It is interesting to see the changes in value of my Hive account adding 20,000 dollars in a couple hours, but it still being "down" almost 50% from just a few months ago.
Up and Down are relative terms of course, as they need a reference point of some kind for them to make sense to us. When it comes to price, we generally use the market as an indicator of value, but it doesn't really capture that much of what is actually important. When people are more familiar with a project, then attachment and sentiment are applied and often people "overvalue" something they like.
But, most people tend to use the highs and lows as indicators of value where for example, Bitcoin is currently about 30% down on its high in the 60Ks a few months back. However, this doesn't mean it is low, does it? I know quite a few people who bought and held Bitcoin when it was in the 100s of dollars, so for them 47,000 dollars a coin is very much up. 400x gains are nothing to sneeze at.
It is interesting though, as we all have a sense of the value of a token at any given point in time, but a few days, weeks or months either side, our internal sense of pricing could be very different. At the start of the year HIVE was sitting at around 11 cents and many people didn't buy because it was too expensive and now at 500% up it is 5x more expensive, but those same people are comparing it to the 90 cent prices back in April, so it is down. For those that did buy at 11 cents, are you happy?
Many aren't, because they see that they could have sold at the peak and bought back at the low and now be getting extended gains on the way back up. Let's say that we bought some at the low.
1000 HIVE bought in January = 110 dollars.
1000 HIVE sold in April = 900 dollars.
900 dollars of HIVE in June = 4,200 HIVE.
4,200 HIVE sold today = 2100 dollars.
That is about a 20x gain on HIVE this year with two buys and two sells if hitting the peaks and the dips.
How'd you do?
Well, most people don't hit the dips, nor do they hit the peaks, because if most people did, the shape of the curves would change. It is only a few that can really sell at the high and the price they get is because others didn't sell at the same time, something many people tend to forget on Hive for example. Over the years people have mocked me for holding HIVE and not selling, but it is people like me holding that allowed them to get their sells in. The funny thing is, some of those same people think it isn't fair that they don't get support on the platform, which is an interesting position considering that their sells were supported by stakeholders.
Not everyone is cut out for hodling and it isn't just because people have bills to pay and need to spend what they get. For most, the reason they are unable to hold is because they have a strong aversion to loss, meaning that they sell for what they see as a gain, so that they get something. However, "high" and "low" is relative to the moment, so if a person sold today at 50c and it went to 40c tomorrow, they would feel pretty good about their decision, but if a month from now it went to a dollar, they might have a different feeling. If however, they sold for 50c today and bought at 40c tomorrow, a month down the track they would be feeling pretty good after adding an extra 20% in gains.
Most people don't buy back though, do they? If they did, there would be a lot of people who sold with far larger accounts than they have, but again, this would skew the markets, meaning that they wouldn't drop as far. The reason that there are some accounts that are much larger than others is of course that when the markets are down they buy, while those who have a loss aversion or think they can buy in again lower for additional coin are selling.
A year or two from now, I might look back at this post and say, I wish I had sold. Or, I could look back and say, I'm glad I held. For me, a year down the track and I will have at least 10% more HIVE than I have today because of curation and while for some that is not attractive, for more it is. this is part of the market sentiment and while a lot of people are pooling tokens on Eth for 6% a year, I can beat that with Hive, as well as fulfill my entertainment requirements along the way, as well as many other of my needs.
50 cents is not high in my opinion - but then, neither is a dollar. It just depends on what we use as a reference of value.
11 cents was very low.
Taraz
[ Gen1: Hive ]
Posted Using LeoFinance Beta
Is better to hold the coin for Long than to sell when it's as peak,and buy when is low.My BTC of 7 dollars that I remained when I did MMM,5 yrs ago is around 290 dollars, I still hold it,I have not sell it.I still know that BTC will reach 100k peak next year,buy that time my 290 dollars BTC will reach upto 400 or 500 dollars that's cool. that's how I want to build my Hive coin because I will hold it for years because crypto currency is my investment and bank.
Thanks for the information.
Posted Using LeoFinance Beta
Would have been nice to have had a bit more BTC back then :)
I do it this way too - it is my way out of the traditional economy and supportive of what is to come.
Nice
Posted Using LeoFinance Beta
This is where you should average as much as you can, like buying 100 Hive every month and thus you always benefit in the longer run.
Yep. Many want to get the lows, so wait and wait - until they miss it.
And for me Hive is just a game, or a blog, or a conversation...
I don’t want to trade with a coin - sell/buy...
I’ll just accumulate hive coins, use them as a long-term investment.
At least for five years.
I hope the value of the coin rises!
As I have said many times, Hive is the best game on the internet :)
I always wonder how people choose an investment horizon...why 5 years and not 3 or 10?)
Это индивидуально))
Молодым, конечно, можно и на 10 лет инвестировать!
Но у меня уже пенсионный возраст(
Поэтому, хочется попутешествовать еще в активном состоянии!
А через 10 лет уже не до путешествий будет...
Как-то так ☺️
Куда планируете отправиться в первую очередь?)
О, я пока не планирую))
Как можно планировать в нашей реальности?
Да еще на 5 лет...
Но мечта есть... Куда-нибудь на океан! Хоть на недельку!
Или в морской круиз!
Agree.
Price and value are subjective, based on where you are and where you started.
But the true value to me in both DeFi liquidity provision and a content reward system like Hive is not necessarily to profits made on highs, but the steadily increasing daily income you get from accumulating assets. This economic self sufficiency is what attracts me, and sustained me before I succumbed to FOMO and sold all for Bitcoin.
Now the buys and sells to accumulate more Hive are a bird of a different feather, and those talented enough to fo this, have my respect.
I love the ending of the post by the way, well done.
Posted Using LeoFinance Beta
I agree. This is why I don't actually trade that much these days as while it is nice to get some big gains, the boring path of incremental gains I am valuing more :)
that's a lot of gains. I had bought some hive at a low price not much but at least worth 100$ and sell at 200$ or 250$
I bought and sold and bought along the way too. I did get some low buys, but didn't sell any at the last highs.
I am doing it to buy low sell high I made from 100$ to 150$ in few weeks
You kind of succeeded on your goal to have more hive right😅
Everything is just a gamble at this point, all you need do is make up your mind. To either sell, or retain
If it isn't going to make a significant difference right now, do you think it is better to sell or hold?
I still hold my view of holding it, tell when I'm fully certain that there's no hope any more.
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Hive is not something to sell at 0.50 cents . i remembered 2017 when steem was touched 8.00$ and Hive is much better ecosystem in compare of Steem.
Hive deserve to be $5 coin but people don't evaluate it so far.
i am hoping it soon will be under Bullish radar and bitcoin if hits 100k then Hive will be much stable to $2.00 .
I've just been stacking and selling some things to get more hive or well LEO/CUB as I believe those might have a little more potential. Hive still has massive potential though.
I'll take the ten percent a year growth, beats any current banks. Plus that 10% keeps on compounding and compounding. I do need to keep some liquid Hive though this month I am pretty slim on it, just to many Hive Engine tokens and a couple of other projects that need liquid Hive. I need to replenish my play on Ionomy funds that I recently used.
I don't care the price of HIVE or HBD. I just stake and stake or power up. There's a phrase here; "It becomes a lake drop by drop"
Well I've finally learned and accepted the fact that with crypto in general, it's a long term game. Five years from now is nothing down the line, and if I had known that five years ago (or at least when I started),I'd be in a fairly good position by now