret for being naive by that statement seeing how Bitcoin has performed over the years. I know I am not the only one in this category. So many people have been scared away from investing in crypto by that statement and they are in regret just like me.

It's somewhat ironic, that what was intended as a protection for both the content writer and the readers has now turned out to be the very barrier that has driven most people away from investing in crypto. I have been thinking about this lately, especially after reading other people sharing stories of regrets like me. In an effort to stay safe and responsible, the crypto community may have created a psychological barrier that might have prevented many people from entering one of the most important financial innovation of our time.

Let's face it, the "not financial advice" statement almost feels like a creepy warning label that only makes people doubt themselves. It's more like telling someone, "Don't think about the hyenas," and that's all you started thinking about. But in this case it's just "don't blame me if you lose money" and that's all anyone can think about: a loss on your investment. The disclaimer has somehow moved from a simple legal protection to something that acts like a flashing red flag.

Frustratingly, these statements were never intended to discourage anyone. It was basically a legal protection, similar to those long agreement terms that no one reads. But somehow they have created their own life in the crypto world. Every YouTube video, every blog post and every tweet about crypto comes with this cautionary tale and has a chilling effect on potential investors.

I remember back in 2017, 2018 and even 2020, each time I browsed crypto forums, every post usually ended with "This is not financial advice." And every time I thought, "Well, if they're not confident enough to call it advice, maybe I shouldn't risk it." How many of us have missed out on life-changing opportunities because of that little voice running? The psychological effect of these statements cannot be underestimated; it is the biggest momentum killer for potential investors.

Of course, in hindsight it's easy now to be frustrated and regret that Bitcoin has reached heights that no one could have predicted. By default, we have allowed a standard legal disclaimer to become our financial advisor. The irony is almost painful, a statement meant to protect us from bad financial decisions has prevented many from making potentially good ones. It looks like we have been standing on the sidelines watching this game unfold, just because we took the warning signs too seriously.

However, what I have learned is that being too careful can just be as costly as not being careful. Yes, we know crypto is volatile. We also know there are risks involved. But letting the disclaimer be the only driving factor in your decisions is also not the best strategy. These disclaimers should be what they are - simply a reminder to do your own due diligence, not some universal stop sign. It's simply to DYOR!

The crypto market has come a long way from its early days.Where disclaimers are necessary for legal reasons, we really need to get a better understanding of what they really mean. They don't say anything like "don't invest"; they say something like "make informed decisions". The difference between the two interpretations is as great as night and day.

From now on, I think we should treat these disclaimers for what they are. They are simply legal necessities, not fortune telling or crystal balls staring into the souls of our finances. They are not predictions of doom, but a reminder to do your own research and make your own decisions. Think of them as a form of protection for innocent content writers who want to share their knowledge without taking on the responsibility of financial advisors.

So maybe the next time you see "not financial advice", think of it a little more like a warning on your coffee cup: a necessary reminder that you're dealing with something hot, but it advises that you handle it with caution, but not that you shouldn't drink coffee. It's all about finding the balance between caution and action, protection versus paralysis.

What do you think about it? Have you also allowed these disclaimers to influence your investment decisions more than they should? Maybe it's time we all take a second look and think twice about how we view these warnings so we can make better crypto investment decisions.

Posted Using InLeo Alpha