I didn't buy the fucking dip.
Because in order to buy the dip, I would need to have available funds with which to buy, not the same tokens that are getting driven down in price. I am very, very bad at selling, which also makes me pretty bad at buying....
One day I will learn to sell.
But having said that, I know of plenty of people who are very good at selling, but still don't have anything to buy the dip, because they are very bad at holding value. Instead, they sell to finance their life, which seems like it might be necessary at times and I guess it is, but I also think that people get into the habit of living off what could be their investment, so they wouldn't have to constantly sell and could instead build.
"Living Costs" is of course a very valid argument to sell, but it should also be considered, for example in relation to earning on Hive, that without that earning, what would they do? And, this is important to note because in relation to Hive earnings, they are not distributed by a business, they are coming from a collective pool and distributed by stake, with that stake being directly affected by market activities. In general, the accounts that are taking rewards and selling everything they get, are seen as farmers and when they bring nothing of value to the community in any other tangible way other than dropping a post onto the chain, they are likely to lose those rewards through downvotes.
For example, in the last few weeks there have been a lot of accounts farming the @dtube vote, which has around 300,000 HP behind it, about it a $6 vote at 100%. The accounts don't actually interact with Hive, they just drop some link at DTube and it automatically posts to Hive. Many of these accounts like this one, are posting multiple times a day and suffice to say, the quality isn't great and there is no value to the community. There are dozens of these accounts and while they are not all farming, there are a lot who are. You can check the activity here and DYOR.
But, my point is, that seeing Hive rewards as earnings is dangerous, because it starts to make it feel like it is a job, where something is done and there is a salary. This is not the case, it is a reward and that reward is granted by a community of stakeholders, whose direct value is affected by the activities of others. Expecting them to see what they likely see as detrimental to their investment and potential and just let it go on unabated, is folly. It is like watching someone break into your house and steal all of your belongings, and holding the door open for them as they walk out holding it.
And then, this means that the income that someone has chosen to rely upon, can suddenly wither away, leaving no income for living expenses from "earnings", no stake to earn through voting and the like and, nothing to invest either - so when the dips happen, what is left?
But it isn't only the dips, right?
If selling for living costs, it isn't just not buying the dips, it is also not benefiting from the highs. Even looking at the earning on a post where we can see that over the last day or two the values on posts are going down as they adjust from the collapse in the market, the same amount of Hive (less HBD) is being distributed. This means that a dollar earned through a post today, might be 50 cents tomorrow, but it could also be three dollars in the future.
One in the Hand is better than two in the bush though, right?
As said, when a person needs to survive, they will do what they need to survive, but what kind of life is it when all there is are acts of desperation trying to survive? It is stressful, right?
I don't know about everyone, but for me at least, I think that I am someone who will struggle more than I have to now, in the hope that what I do will lead to me not having to struggle as much in the future. There are no guarantees to this of course, but there are no guarantees for anything in this life, but since experience matters, working toward something meaningful, brings purpose.
Hand to mouth.
I have lived hand to mouth before in my life and sometimes, there has been some hard decisions to be made. Currently, I feel I am in that position again, except this time, it is more by choice, as I am choosing to severely restrict my expenditures, using the bare minimum to make ends meet. This has pros and cons to it in many ways, however I also find it somewhat like a gamified experience, where "conserving energy" is the goal.
Today in a session with clients, we were talking about where people pay attention and I think a lot of people put far too much of their attentional resources into entertaining themselves in what are otherwise, non-generative activities. But, if the same people were entertained by generative activities, they would spend their time doing something they enjoy, plus something that adds value to their lives now and for the future.
So much of what we do is "in the moment" as if the future just doesn't exist, which might feel like living up to the "enjoy the moment" philosophy, but when that future comes and times are hard, *you have to enjoy that too. Something most people don't seem to want to acknowledge.
Crypto is a pool of potential filled with diamonds, but in order to really benefit from it, one has to make decisions on how to act today in order to have value tomorrow. At least for me, but I wonder if it is an age thing, where I am "in between" (mid-life crisis), where I am not young enough to live for the moment, and not old enough to have given up on trying to improve my future.
I am still idealistic enough to think that what I do actually matters.
Maybe I will look back on this period of my life and think, what a waste of time and energy when I could have been entertaining myself instead, spending whatever I got on current living, not caring about the future. Or, it might be that I will be glad I have done what I have done, lamenting I didn't do more of it when I had the chance. Either way, when the future arrives, unless it holds a time machine,
there is nothing I can do about what I did today.
Taraz
[ Gen1: Hive ]
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The whole 'Taking profits' thing is tricky.
What do we take them in? Fiat, Stable coins, Physical silver?
My preference is splinterlands cards, but HBD is another excellent option.
Future is unknown, hodl may or may not work forever.
Look at all the innovations along the way, how many companies are still around?
Crypto may be it today and near future, but there is no guarantee this diamond now is a diamond forever.
A good strategy is when your investments are up, take back your original investments so you still have that cash for the next opportunity.
You may miss out if the investment continues to run higher, but hey, you are ahead regardless.
Definitely not - which is why paying attention is so important. It isn't a "set and forget" lifestyle. It is far easier to sit in front of the TV and make only passive decisions on the future.
I think at this point relying on crypto as your main income is just a poor idea. Unless you are a developer or running a project, but even then, it is a little shaky. I think it can be a good supplemental income, but as a sole income, no way. I am the same as you. I did a poor job of selling, so it is harder for me to buy when the prices are down like this.
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Just ask the owner of FTX.
Though, I am sure he will still be "fine" overall, as he surely has some squirreled away.
Yeah, I was just thinking today I wonder if he has touched any of his personal wealth yet to try and make any of this right.
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We should start a club!
Hit me up on Discord! I'm in!
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:D
A point I was discussing earlier. You cant rely on this madness. That's not to say you cant indulge and indeed indulge heavily in it but to become dependent on it for income, that's a slippery slope of danger and mayhem.
Don't forget entitlement!! :D
Haha, can't forget that. It's the best one!
Did you check in on the usuals last night?
I did, there was some drama but not as much as I would have liked although I actually think that is because there are hardly any living would there that take the place seriously!
Let them go to hell with their collapse of cryptocurrency rates. 1 hive is always 1 hive.
It's okay that I cooked beans instead of steaks today, it's healthy food :)
I wonder if people eat healthier when they feel the pinch? Poorer people don't tend to eat healthily, but I mean going from "okay" to not quite so much.
To buy the dip, cashflow is very important. And not just cashflow from crypto when everything more or less go up and down similarly. Cashflow from the day job, or dividends from stock. Always good to be diversified.
I managed to scrapped up some cash and bought at 39 cents, was going to do it again at 29 cents but that involves selling some stock investments. Hopefully we stay in this range by next week so I can buy more 😄
Stocks are up today.
Yes - for certain. This is an issue for me as currently, day job pays for renovation and there is not much left over :)
How quickly can you convert cash into crypto?
We have regulated exchange here for fiat to Bitcoin. That takes about 30min to an hour to get the cash from a bank to that exchange. But not in large amounts.
Then Bitcoin to HIVE.
It used to take up to three days here, but it is faster now. I have had some go through in hours, but generally it is more like 24h.
Back in the early days, all exchanges were P2P or get scammed on PayPal lol.
It’s gotten a lot better now.
I am not good at selling, either. When it is up, I generally become greedy and wait for more up. I have some stocks which have been in good profit. I am not sure when to sell :)
It is always a challenge - greed. :D
They say that the best way to predict the future is to create it and that the future begins today, not tomorrow. At this time, when there is a downward trend, we think how smart it can be to save and buy. My activity in HIVE and what it generated, I had seen it as a "cushion" for the future: saving and investing had been my motto, but with the theft of my previous account, now I don't know if that is the best idea. I see people buying things or going on trips with the earnings that Hive generates for them, and I don't know, until now, if I should do the same. Living in the present, without thinking about tomorrow, may be crazy, but it may be a way to go through life lighter. The year is not yet over and it may bring us surprise. A productive Thursday, @tarazkp
How did you lose your previous account?
I got hacked! And I couldn't get it back because I had the Steemit password. I lost everything. After having a reputation of 72, I had to start from scratch. At first I got very depressed, I stopped posting, but I needed to write, to express myself, to share with the virtual friends I made on HIVE. But that was a lesson for me. I especially have to be careful with my password and my wallet. That's why I was telling you, how positive it can be to accumulate, to buy. The bad thing about these platforms is that they are decentralized and many people can see our wallet. That can "whet" the appetite of cyber wolves.
That sucks.
This is why everyone should be diligent with their security and not take it for granted.
I am glad that so far I did not sell hive. slowly but surely I am heading towards my goal of 10k hive power. I would never reach that goal if I would constantly sell.
Most people who sell say that they will "buy the dip" - I haven't seen much evidence of that in my experience.
Good analysis, I agree that relying on Crypto alone would be folly and for me Crypto is supplementary, I have professional full time job, shares and more. Over time, I'd like to add my own business and some real estate. The more passive income the better in my opinion.
Out of curiosity, has your financial "awareness" changed since entering Hive?
Good question. I've always been financially aware, maths was always strong subject for me, so my brain would naturally figure out where value was, and from a young age, I was a good saver and wanted to grow my savings.
That began with 2 or 3% in notice deposit account at the bank, then starting a grass cutting business with my friend when we were around 13 around the neighbourhood..
After University once I started making a few quid, I read Benjamin Graham's "The Intelligent Investor" which opened my eyes to investment opportunities and beating inflation and the risk and stupidity of leaving all your surplus in the bank.
I had Bitcoin, Ethereum, Chainlink and others before discovering Hive (Steemit at the time) It has been a fantastic discovery though and to answer your question since joining, I would say that my financial awareness probably has improved, but it was pretty good beforehand too to be fair.
Very true and well stated as having a place like Hive and not having any stake is rather dismal especially if you have been here for some time. What are the chances of getting out of a hole living hand to mouth if you don't invest for the future as nothing is changing. Quite incredible how some people think as tomorrow is not even a thought.
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There are accounts that are active and earning for five years, with no stake. It is insane.
You are very right, it depends on choice, one have to take his or her own decisions to make a success. I love your blog
We are defined by the choices we make.
The rewards earned on this comment will go directly to the people( @joydukeson ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
I didn't have spare funds to buy the dip either but I am still building by being active here on Hive. Maybe I will have some more funds next bear market but it's hard to tell how long things will last.
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I didn't realize there was a dip and I was able to convert some eth I got from an old liquidity pool and buy some Hive at .33 so thank you for mentioning the dip and making me take notice. It's only 250 Hive but it will provide more value than the eth in the long run. I will wait until the price goes back over .50 and then turn it into HBD for my savings account.
Like you, I'm at that same point in life where I have given up on the frivolous living and am trying to prepare for the future and that 20% is pretty hard to pass up. I'm lucky to get anything from my bank savings account interest.
I just keep scrapping and stacking the really clean copper, brass and aluminum and selling the dirty stuff to buy more tools for scrapping. It is far more productive than playing games or watching tv and in the end I will have a nice store of metals for the electric era we are in/coming into. I think that having a little bit of crypto added to the small government pension and the scrap income will be the saving grace in my later years. I just don't have the disposable income to buy a lot right now.
My problem is always knowing when to exit. I’m like a chronic diamond hand always holding bags to zero.
—-
All these questions drive me nuts sometimes. Thoughts of the future, reminiscing on the past, regrets, giving up and spend on yourself.
It is "anti-Buzz Lightyear Syndrome" - To zero and beyond!