"This market's un-bear-able"
_ Depression Bear
That is a direct quote.
I don't make this shit up.
Depression Bear might be my "spirit animal", as I think that we generally have the same thoughts. But where we differ is, I have a stubborn streak of "hope" through me that I can't seem to shake. In fact, I tend to work better when the markets are depressed, than when they are riding high, which could be because I get a good "why" to do the work, rather than asking myself, "why am I working?" That vein of hope sees light at the end of the dark tunnel, so I will keep working, blindly heading toward a better future.
Do you know what is happening with crypto?
This is a question I got this morning for a recent crypto convert, even though they have not bought any and do not own any. They are converted to the "idea" of it, but haven't yet built any understanding, yet, despite having zero skin in the game, they (like most people) focus on price too.
it is a response to the massive overprinting of cash during the last two years, which postponed and worsened an inevitable crash
While not entirely happy with the "the entire economy is collapsing" argument and the fact that tech stocks have been taking a hammering for 6 months, with some of the largest down 40-50% YTD.
I assume you are talking about prices, because in regards to everything else, development keeps on happening continuously :)
I also added:
Price is affected by liquidity, and the majority of tokens are not necessarily liquid, especially with bitcoin. There are many large holders, meaning only a fraction of the tokens are available to buy, so scarcity is high and when demand is high, price moves very fast up. But, when it gets to the peak where people are more willing to add their liquidity and sell, it moves very fast down, as the market is thin.
A simple example I know..
So, what is a better indicator than price?
What various projects are doing. Look at it like company stocks. What does a company need to do to make those stocks valuable and offer dividends?
Build of course!
Establish a supply chain and process, create and reliably produce a product, generate demand willing to pay, nurture a customer base, innovate, consolidate, improve efficiencies...
Be a business.
Do you recognize what "being a business" means? Well, a business has to survive the bear markets - it can't just be around when times are good. This means that the bear markets are building times, not hibernating times and in order to keep building, there has to be the resources available to build and what gets built, has to be something that is going to be in demand enough that it will cover operating expenses and hopefully, be in much higher demand down the track when the market sentiment changes tack and heads up with the wind of sentiment at its back driving it.
A business can't afford to hibernate during the bear markets, because they have obligations to meet regardless of market conditions. So, they scale back on staff, they crush supply chains to reduce costs and they consolidate their activities into survival, finding a balance between development, survival, market growth and share, as well as employee retention and wellbeing - at least to some extent. Whilst this all changes and has many factors and variables depending on the industry and business model, very few businesses can "shut up shop" and sleep when conditions aren't ideal.
However, since most crypto projects have no real staff, no product and their only usecase is trading (in some form) demand, shutting up shop is quite easy, because the overheads are low to non-existent and there is very little commitment from *anyone involved - including the "investors" who hold the associated tokens. For most cryptos, there is zero reason to actually hold through a bear market, because there is nothing to do with the "assets" involved.
There is a good reason that crypto skeptics will argue that crypto has "no usecase" because the vast majority of it doesn't. People will argue and complain about this from many perspectives, but the fact is that 95% of cryptos will disappear, and other than the "financial loss" of the perceived market value of the tokens, nothing changes. They don't touch on anyone's lives practically in any way - they are valueless.
Now, some of them might have "unrealized value", meaning that they are like startups that are building their product and will eventually go to market with it, generating demand and a market share. However, most are like the dotcom bubble startups, an idea, a URL and high levels of stupid venture capital investment. Not many of those survived past early the 2000s, but those that did and those that came after, created an incredibly valuable industry that has touched our practical lives in a myriad ways daily, for better and worse.
But, I don't own a blockchain business, yet I am still actively looking to participate and build within the industry. This takes form clearly on Hive, where it does affect my daily life and I have a daily demand for the product it offers, which is an experience within a community, content, relationships and of course, the various applications and games like Splinterlands that I interact with daily too, which have their second-layer values in-built, that increases my connection to Layer 1, with layer 1 increasing my reasons to support Layer 2.
And, within this ecosystem, I am able to interact with people who like me, have hope, even if sometimes the fears bubble to the surface too, and people get scared that what they value, is not going to survive. This is natural, because whilst most people aren't running Hive businesses and there are no clear owners, most users see themselves as investors who are supporting a whole network of businesses, in the hope that sometime down the track, there will be returns, not only for themselves, but also for the entire community.
This makes me even more hopeful, that bear or bull - there is value in Hive because people are willing to make it part of their practical lives, even if it is only to drop a vote, write a comment, a post or submit a team for battle in the hope for a win.
Being part of an active community - makes a bear market,
Bear-able.
Even Depression Bear survives on Hive.
Taraz
[ Gen1: Hive ]
Posted Using LeoFinance Beta
I got into the crypto realm during the recent bull, all time highs left and right. A few months in right now, and I'm getting to see an absolute bloodbath. Now I understand why a lot of people don't last too long in the crypto realm or when it comes to "investments" in general. Most of the people quite easily give up, and decide to run as soon as they see a little bit of red in the markets. Only a handful of people really stick around patiently, while play it all for the long-term.
And I guess that's what makes Hive stand out, when compared to the other communities. Not only do these people believe in crypto, but they also absolutely love Hive and its communities, and are in it for the long run.
This will be my second bloodbath type experience. I got into it sort of the same as you. Back in 2017 when things spiked really high I got into crypto and then lost a little bit. What I thankfully did do though, was get into a place like Hive and make some smart investments. I don't have something to retire on that's for sure but I'm super happy with how it's turned out so far! The best thing we can do is have a platform like Hive and Leo Finance to keep us engaged and talking with people during these market swings. If we can stay engaged and entertained, shooting the shit with people then we are much better off in the long run. Doesn't hurt to earn a little crypto for doing all of that too!
I made the smart move last year to stop trying to buy low sell high. I just buy and hold and don't bother trying to do swing trades. I got burned so many times by the flaming hot knife as it was falling down, trying to catch it as it fell so I didn't get cut. Eventually we will need to do some selling but that's a long ways off I would hope.
I tried a bit of trading when it all started going down in Jan, decent profits, and I'm still experimenting, just so that I get to know how it all feels. For now it's all just experiments and tests for me, so that I just get to learn.
I know how it all goes, and I am being guided with the basics by some of the veterans who are here on Hive, yet, I do sometimes dip my toes into the other aspects sometimes. Don't mind making a few silly mistakes, just wanna explore this space for now, and grow in a slow and steady pace.
Luckily, once again, Hive and its many communities and users make this "bloodbath" and overall journey worthwhile, everyone is growing together, at their own pace.
It can be hard times for people who come in at the top of a bull and buy in heavily - but for those who dipped a toe, they get to taste the volatility on the way down and then, know what lays on the other side. During the bear, they can stack like they couldn't during a bull.
I'm actually glad that I'm taking it slow. I did join in during the end of 2021, but even then I believe that I'm quite "early" in this crypto realm, so there's still a long way to go.
It's time to learn and build, slow and steady for now haha. 🥃
Oh yes, you are early - this is just getting started!
YES SIRRR 🥃
:)
Two good replies here by @looftee and @riz611 and I also agree 100% with your post.
I for one can only rely on my post income and curations, but it has brought me a far way and tomorrow I will be on Hive for 5 years.
The time now is to knuckle down and to just keep on building as we all love Hive.
!BEER
5 years tomorrow! Congrats!!!
Now this is what I call old age, as it is not tomorrow. I thought that tomorrow is the 19th of June. Apologies.
Hey man, congrats to you in advance for completing 5 whole years on Hive.
Cheers 🥃
Thank you and your advance congrats is still good, as it is not tomorrow, but on the 19th of June. 4 days from now. My mistake.
Cheers and have a !BEER
You are welcome good sir, I wish you all the best for the journey that lies ahead.
10 years on the Hive blockchain is the next goal I'm guessing haha. Cheers to that. 🥃
Thank you kindly for the wishes and the high hopes, as in 10 years if I make it, I will be 78 years old and most probably senile 😜
It's all in the mind I believe haha. For now, let's just keep on walking on this path. 🥃🌆
I guess I have about 5 months till I earn that 1 year badge of mine, feels like forever haha. Hopefully I'll last that long.
Yep, mind games indeed.
Time flies lately and you will get there mate. Just keep yourself busy!
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Thank you and you will also get there as you know.
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You know what, you are so right. In the last major economic recession, that's 2008, many fortune 500 companies were built. Kauffmann foundation did a study on it in 2009.
The companies/startups that work more in the bear market, has more probability to succeed in the future.
I think it's because these companies give people hope that everything is not going to end. Hope is a powerful factor.
Another reason is that these products/startups aren't intrinsically motivated by money. They are focused more on other factors.
Like playing for fun and earning money. Investing your time with enjoyment - splinterlands, rising star, dcity, dcrops.
Sharing your thoughts, ideas, creativity with others and earning a little bit - hive.
Also, when someone invests(time or money) in these projects, thanks to crypto, people feel somewhat ownership. So they want it to succeed.
Every insane idea about NFTs gets millions of dollars in days when it's the bull market peak.
When it's bear market, there is fear to invest in any project. Most people will sell the crypto holdings that they don't believe in.
Most people will accumulate more tokens/coins of their favourite projects.
I think the bear market is the time to observe behavioural economics. During a bull run, everyone is smart. During a bear market, you find out who's smart.
I didn't know this, but it makes a lot of sense.
The other thing is, it gives incentive for the employees, as they are able to possibly get in low to their company, attaching them more. plus, they get to feel a part of building better - they get that sense of accomplishment and ownership.
Absolutely.
Bull or bear, the world and markets move forward. It's not like the utility on crypto has gone away and people will be back. So the best someone can do is to build.
Posted Using LeoFinance Beta
And, the market volatility goes both up and down daily too, for those who are interested in such things.
As strange as it may be I'm actually excited for the bear here and it's painful for many people but I wouldn't mind if prices continued to slide. I want to build our crypto stack at discounted prices! The prices will eventually go in the other direction and go back up so as you say, the bear markets are the time for building! I'd love to have much larger stacks and had I invested when I could have at 3k per Bitcoin and bought a couple, I'd be a lot happier but that's the thing about life. We take chances and if there is a second chance, you go into it a little more aggressive if you can the second time around. Third chances don't usually happen and certainly ones that don't turn out poorly in the end.
As far as Hive goes, I'm also excited about the prospect to get the discounted Hive as well. Getting 3 Hive per HBD I'm selling is a pretty big win for me! I'll take that all day lol and with the hopeful release of something like Riftwatchers and the other things related to Splinterlands coming down the pike, I have a good shot at sizably increasing my Hive holdings. These are all exciting times for me because these are investments for the future or a rainy day. The more we can build them the better they become in the end!
This is definitely another bite at the cherry situation, for those who are willing to get in and look long. Long might not be "that long" even, as according to some, the bear in equity won't last too long and, there are elections coming in the US at the end of year, right?
For the active and somewhat diversified in Hive experiences, this is a pretty good opportunity to cement that future position and still have a bit left over :)
This bear has been predicted for some time. Yeah, I should have been more ready. I think crypro will recover, but I am more bear-ish about other aspects of the market. Here in the USA we have inflation and may even get stagflation. Some believe the markets are being purposely tanked to bring in the great reset. I do not know.
We all should have been more ready :)
It is crazy that people are believing that this is "all a surprise"
Price is only temporary, a photo taken at a certain moment. Use case and intrinsic value is what it is all about!
For sure. It is something that many people who are only on the exchanges, don't understand. They are looking to cash back into fiat. Those who are in the industry, are looking to eventually convert over to crypto.
Very well said. You gave me some key points to focus on the next time am asked this same question by someone. It is usually my brother in law, but from time to time someone else asks me too. I love what we are building here on Hive.
Posted Using LeoFinance Beta
This is another value of Hive - being able to openly discuss these kinds of things together, getting the viewpoints of multiple people, who aren't strangers. on the internet - at least not in the same way as in many "communities" :)
For sure!
Posted Using LeoFinance Beta
I believe is definitely not a problem to experience the bear and bull market in hive because both is beneficial when utilizing the opportunity it renders, most especially staking and accumulating more tokens or coins when prices are low is a best move for more profits when prices later goes up to benefits from the Investments made.
It is good to experience the bears, though many shrink away, scared of the experience. It is a massive opportunity for people to learn and build, stack and prepare.
When that question asked me, I tell them that people have yet not understood the value of cryptos, which they will be using as payment instrument in the future.
They will find out :)
I have a smile on my face as I know what is possible and also prefer the Bear Markets. It makes things far easier as price means nothing and growing your value back up is what is important. many worry about price yet we cannot control that so control the controllables. Hope you are feeling better after the treatment.
Posted Using LeoFinance Beta
Yep - focus on what we can influence and yes, build back better.
I am pretty worn out, but surviving. Thanks for asking :)
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