I got into crypto at the beginning of the 2018 bear run. It was a dark time in the crypto space, to say the least. Many lost their investment to the ruthless bear run. This was after a bull market that had many people in a frenzy, selling their properties and businesses to buy magic internet money.
I spent the better half of the last 3 years listening to people complain about their losses. Even today, people are not short of criticism of the crypto industry. I attribute this to the woes of the last bear run.
To put the 2018 incident into perspective, imagine what a 90% loss would do to your portfolio right now. In my case, my portfolio will go down to a couple of dollars. That's a huge loss and there is nothing that can prepare anyone for such a catastrophic event.
2020 marked the beginning of the bull market and overturned the losses of 2018. Investors who did not sell their position were able to recoup their losses. For new entrants into the industry like myself, we had reasons to smile at the bank. A lot of people made life-changing money during this period. Despite the gains of the past two years, many people are still stuck in the trauma of the bear market. They never got over the shock of 2018 and this has influenced all their financial decisions
It's been almost two years since the rise of cryptocurrencies. The crypto industry has gained popularity during this time, onboarding millions of people across the globe. We've had the DeFi and NFT trend. We could say the industry has matured to a certain degree despite still being speculative.
The crypto sphere has had two years to prepare for what many consider to be an inevitable market crash. There is a lot of dumb money floating around However, in retrospect, there has never been a shortage of dumb money, even during the bear market. The only difference now is the media coverage. Nothing has changed.
DEALING WITH THE REALITY OF A SPECULATIVE WORLD
In a speculative world, most people do not understand their position which can be a cause of anxiety and fear. This is not exclusive to cryptocurrency only as those in the traditional financial system have to deal with speculation. Some of the top venture capitalists/investors I follow are liquidating their assets. The general sentiment in the market currently is that the world is heading towards another financial crisis. Thus, most investors react to the trauma of past experiences and the fear of the future.
I have been a victim of my fears and insecurities. In late 2021 I took out more than 50% of my crypto portfolio to reinvest in a venture I am 90% never going to pursue. During this time, I have tried to reinvent myself. This is to ensure I can have other options if being a content creator wasn’t viable anymore. I have lost time and money trying to hedge against what many consider to be inevitable. At the back of my mind crypto is and can never be enough, even though it got me this far.
WHY IS CRYPTO NOT ENOUGH?
Why is crypto not enough? Why do we seek solace in institutions and activities that have failed us many times? Why is a job that offers little or no opportunity to scale better than participating in a global community of innovators and investors? Because it is volatile? What isn’t? Have we forgotten the woes of the 2007 and 2009 global financial crises?
We will all feel the impact of a global financial crisis when it does occur, some more than others. This is because the world is connected, what affects one industry affects other industries. So the major adjust should occur in our mind and lifestyle. Letting fear and anxiety crowd our judgement robs our life of the peace it needs, leading (most times) to bad decisions.
I can't claim to understand what it means to lose 90% percent of my portfolio, but I have lost many things in life. Hit the rock bottom a couple of times. Been there done that, they say. I am not afraid of the future. There are endless opportunities even in the midst of problems. Keep building.
Posted Using LeoFinance Beta
Bear markets are a part of life. People need to learn how to deal with them. It is like breathing, we do not only inhale, but have to exhale also.
Why do people think markets only go up?
Posted Using LeoFinance Beta
People only want to win; people are mostly concerned about their pocket; they do not believe in anything other than their pocket. Yes, we all want to make money but...i dunno. I think when you feel part of something it becomes less of a worry.
Posted Using LeoFinance Beta
This is brilliantly written, well 2018 was definitely a testing time in crypto and there is no amount of gains that would make some people forget it. To some extent, it serves as a check to the excess of people and it's even taught a valuable lesson that one should HOLD no matter the illusion that the ship is sinking.
Posted Using LeoFinance Beta
Thank you bro
truly, I want everything to crash so we go back to the way things were. I am used to that. I don't think I am going anywhere. This is my home; these are my people. it has transcended money for me (to some degree).
Posted Using LeoFinance Beta
Building up when everything goes crashing down is the key to thriving when the trend reverses. This was proven historically in the crypto evolution and it is cycled now and in the future. It is up to us to know how much is enough and reap some rewards to make a comfortable living while keeping a part of the portfolio to continue the financial adventure we have embarked on.
Posted Using LeoFinance Beta
This is spot on. I am really not worried about becoming rich. I have enough to be comfortable. All I want to do is contribute in my own way to the growth of the ecosystem. This is personal. I guess that is why I am not overly concerned about the market cycle. Some things are just going to fall in place with the right mentality
Posted Using LeoFinance Beta
The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.