What Goes Up, Must Come Down
The path to success for cryptocurrency is a bumpy one, the market has taken the people for a ride. But who stays on for the ride? Individuals who have taken losses, and those who believe in the market. But, everyone has a threshold to mitigate their losses.
When the market goes up, people rally behind it claiming crypto as the future.
The Fear Of The Unknown
What makes cryptocurrency so volatile? Cryptocurrency welcomed millennials; new and inexperienced traders wanting to ride the uptrend with limited knowledge of what they are really investing in. So at the first sign of heavy losses, they panic sell.
What Goes Down, Will Go Up
When the market goes down, people feel deceived and they start losing confidence.
But look at traditional stock markets. After every dip, it always comes back stronger.
The Fear Of Losing Out
Bitcoin and all other cryptocurrencies were booming. Profits were everywhere for the taking and everyone wanted a piece of it. Just like, when walking past a restaurant and you see a long queue? You’ll be interested to join the queue just to check out the hype. Even if you aren’t sure whether the food is great at all. We simply follow others.
The same goes for crypto. Good news and a price climb? We jump in without hesitation. Bad news and people start selling? We do the same, it’s just in our nature. Due to the fear of losing out. No one wants to miss out on gains, nor lose more than other people.
And who stands to gain from all this selling? The individuals who orchestrated the fake news. These players understand the potential of cryptocurrency and they want to penetrate the market. But they refuse to pay the highest price. Sell a story, get people to panic sell, and buy-in!
“Trading, in essence, is the exchange of wealth from one individual to another.”
Long Live The King, For Now
Nothing lasts forever. If Bitcoin was to truly lose its value, another coin will simply take its place. Bitcoin was created for one sole purpose. To allow people to transact freely without additional costs imposed by middlemen (banks, companies). But what are the odds someone doesn’t want it? We would gladly buy every single Bitcoin at a cent solely because of its humble beginnings and what it has created for us. The blockchain.
The Reason Why Crypto Will Never Die
The technology behind Bitcoin is key: Blockchain. Ushering in the new era of how we WILL transact in the future. Companies that actually use their coins in their ecosystem will never die off(like NEO). Because the coins serve a need and a purpose. Because of its transactional purposes, the creation of smart contracts and even Proof of Stake.
The world has two schools of thought: Crypto Adverse, Crypto Enthusiast. With blockchain here to stay, where do you stand?