Weak Hands In Crypto: The Psychology Of Risk & Sacrifice
A lot of people say they cannot live a life of risk, but the truth is that they're scared of taking sacrifices that might not have 100% certainty of yielding favorable dividends. In life, everyone subconsciously lives a life of risk, and the reason why some people are mostly not conscious is that when a risk doesn't pose an imminent danger, but the futuristic danger is a possibility, they still go on to live it because the present is better to them than the future.
Take a look at crypto for example. Weak hands will always exist and this isn't because these guys do not learn from the "weak-actions" when the market retrogresses they're scared of making sacrifices, such sacrifices entail bearing the psychological pain of loss, loss in USD value, and bearing the horror of a complete collapse.
Losses Are Meant To Be Incurred
Weak hands are not demons, neither are they invisible, they're your fellow enthusiast who predicted 100k BTC in the last bull run, they're quick to predict unbelievable prices, but find it hard to believe that, extremely low prices are real too, so they're enthusiast in the bull run, but weak hands in the bear market.
These people aren't there for the long haul, their mentality is already short-termed, so they'll rather take losses, than show a little bit of resilience, and when the bull market begins to eclipse the bear, this is when they begin to invest again. Believe me, weak hands are greedy, they're the ones who wait for the topmost tops to sell, rather than taking some profits along the way, the idea of having it all counters the imagination of losing it all.
Higher Prices & The Accumulation Of Risk
You'll think their patience to wait for ATHs before they sell will be the same when the bear market comes, but they're quick to want to leave instead, but I can categorically tell you that too much greed can potentially turn one into a weak hand, especially when they calculated never taking profit when they should and how being faced with a possibility of losing everything.
Weak hands will forever be part of crypto because they're the ones seeking stability while making profit at the same time. It's classic, eating one's cake and having it. These people could easily put their money into stable assets, I mean, HBD, for example, offers 20% APY, even if it reduces to 10% it's still a great deal.
A great deal might equal small profit
But who wants that?
I mean, these people could easily buy stable assets had it been they can take the time to analyze and accept themselves as potential weak hands, and earn the little they can while having their stability, but no! They'll choose to go all out to make profit, but fail to accept the conditioning that comes with the process of profiteering in crypto.
We all know what we've signed up for. The possibilities of loss are inevitable, but weak hands are wired differently. They do accept these possibilities, this is why they disappear as a fart on a windy day when these possibilities start becoming reality. For example, I know F1 motor racers that have died and I know the ones that have succeeded, made millions of dollars, and are living the good life.
Risk & Sacrifice
Both the ones that died and the ones that are living and enjoying their money all knew what they signed up for. While risk and sacrifices seem like a distant cousins, in doing the latter, we're always sure of incurring the former. We all know the crypto market has a mind of its own and because of this, it weeds off weak hands before doing anything significantly positive.
However, it's a two-way thing. People need weak hands to buy even cheaper, but on the other hand, when they dump, it takes the market lower, creating a different form of undefined FUD in the process. In this space, we have weak hands who are seeking constant stability and massive profiteering. I believe no business venture in the world would offer this.
A little bit of instability creates opportunities
......but we're not wired to love or thrive on instability, most times we always take the time to train our minds to accept the volatility that comes with instability because it's part of the sacrifices we make for the greater good. This is how crypto works, we live with the knowledge that unforeseen circumstances lurk now and then, but we try to mitigate this thought with the believability of more profit, and less loss in the long run.
The psychology of weak hands in Crypto is quite an interesting conversation.
We're seeing different behavioral tendencies to crypto these days and this is because unscrupulous entities and SBF have rocked the boat, this has created more weak hands over time. Crypto requires more Sacrifice and patience these days, and it'll be interesting to see if we'll create more or less weak hands in the process.
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