Friday Market Musings
We really are all human, aren't we? Yes, I know ... it's nothing new. But sometimes when you are musing about things, you have this "Oh YES times".
Photo by Pixabay edited in CANVA PRO
An example is what I see around me. The fact that we are in a bear market creates a negative attitude in many people. And that often causes a dump of tokens. Afraid that a particular asset will fall even further. By shouting loudly about it, several people are tempted to join the dump. Which makes it a fact, and the token indeed drops even further. The yellers think they are justified in yelling and having a negative attitude. Totally ignoring the fact that it's their attitude that hurts their portfolio, and not just their portfolio, but the portfolio of a lot of others.
You can say that they end up killing themselves the most. But what bothers me the most is that it is mainly people who don't show an ounce of insight. People who have done absolutely nothing to their own research, and people who are just completely over-invested in a project that they also pull down by their own doings.
I'd like to say, "What are they thinking?" But the answer to that will already be obvious to everyone. These people don't think! They expect that a project can continue to print out of thin air. To these people I would like to say, "Dear people, it doesn't work that way. If you want to know why that doesn't work, just look at the Euro zone" There money has been printed out of thin air and you are now seeing it reflected in a shockingly high inflation . The depreciation of the Euro is going fast, and yes ... you feel that well in your wallet if you are supposed to live in the Euro zone.
In crypto WE are in control
What is different in crypto than with fiat money is that in crypto you have a lot of control over what will happen. Yes, you understand that I don't mean that you can do a lot on your own. But, WE ... the people who invest in crypto do have a lot of control themselves. We can make or break something ourselves. IF we have done our homework and invested in the TEAM behind a project! That's possibly even more important than the project itself... You get what I'm talking about here?
If you want to invest in something, be sure to check out the team! What are they doing, what are the LONG term plans? Is there any development? How is their track record? And of course you can't predict everything with that, but if you have a team behind a project that wants to work their ass off for their project, then you've seriously won half the battle. If you know that you don't have to worry about a back pull, if you know that you don't have to worry about a team dumping their earned tokens on your head, then you're already a lot safer. And yes of course such a project token can still move with the market, so also down if we are in a bear market. Yes of course, no crypto is safe from a bear market. But knowing that eventually this bear market will pass and that team will still be there working on their project… that gives peace of mind!
The second example is of a different order. And is something I suddenly caught myself doing yesterday. I've been in defi for a while now, (thanks @leofinance for opening up that world to me), and I've been active in the same projects for a while now. And I seriously thought I knew all the ins and outs of these projects. Until yesterday I suddenly had to confess something to myself. I too have failed to properly conduct my research in one of the projects I'm involved in! And that cost me a lot of money without noticing. I even thought I was doing a good job compounding one of my projects every day...but seriously hadn't noticed that this project is a bit gamified. And if you don't compound at exactly the right time, you will simply lose some of your compoundings, and therefore also lose money if you compound at the wrong time. Ouch!
Now I can say that in this case it really isn't about hundreds of dollars ... but let's be honest, losing by stupidity of myself is just ... well stupid! By the way, this is the only time I'll say that out loud here! LOL!
Well, further musings… Anyone who follows the crypto news a bit has probably noticed that the SEC seems to have its sights on Ethereum. And that the SEC came out with the striking statement that Ethereum is completely under their control. The reason they gave for this was that the majority of ETH nodes are located in the US. And that therefore it can be said that all transactions on the ETH network are done within the US.
I admit that I was initially shocked by this message. But after I did some more reading, I actually came to the conclusion that this is really a ridiculous argument, in fact, it's one that they can never prove.
Not a majority
Currently, according to ethernodes, about 44.52% of ETH nodes are located in the US. And yes that is the highest percentage of all countries where ETH nodes are currently located. But 44.52% is not 100%. So impossible to say that all transactions on the ETH network take place within the US. In addition, the statement "majority" is also incorrect when you look at it as a percentage. Assuming 100%, the US is 55.48% short to be able to speak of a "majority".
And those 55.48% are located in many countries around the world.
Anyone outside US invited to start an ETH node
What can be concluded from this is that many more people OUTSIDE the US should start an ETH node. But hey, who am I? I only hope that somewhere in the near future we will see the flipping point come for Ethereum. The point where it will go up again. Or do I soon need to agree with @silverstackeruk? He has been saying that ETH will bottom out around $900.
Again, I don't know what will happen. And I just have to be patient, something with ... Wait and see! I'm afraid I'm already in the acceptance phase, and at the moment I'm really just thinking ... Oh well, it will bottom out! I only don't know when.
Anyway, I can't change a bear market. Governments all over the world are making a mess of it. Also a big cause of the crypto bear market if you ask me, I can't change that either. But at least let me be happy that I can still receive an x $ amount daily from different corners. That's at least more than what I was able to say for the last 8 years!