Dealing With Ptsd From The Last Bear-Run
I got into crypto at the beginning of the 2018 bear run. It was a dark time in the crypto space, to say the least. Many lost their investment to the ruthless bear run. This was after a bull market that had many people in a frenzy, selling their properties and businesses to buy magic internet money.
I spent the better half of the last 3 years listening to people complain about their losses. Even today, people are not short of criticism of the crypto industry. I attribute this to the woes of the last bear run.
To put the 2018 incident into perspective, imagine what a 90% loss would do to your portfolio right now. In my case, my portfolio will go down to a couple of dollars. That's a huge loss and there is nothing that can prepare anyone for such a catastrophic event.
It is all fugazi
2020 marked the beginning of the bull market and overturned the losses of 2018. Investors who did not sell their position were able to recoup their losses. For new entrants into the industry like myself, we had reasons to smile at the bank. A lot of people made life-changing money during this period. Despite the gains of the past two years, many people are still stuck in the trauma of the bear market. They never got over the shock of 2018 and this has influenced all their financial decisions
It's been almost two years since the rise of cryptocurrencies. The crypto industry has gained popularity during this time, onboarding millions of people across the globe. We've had the DeFi and NFT trend. We could say the industry has matured to a certain degree despite still being speculative.
The crypto sphere has had two years to prepare for what many consider to be an inevitable market crash. There is a lot of dumb money floating around However, in retrospect, there has never been a shortage of dumb money, even during the bear market. The only difference now is the media coverage. Nothing has changed.
DEALING WITH THE REALITY OF A SPECULATIVE WORLD
In a speculative world, most people do not understand their position which can be a cause of anxiety and fear. This is not exclusive to cryptocurrency only as those in the traditional financial system have to deal with speculation. Some of the top venture capitalists/investors I follow are liquidating their assets. The general sentiment in the market currently is that the world is heading towards another financial crisis. Thus, most investors react to the trauma of past experiences and the fear of the future.
I have been a victim of my fears and insecurities. In late 2021 I took out more than 50% of my crypto portfolio to reinvest in a venture I am 90% never going to pursue. During this time, I have tried to reinvent myself. This is to ensure I can have other options if being a content creator wasn’t viable anymore. I have lost time and money trying to hedge against what many consider to be inevitable. At the back of my mind crypto is and can never be enough, even though it got me this far.
WHY IS CRYPTO NOT ENOUGH?
Why is crypto not enough? Why do we seek solace in institutions and activities that have failed us many times? Why is a job that offers little or no opportunity to scale better than participate in a global community of innovators and investors? Because it is volatile? What isn’t? Have we forgotten the woes of the 2007 and 2009 global financial crises?
It is all fugazi
We will all feel the impact of a global financial crisis when it does occur, some more than others. This is because the world is connected, what affects one industry affects other industries. So the major adjust should occur in our mind and lifestyle. Letting fear and anxiety crowd our judgement robs our life of the peace it needs, leading (most times) to bad decisions.
I can't claim to understand what it means to lose 90% percent of my portfolio, but I have lost many things in life. Hit the rock bottom a couple of times. Been there done that, they say. I am not afraid of the future. There are endless opportunities even in the midst of problems. Keep building.