Price only matters when you sell – The journey that is Bitcoin

in LeoFinance8 days ago

I recently asked at when people believed we would see a Bitcoin correction or stabilization. Seems it might have come sooner than expected. I can only imagine that for many crypto newcomers (which there are always tonnes of with every bull season) today’s steep falls across most coins must have hurt. But for those of us who have been here for a while, this is hardly newsworthy (although my stomach isn’t completely used to it yet).

Bitcoin correction 45k.png

Bitcoin's price development the past 90 days according to coingecko

Percentage-wise, this drop in prices is just the same as when BTC dropped from 12k to 10k in September, or from 10k to 8,2k in May. That said, it is perhaps noteworthy that this drop from 58k top to 45k bottom (so far), means a greater reduction in market cap than the total market cap of BTC through most of 2020.

That said, this is how it’s always been, and how it will likely continue to be for more years and bull/bear cycles to come. Yellen’s comments about BTC, and it’s apparent impact on price, is very similar to what we’ve seen when other “influential voices” of the past have made similar comments (anyone remembers JP Morgan?). It’s funny how the comments about Bitcoin and cryptocurrency just keep on reaching a higher and higher levels in the establishment hierarchy to which people look for directions.

But as always, the “bad news” hits, the storm calms, and the ship carries on. Only this time, however, knowing that it survived another and harsher storm and is thus increasingly confident in its resilience. So with Yellen now “out of the way”, who’s next and “above” her in the journey to the final boss of the game? Or what will happen when there’s suddenly no more imagined ceilings or perceived “influencers” capable of controlling Bitcoin?

And before you think it's only in the world of crypto that is seeing red these days, the biggest Tech stocks are also down 5-20% the past 2 days. Yet they're likely to continue being the best bets long term, as they have been for the past decades.

Tesla 23 feb.png

The price of Tesla stock at Feb 23. and the past 6 months according to Google

So what should you tell yourself on a red day?

Price only matters the day that you buy or sell a token.

How the rollercoaster ride in between looks retrospectively will then be irrelevant.

So keep HODLing and put in small efforts every day to increase the number of tokens that you believe in long term, whether that’s BTC, HIVE, LEO or … is there anything else? Well, those three then.

Enjoy the rides!

Fredrik

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I say don't pay attention to people trying to induce FUD into the crypto market, hold onto your coins or buy even more.. Don't give a chance to the same old people to control this new reality.. This is the chance for the people to really achieve financial freedom.

I find it interesting how Elon said the price is "probably too high", which he also did about Tesla long before it started to rally. Perhaps he is using his influence to improve his own stake.

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Thats what it's all about.. Why would he invest 1.5 billion dollars in something that now appears to be overvalued? One of the causes that made BTC rise in price was exactly that one investment!
It's cristal clear for me...

The deeper it goes in the red, the cheaper it is for me to buy my monthly quota. As I had no plans to sell anything in the near future, it doesn't matter much...

That's the way to look at it!

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Good advice for a newcomer and I'm starting to feel a lot less stomach churned than before. I think the horrendous experience of getting in at Christmas in 2017 to see everything get wiped out in 2018 with an 80% year long correction toughened me up. 20%? PAH! Time to get some more of those tokens then :D

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Hahaha, I'm sure there are a lot of people like you out there who got in at the last ATH, just like there will be this time :).

The train keeps on going though.

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It does, and that train is one savage freight train! Don't want to get hit by that again! Hopefully this time around, the newcomers won't get so sucked in and take the teachings us "previous BTC generation" can give them.

Then again, with laser eyes in every Twitter profile picture, I don't have too much hope that will happen haha

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Greed and wishful thinking tends to dominate decision making unfortunately.

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Yeah, especially under the influence of laser eyes lol - I don't know how any one can see clearly with those!

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Price only matters the day that you buy or sell a token.

Exactly, some says no, it's too volatile, so what? Like you said it's not a loss if you don't sell.
Thanks for writing.

Volatility just means more opportunity!
Thanks for commenting :)

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I don't have issues with red days, weeks or months. Years maybe.
I prefer to see gains in my portolio, obviously. Too much red can be depressing but I'm not here for the short term so I'm perfectly fine HODLing and increasing my positions. Yep... those 3.
Cheers!

That's what I like to hear! :)

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Price only matters the day that you buy or sell a token.

Yes excatly, if you don't have to completly rely on the money now it's easier to don't have weak hands. The money I have in crypto now will be there for a couple of years no matter what!

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Sounds like you have the right mindset! :)

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So true.. So true..

Dip should made you worry when you are investing left and right without understanding fundamentals, if it is good it will definitely recover and gain with time.

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Indeed. One should focus less on charts and more on what position one wants to have in a project and where one wants to see it going long term.

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keep those diamond hands

I think the shock exists amongst noobs, understandably so. They got in when everything was rosy. Today they've seen a different side of the crypto market they would soon get used to.

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You're completely right. It has always been that way with crypto. First, fast up and then down ... and then up again and down again ... no surprise to anyone who has been in this game for a long time ... so, hodl ... 😎 😁

I've usually been pretty good at selling at the tops. But then I forget to buy back when it's gone far down and end up regretting having sold at the previous tops as the new peaks soar way higher.

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Price only matters the day that you buy or sell a token.

Exactly! I'm quite happy with the drop in price of coins. It's given me levels where I'm more comfortable to buy again and this time I've promised myself that I will dollar cost average once things settle down again.

But then again, I've made that promise to myself a number of times in the past and then chicken out at some point. Maybe this times the time . . . 😂

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Consistency to simple rules are usually the best long term recipe for success.

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Consistency to simple rules are usually the best long term recipe for success.

Indeed! However, consistency is not my greatest strength. 😂

I'll be trying again though.

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Dip is the chance for hodlers to accumulate more.

Exactly! Although those benefits only come to the prepared. If you're instead walking in circles wishing you had sold at the top then you won't see the opportunity right in front of you.

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The title of your post says it all, @fredrikaa.

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Haha, yeah I felt so too!

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great post!

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Funny thing is they have been doom and glooming Bitcoin since the beginning. When it was about 2 bucks back in October 2011, they said doom. When it hit 200 bucks again it was doom. People were scrabbling around when it was in the $7,000 range and doom. It is so absurd to me that only now has it hit the 40-50K range that friends of mine who were so against are only now coming to me to ask me how to invest. I'm just like...get a time machine and hold, lol.

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