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A Lesson About Fear, Uncertainty and Doubt with Regard to Bitcoin Cash BCH

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Written by Β Β 183
3 months ago

Today is a pretty red day in the crypto world. Bitcoin Cash BCH is dropping despite the "fundamental" indications all being positive. Check these two articles by Marc De Mesel: NVT ratio of BCH near ATL and of BTC near ATH at the same time and Great Time to Flip ETH for BCH.

Marc wrote these two articles within the last two days. Those of you who have been following Marc for a while might know that he doesn't normally publish an article every day. The last article before these two was published already 11 months ago and it warned about a possible Corona crash in crypto and stocks. As we all know now, it would have been a great idea to read this article... (By the way, I wish I knew about him back then and had read his article -- that would have saved me from suffering very high losses...)

Marc's two recent articles describe indications that now is probably not a bad time to buy some Bitcoin Cash and he describes the conviction he has in BCH.

The story I want to share with you

What he wrote in his articles reminded me of one of my first stocks I bought when I started investing two years ago. Being excited about that stock was actually the reason why I started investing in the first place and unfortunately, I made a lot of mistakes in the beginning. So here is the story:

I bought this stock and was super excited about it. However, when the price kept dropping and I was down more than 60% on my position, the FUD -- which is short for "fear, uncertainty and doubt" -- started to get to me. That was especially true, because this happened within my first months of investing into any stock. And being a complete beginner who had no idea about position size or diversification, my position in that stock was way too big. I put about 80% of my net worth into it. πŸ˜…πŸ™ˆ

That was pretty much an all or nothing bet -- and I realized that only once my returns became more and more red. And I even received multiple warnings from my broker about book losses due to the stock price dropping and dropping. And everybody, whom I tried to talk to about it, told me that I was about to lose my entire investment. And that I should have shorted the stock instead. (Aren't hind-sight-traders the best?)

On the internet I read everywhere that the company was about to go bankrupt. That there was no demand for their products. And even if there was demand, the competition would bring new products to the market and steal all the company's market share. And the profit margin would shrink even further. And the company only burns cash...

I bought the dip again and again and again...

I had one sleepless night after the other. I felt sick all the time. I could not eat right. I felt like my life was about to end -- either financially by losing almost everything I own. Or physically, by worrying myself to death.

I kept checking the stock price almost every five minutes. And with every further drop, I felt worse.

Meanwhile, the shortsellers were celebrating their profits. I even unsubscribed from one YouTuber who kept rubbing his gains from shortselling this exact stock into the faces of his subscribers...

The company which I am writing about is Tesla.

What happened after all this FUD is well-known, I assume. The stock went to the moon. And then it continued to Mars. And once it got there, it built a base on Mars and it is possibly never coming back down to earth. We will see.

That may come as a surprise to many of you. That what I wrote above is actually what almost all people and the media said and wrote about the highflyer stock of the last year -- just one year before that happened.

So, obviously, I must be super rich now, right?

Unfortunately, the answer is "no".

So what happened?

As I wrote, I was so extremely worried about losing everything that I sold all the stocks I had -- once the stock started to recover. I'm glad that I didn't sell everything at a loss, but I started to sell way too early on the way up. Instead of multiplying my investment by more than ten times within one year, I ended up making about a 20% gain. 20% which easily could have been 1,000%. πŸ™ˆ

In addition to the modest gains I earned one life lesson: FUD is most effective when it comes from people who are close to you... After having asked my parents to borrow some money to invest even more into Tesla -- when I was still convinced that it was a good investment and I was still able to ignore the FUD -- they kept bringing up that topic over and over and over again. And they made sure to send every FUD article my way...

You might be wondering "why does this guy write about Tesla when the title clearly says the article is about Bitcoin Cash?"

Good question. Here is why:

Parallels between Bitcoin Cash and Tesla

Bitcoin Cash at this moment reminds me of the situation in Tesla 2 years ago:

  • Back then the FUDsters were saying Tesla would go bankrupt and the competition would overtake them soon with new products. And by the way, there is no demand for Tesla's products anyway. (They actually claimed that Teslas are being parked at huge parking lots and that nobody buys the cars...)

  • Now the FUD in Bitcoin Cash is that it will drop out of the top 10 cryptocurrencies and it will be irrelevant soon.

Another parallel:

  • Two years ago Tesla had already great products and very skilled people working for them.

  • As Marc described in his two most recent articles, the same seems to be true for Bitcoin Cash.

My conclusion

Let's hope the BCH price will parallel the recent Tesla stock development soon. And this time I will ride hodl and ride it to the top. πŸ˜…

I hope that will happen sooner rather than later. But I'm patient. It might take longer than I think. It might even become a painful time with lots of more FUD to come.

That's why I buy a position size which will not give me sleepless nights if that happens.

The hodl

If I had held all the Tesla stock I once owned, I would be a rich man right now. But the FUD -- and the subsequent relief that I was able to sell with a small profit instead of a giant loss -- combined with trying to trade the stock made me miss almost all of the gains I would have made if I just held -- or hodled.

If an asset is priced too low for very long, you can expect an extreme rise in price once it starts to correct its undervaluation. Maybe we will see this in BCH soon.

The rise might be slow at first and might seem almost vertical later -- which might tempt you to sell and buy back later for a cheaper price. But that's actually super hard to do right, because the price might not ever come back down and you might miss out on a 10x rise.

I wasn't prepared for such a rise a year ago. I hope I will be this time. πŸ˜…

And because today is another red day in the crypto world: This is a song for everybody who thinks about selling his or her crypto today.

Link to this video.

Previous FUD in Bitcoin

The following video is a nice compilation of all the times Bitcoin supposedly was doomed to fail. They quote the headlines together with the Bitcoin prices at the time. Compare these historical prices with the recent all-time-high above $41,000. πŸ˜‰

Link to video.


Keep in mind that Bitcoin Cash BCH is the Bitcoin how it was described in the original whitepaper. And it is the Bitcoin how it used to be in the initial years.

By the way: Happy Birthday Roger Ver! What better day to write this article than today!

Club1BCH

Come join us in #Club1BCH by earning or buying at least 1 full BCH and holding it.

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Comments

noise.cash'dan geliyorum.

$ 0.00
2 months ago

The issue with the dip is if the dip keeps... dipping. Rusty was here already!

$ 0.00
3 months ago

That is true. Buying the dip is only a good strategy if it is really just a dip. That's why it is important to know what one is buying.

In the case of Tesla, buying the dip was a great idea. In the case of Tailored Brands (bankruptcy) and Wirecard (balance sheet fraud and then bankruptcy) it was a terrible idea.

In the crypto space it is probably similar and I think BCH is more Tesla than it is Tailored Brands or Wirecard. 😊✌️

That's why I'm optimistic for the long run. 😊

$ 0.00
3 months ago

Thanks for the assurance, I need it right now since I am starting to panic after seeing the red lines day by day. Better days are on their way!!β˜ΊοΈπŸ™

$ 0.00
3 months ago

I'm sure, we will have better days. Panic is rarely a good advisor. πŸ˜‰

As my position is not too big and I don't need the money very soon, I just relax, hold and possibly buy more if the price keeps dropping.

$ 0.00
3 months ago

I will hold on to what I read from you guys and I'll keep my faith with Mr. Ver and Mr. de Mesel😁

$ 0.00
3 months ago

Me too. As long as these two are still onboard, I feel very comfortable holding my position without worry. πŸ‘

$ 0.00
3 months ago

Yeah,😁

$ 0.00
3 months ago

I might not want to visit my wallet now! Haha! I like the first song displayed. Omg :) Haha!

$ 0.00
3 months ago

Yes, sometimes it's better not to look at the charts too much. That might make the fear, uncertainty and doubt even worse and you might end up doing something which you believe is better in the short term and which you might regret in the long term.

$ 0.00
3 months ago

Yup! Haha! I have done that too! Bought some xrp last time because I saw it dropping and it continue to drop for more. And I was like omg this coin is wth haha. And I just gambled and lost em. Just to make me feel better! Haha! I really never knew about the SEC issue before that when it drops to half I bought something just to try the coins. And omg! I am so sad that my first experiment is not successful. Well now I am seeing reds again! But I knew bch wouldn't fail us!

Ps. I really came back for the music! Dang LSS. And I still don't have a clue about tether. Haha! πŸ˜…πŸ˜‚

$ 0.00
3 months ago

Haha, yeah the music is sweet. πŸ˜πŸ‘ Do you mean that you don't know what Tether is or whether it can be trusted as a stable coin? Marc De Mesel is also skeptical when it comes to Tether. That's why I try to avoid it as much as I can.

I believe as long as people like Marc and Roger Ver support BCH, we have nothing to worry about. Just like I should not have worried about Tesla, because Tesla has Elon Musk...

$ 0.00
3 months ago

Nice....

$ 0.00
3 months ago

Thank you very much. 😊

$ 0.00
3 months ago

Your welcome...πŸ™β™₯️

$ 0.00
3 months ago

More reason to relax, HODL, and grab this opportunity to buy some more while BCH is still on sale. Honestly, your experience also happened to me in 2019. The difference was I only had $10 in my wallet. Lol.

I bought BTC before and had almost 50% gain until the price crashed and as someone who had 0 ideas what I was doing, I decided to sell everything to secure my capital. Before that, I was supposed to buy more BTC but after that crashed, I pulled out everything and delete the wallet for good. Lol.

But now, I'm no longer that person. Besides, I trust BCH that it will go mooning soon. I'll just enjoy the red days first and buy more until I have 1BCH. 😊

$ 0.00
3 months ago

That was a valuable experience which made you a better investor. πŸ˜ŠπŸ‘

Let's sit back relaxed and hodl together. πŸ‘

$ 0.00
3 months ago

Just like the others, seeing red lines makes my heart leap a bit. That mild panick, almost like a heartattack, feeling is something that I experience everytime I see red lines. But with this kind of article that reassures, I think I can get a good sleep tonight. Thank you for this.

$ 0.00
3 months ago

You're very welcome!

I can still remember how terrible I felt the first time that happened in my life. I felt like the dumbest person in the world for having bought the stock. I believed that I would lose all my savings, I was worrying so much that I felt sick all of the time.

And in the end, it would have worked itself out to an amazing result if I just stayed calm and waited a couple of months. Sometimes I wish I had been in a coma during that time and therefore, would not have been able to sell the stocks once it recovered. πŸ˜‚

I would have woken up a pretty rich man if that had happened. πŸ˜‚

$ 0.00
3 months ago

That is actually a more regretful moment that happened to me. Selling a coin so soon not knowing it will double its price just after a few weeks. What a bust!

$ 0.00
3 months ago

Yes, I can relate to that. I keep regretting having sold Tesla at these ridiculous prices as well. πŸ™ˆ

Hopefully, I will be able to accept that happened now that I wrote an article about it. πŸ˜…

$ 0.00
3 months ago

Exactly! I mean "Experience is the best Teacher". We just have to learn from it and hopefully never do it again.

$ 0.00
3 months ago

That must have been very frustrating, checking the chart every 5 minutes πŸ˜‚ but at least you still gain 20% after waiting for long, maybe you were just unlucky not to have 1000% gains πŸ˜‚

Let's hope the BCH will be like Tesla parallel, but I believe in Marc because he also tackles about Tesla on his yt.

$ 0.00
3 months ago

Yes, I believe that he sees in BCH a similar potential to Tesla 2 years ago. Reading his articles reminded me so much of that situation that I had to write an article about that. 😊

Being 60% in the red with such a big position were really horrible months. I believe I aged 10 years in 3 months during that time. πŸ˜‚ And looking back at it, I could have just laid back, done nothing and enjoyed the ride up. πŸ™ˆ

$ 0.00
3 months ago

Hahaha, funny that you aged 10 years that time 🀣🀣

And now, you receive $1000 tip again woohoo! Your 20% gains in tesla have been added 🀣 Congratulations πŸŽ‰!!!

$ 0.00
3 months ago

what would you think would be an appropriate valuation for BCH then? i know that's a tough question. i'm just picking a lot of people's brains these days.

do you think drastic increase in price will effect BCH's ability to help those in parts of the world where it is becoming more and more of a necessary store of value?

$ 0.00
3 months ago

These are really interesting questions.

Personally, I will hold BCH at least until we see 4-digit prices per 1 BCH.

Recently, Marc De Mesel said on Twitter that he expects a price of $10,000. I think that sounds reasonable and realistic.

I have never considered your second question before, but if I'm informed correctly, the transfer cost is 1 Satoshi per Byte. If the price increases, these costs will increase in Dollar.

But as far as I can tell BCH will implement any changes necessary to keep the costs down as much as possible. So I believe that they would increase the maximum block size in order to reduce the cost again.

Otherwise, famous supporters like Roger Ver will stop promoting BCH and look for another solution.

I'm curious to read what you think. 😊

$ 0.00
3 months ago

yeah, i'm not worried about fees so much as the ability to maintain or grow investment in areas that don't have the necessary capital. say BCH does hit $10000, that's good for holders, bad for buyers. and who are the holders going to end up being?

i guess i'm worried that BCH may follow the same trajectory as BTC, and that might be okay in the long long run, because it will still be easy to transfer and use even if at a high price, and you can break it down and there would be no issues managing 1000 satoshis at a time for example.

but in the short term, in the here and now, there are parts of the world that are using BCH because it is transformative. i don't want speculative interest to crowd out the benefit in areas with currency destabilization for example.

basically, i want BCH to be cash, not an investment vehicle.

but it's a brave new world, and there will most likely being growing pains.

$ 0.00
3 months ago

Lol. I can relate my self with thing that checking an assest every 5mins. πŸ˜…. It's so stressful to your stock to be down like going to bankrupt. But atleast you still gain 20% of it. Nice article most of us here will relate in this situation. And hoping that bch will going to pump again and be ready for it. I will ready mine too , 😁😁.

$ 0.00
3 months ago

The first crypto that entered my wallet BCH was also from noise.cash

And I am now getting to know read.cash Now my wallet has several types of crypto

$ 0.00
2 months ago

Very informative article

$ 0.00
3 months ago

Sorry to say it, but we have to agree that PoW systems has great chances of becoming irrelevant in the face of new technologies, especially PoS and the whole DeFi system.

But anyway, good luck hodling! :)

$ 0.00
3 months ago

Great artical ; your brother from syria love your artical

$ 0.00
2 months ago

People will always in two minds with regards to cryptocurrency as general. With more Awareness Projects, we could convince them to patronize crypto especially Bitcoin Cash.

$ 0.00
2 months ago

Ever since I hodl BCH, I never doubt it. I don't even look at my wallet, I just sitting pretty herr and waiting for it to rise again. I don't even feel anything about it coz I know and I have trust to BCH.

Anyway, 20% gain is also good compare to nothing right, if it's me, I don't know I might lose it all especially if I know nothing much about it.

And by the way, congratulations coz once again You are noticed by Sir De Mesel.

Fighting πŸ’ͺ

$ 0.00
3 months ago

Wow

$ 0.00
2 months ago

Thank you so much and of course, I would like to thank Marc De Mesel. I feel super honored and grateful. 😊

I believe that as long as BCH has Marc and Roger Ver as supporters, we have nothing to worry about. I will hold my position even if we went back down to $100 as long as they still support the project. And I will be buying all the way down.

The money we earn might be compensation for personal injuries -- first we might suffer the emotional injuries from a potential drop and then the money arrives. πŸ˜…

PS: I don't think BCH will drop that low. It might start rising again tomorrow. Who knows...

$ 0.00
3 months ago

Yeah, just as long as we have that two we have nothing to worry about. But some can't really stop their self from worrying no. But well it's not surprising coz it's their hard earned money so that's that.

I know right, and I'm also sure it will pump again non-stop.

$ 0.00
3 months ago

Hi please check my link too and support me https://read.cash/r/Cryptobox I love you

$ 0.00
2 months ago
$ 0.00
2 months ago

I am new Friend p;z help me

$ 0.00
2 months ago

Okay, calm down Jocelyn. Be a good girl and remember you just read, now look in your account with a smile that it will soon the reason you will smile more brighter more than it put tears to your eyes. πŸ™ˆπŸ€©

Say thank you Martin. Thank you Martin. 😁

$ 0.00
3 months ago

You're welcome, Jocelyn. 😊

To be perfectly honest, I don't know how much more red we will see. We might drop to $360 or even further before going up again, but I'm convinced that Bitcoin Cash is a good investment in the long run. The questions are just: How good? And how long is the long run? πŸ˜…

$ 0.00
3 months ago

I'm seriously in my panic mode. πŸ˜‚ I had a good drink last night to sleep lol

$ 0.00
3 months ago

I can definitely relate to that. I was worrying sick with Tesla. And if I look at the chart now, it all seems so ridiculous in hindsight. πŸ˜‚

I should have just kept my cool. But while you're going through that, it is very hard not to worry.

$ 0.00
3 months ago