Asymmetrical Opportunities

i was reading an article from an VC industry professional about what he called Asymmetrical Opportunities, defined as opportunities with limited downside and above average upside.

As investors and people working in the startup space i found this concept really compelling. An example is with crypto.

I first encountered crypto in 2013/14 even then i would have been considered late to the game, and i didn’t really pay much attention to it, i’d considered putting in a little bit but by then it was already around 1000USD for a bitcoin, so i was hesitant. doesn’t take a lot of research to know what the value of that 1000USD would be today.

so here is the trade off – lose 1000 or lose 30k (roughly) hindsight is always 20:20.

when we look at NFT’s today, this consideration of asymmetrical opportunities seems relevant – the potential upsides are crytpo-level significant, so accepting the opportunity cost of a 1000USD is it worth a punt? well the question then becomes can you afford to spend 1000USD? consider what you might otherwise spend it on? and consider how long it would take you to recover 1000USD?

Leave a Reply

Your email address will not be published. Required fields are marked *