Zooming out: How's your crypto doing?
It is funny how some people take so much pleasure in the suffering of others and I think that everyone who has been a public proponent for crypto or Bitcoin has come across the the - "How's your Bitcoin doing?" types of people, whenever there is a crash - but on the rise, the same people are conspicuously silent.
Binance has a rough PNL analysis function and I was looking at it this morning and the last week looked like this at the time:
I am up a little for the week.
But as they say, "when in doubt, zoom out" - and at the moment, we don't have to zoom very far, as while the losses yesterday and the day before were significant, for the month to date, it is well up in the green.
What this means is if a month ago it was worth 100 dollars, today it is worth 177, but with the 12% loss, it was more to the 200 range 24 hours earlier and the loss the day before would have put it more in the 220 range. So, rather than 120% gains for the month, I will have to settle for 78%. Oh noes, the losses!!!!
But of course, none of this really matters except when selling and buying and while I didn't have much, I was able to pick up a little bit of "cheap" so and so with some stable coin I had laying around. Hopefully this means that when the price rebounds a bit (as it currently is), that loss gap will close faster to break even and move into profit.
So when someone says "how is your crypto doing?" when price has crashed, the answer I want to give is, I bought the dip - although it isn't always possible as I don't always have something to buy with. What I will be doing now is trying to build up some kind of reserve again as prices climb, hoping that I will be able to buy the next dip to increase my holdings.
It is interesting to note the difference in attitude of holders and non-holders when prices crash and when they climb, as well as the differences in individual reaction to it. Some holders very quickly get accustomed to the expectation of a climb and react heavily to the retrace, even if they are significantly up. Non-holders are silent in the climb, but are gleeful in the decline, as they can press the point to the holders they know.
The problem with both of these positions is that they are short-term thinking. A holder shouldn't get accustomed to the immediate gains, but should be considering the overall trend. And the non-holder doesn't consider the trend at all, as they read in the news about a 20% price crash, without acknowledging the 1000% gains over the last year or so. Zooming out on the total crypto cap tells a little more of the story.
In my opinion, it is good for people in crypto to consider the various emotional positions that people take, as they become indicators of future trends and what I have noticed recently is that the people looking to "rub in" the dip are declining, as they see how much opportunity they have missed out on by not participating. The question of "how's your crypto doing now?" has changed tone to be one of less mocking and more curiosity.
This indicates the start of adoption, as more and more people are getting close to pulling the trigger and making their first purchase. And once they do, there will be no going back for them, as they will be hooked. The skeptics will become holders.
Taraz [ Gen1: Hive ]
Posted Using LeoFinance Beta
