It's in your head!
I wrote an article two days ago discussing the downturn. In reality, I was more pointing at how we are still on a serious uptrend and we have recently had a small correction. I found some comments very interesting and they inspired me to write another post. The downturn really gets into people's head.
You are holding crypto
You are holding onto the mode of exchange of the future. Transactions will all be made on a blockchain in the not too distant future. These tools are continually developing and are becoming more and more commonly used as the days go by.
If you are currently holding onto cryptocurrency, you are among the early adopters and likely, just by holding onto it (as long as you are holding onto valid projects) you should see some gains over the long term.
If you have been holding onto crypto for the last 6 months, you should have seen some crazy gains already.
Gains?!?
This is where it gets tricky. Unless you are holding inflationary coins, staking, or in Defi, you haven't really gained anything. Let's take holding onto BTC for example, if you have 0.13 BTC, and have been holding onto it for the last 6 months, you have not gained any BTC. You still have 0.13 BTC.
The real issue is that most people are still concerned with how much fiat they could get for their cryptocurrency. We have all seen that Matrix meme... this one.
The point of the meme is to get you ready for the new paradigm. This shift in thought is to not think about your wealth in terms of how much fiat you have. It is futuristic thinking that will get us out of the emotional rollercoaster that the greens and reds bring to us on a daily basis.
Fiat
I think that fiat will always exist (or some crappy government blockchain version will take it over). This currency will likely symbolize the slave/master economy. I am sure that most of us can see it already. Working for fiat is a trap, one that is elaborately set up for us to work our whole life until we are no longer "useful" to those that run the economy. This will only get worse moving forward. Crypto, and embracing the new paradigm, is the door out of that cycle.
Through the door
So, on the other side of the door is a new paradigm. This is where we are free of the emotions of currency valuation. This is where we are active participants in a functioning economy... a vibrant ecosystem that is only at the beginning of development. Once we find our area(s) of value, we grow our own value to the ecosystem and end up, in turn, growing our wealth. They go hand in hand, as they should.
This is what is missing in the current economic system. Our value is usually far from what pays us. Or, a fraction of our value is what pays us a fraction of our worth. This is very intentional and why there is so much injustice in the world today.
In the coming crypto economy, there will be justice (as in fairness) and there will be a legitimate push for people to find their value. In order to free themselves from the shackles of the old slave/debt economy, everyone will need to find their value in the new economy. The beauty is that there are a ton of different ways to be valuable, and you can have more than 1,2, 3, 10, 200 ways to be valuable. You can be valuable by blogging, gaming, programming, testing projects, mining, lending, staking... this list goes on and on.
That is only stage 1. I am a skilled carpenter. I would far prefer to work for crypto than fiat. Once the crypto economy is more mature and robust (and free from the hordes of legacy economy trying to buy their freedom by playing the markets - ironically, that freedom will not come until the truth if realized), we can provide value in the world, away from the internet, and stay in the crypto economy.
It will be night and day where you plan to put your effort. You can work in the unjust system for an unfair wage, or you can work for crypto. There will always be shades of the legacy economy infiltrating this space... do not be fooled, watching ads for dust is not value.
Share the wealth
We have seen it time and again. People on the blockchain share the wealth. The way this blockchain works, we get a share of inflation. This means we get effortless gains. It also means we want to help give others a leg up. There are constantly contests where people are sharing the wealth. New users are given donations, generous upvotes, slinterland cards... whatever they need to get started.
This will be a growing and ongoing trend in crypto. It is the economy that will be setting people free from the doomed legacy economy. Once free, it is only natural to free others, right!? Right!
Red days, Green days
If you get happy on green days, you get sad on red days. I get crypto on crypto days and that is how I like it. Of course I like the green days, but they will always come along with the red days. I am focusing more these days on having an abundant mindset, practicing what I preach and accumulating more life changing wealth in the future economy while still surviving in the legacy economy. One day, I won't have to worry about that, but not yet. Soon enough.
Let me know what you think about all of this... I am very interested in hearing your thoughts on fiat vs crypto... green days vs red days etc. Thank you for reading.
Actually ... I prefer the Big Red days. It means I can exchange all my old fiat for more crypto than I could the day before.
Yes, the big red days are great for those who want to buy in.
This is a really interesting outlook on the future of crypto. I agree with you that aspects of the current financial paradigm will continue long into the future but I am hopeful we will see big changes in the coming years. The idea that people need to find their own value on the blockchain is valid. That's part of why I am here on hive and POB, not just trying to play the markets and failing through lack of knowledge and inexperience. That seems to be a trap that too many fall into when they first start diving into cryptocurrencies and chasing gains. A major obstacle to crypto going forward is going to be the fallout from the rise of all of these moon coins that have no real utility and take advantage of the wen moon mindset. When these coins prove their lack of value and are abandoned by their deflated followings it will make it even harder to convince the average person that crypto is still the way forward... As for red or green... I tend to take that part out of the equation by deliberately locking tokens in staking programs or liquidity pools so I have to think 2-3 times about it before I make any rash decisions.
I am the same way. I like having things locked up so there is more than one transaction and 1 minute to get things traded. LP's are nice too on red days... you are still earning more.
And we should start preparing for the future whereby crypto totally takes over....
Absolutely.
You hit it right on the head lol seriously. It's in your mind. So many people are short sighted and want massive gains TODAY RIGHT NOW! Otherwise they are out and call it a scam. You know who made it ? The people that bought bitcoin for $100 or less back in 2013 and held it believing in the project to this day. That $100 is now worth about $44,000. If you truely believe in crypto and what it has to offer you buy and you hold.
Now what makes POB and Hive awesome is you can do just that but you can also take an active part in it's growth and success.
Ya, if you hold on and believe in the project chances are great you have already made out like a bandit. If you can take on an active role in the project(s) that you believe in, even better! (That is why Hive is the best).
I'm putting fiat in at $45k and below so dips are good. I think if we go below $35k and stay there for a while, it could be the start of the next downturn.
Also keeping an eye on the cheap money situation. If unemployment benefits get cut or the interest rate rises, that would be concerning for crypto in the short term.
Ya, we are at an interesting crossroads at the moment in the market. Things could launch way up from here or, they could keep going down until some serious support... and we will see which direction from there. Dips are good, and 35K could still be bullish... it is so hard to call.
At least for me, part of what made the Tesla angle so interesting was that it was a very visible example of "you can buy a Tesla for 1.2 BTC!" paired with Musk's earlier statement that the company was not going to just turn around and turn the BTC from sales into fiat. Whether the post-game analysis reveals that it was just a publicity shitshow, or not, the new paradigm WAS — however briefly — in the greater public's face.
I have a pretty unworried approach to the ups and downs... much of it based on decades of involvement in a completely different paradigm: selling "collectibles" at auction on eBay. Markets are fickle. There are days when three collectors literally go to war to get something they really want, and it sells for 10x normal market value. On others you take a loss because on that day nobody was looking. My point? You can't be too attached to what happens on any given day (unless you want live with ulcers and insomnia!); instead you have to consider where you are ending up on average, in the long term... and the fact there is that it only takes a few "high flyers" to offset a large number of "meh's."
=^..^=
Ya, the next level is in sight, but major retailers need to accept this currency, and the rug was just pulled out from under it.
I have also sold a lot of collectibles on ebay (mostly sports cards) and I am very much aware of the way it goes. I suppose that I learned a while ago that selling things at a loss is sometimes better than holding onto it for an even greater loss.
The price instability is going to be a tough pill for retailers to swallow, for a while. Cryptos are a lot like foreign currencies when we travel... most people don't just think of the souvenir mug having a price in the local currency, they translate back into their own currency... in this case "fiat dollars/Euro" or whatever. It may take decades for that thinking to go away.
Precisely, you can't worry too much about losses on individual items! Sitting around losing sleep over "Shitcoin-3000" being down 50% is sort of wasted energy if your overall portfolio of 100 different assets is up 50%. And yet, many get freaked out and stuck there...
=^..^=
comparing where we are now and where we were six months ago I think we are still in a very good position price-wise. the panic is unnecessary but understandable.
I think this is a healthy mix and I people once people start to explore crypto a little more they will move further away from the fiat system.
I am still really bullish on crypto at this time. The planned FUD is pretty much proof that I am not the only one bullish. It is inevitable that more people will move more and more into crypto. It is a new economy that is only starting to pay people living wages (beyond investment gains)
His analogy talking about the unit quantity of BTC with FIAT was a beautiful example.
However, many people (the majority) enter encryption because of FIAT. Unfortunately. And many who come here for the first time without having had another financial experience of gains and losses (like the stock market) end up in fear...
All common conditions of the debt-based/slave economy. Once we get past the fear and the concept of gains and losses based on fiat, we can find our value and build it. It is a fascinating time we live in.