While trying to write my opinion about a quote by Peter Thiel:
I expressed my opinion in a statement, that i think should be a quote on it’s own, and i’ll explain why below.
Taking risks is important, without taking risks, you would be putting yourself at the risk of different external events and factors– Abdallah Alaili
I wanted to create a separate post for this statement because it is based on a personal experience, that i think people should be aware of.
First, the story:
Lebanon has suffered from a banking system failure since late 2019, leading to hyperinflation and causing the value of the currency to drop by more than 60 times. To give you an example, 1 USD was worth 1500 LBP; now it is worth 90,000 LBP, representing a 60-fold drop in value. To simplify, what you earned over 2 months has become the equivalent of one day’s salary. What made things worse is that the banks refused to release people’s money, whether it was in USD or LBP. For three years, the banks have allowed customers to withdraw only modest amounts, forcing customers to watch their life savings disappear.
During the last decade, many countries have experienced similar hyperinflations. These external factors have affected millions of wealthy and middle-class people, plunging them into poverty overnight. The cash crunch is not the only example of external events; many other events have and continue to impact wealth value. Examples include the famous subprime crisis in 2008 or the dot-com bubble in the late 90s.
On a more individual level, a drop in a company’s profits, issues in a specific market, or difficulties in acquiring necessary production elements, can lead to company layoffs. Accidents, earthquakes, flooding, hurricanes, and so on are all risks due to external factors. There are numerous factors that can instantly affect your life in significant ways, over which you have no control.
The only way to counter these numerous risks, is by taking risks, to become an entrepreneur, to launch a start-ups, to invest, to pursue success.