Today's Most Important Bitcoin Reminder
One of the most important things to be able to do as an investor in the bitcoin and crypto markets is to be able to constantly evolve and learn from your mistakes. After all, if you don't learn from your mistakes, you are destined to repeat them. The mood in the market has changed recently, many considered that we were on the brink of a certain bear market, to more of a positive mood that maybe the bull market is back on track. A large reason for this is that the Luna Stablecoin UST has begun buying enormous amounts of bitcoin to make their stablecoin backed by BTC. This has of course led to the price of bitcoin increasing, and they still are early in the game of accumulating for their stablecoin. They are planning to spend billions in the near future. This is an interesting development in the world of bitcoin. Throughout the last year, we had all been talking about bitcoin possibly being a safe-haven asset against inflation, that more and more corporations would be putting bitcoin onto their balance sheet. That more countries would follow-suit with El Salvador and make bitcoin their legal tender. But, almost no one was talking about bitcoin being used to back Stablecoins. This is just another aspect in a long line of many that will continue to drive demand for bitcoin.
While the mood in the industry has changed, and we are all once again thinking that we might just make it to the moon like we've been dreaming about. The reality is that bitcoin and crypto is still hanging on the edge of a cliff. With the macro situations happening around the world with the Russia/Ukraine situation; anything could happen. Further bad news, announcements or results could send the prices tanking fast. On the other hand, good developments could pump the market as well. Then taking into account the other bullish news that is happening above and it is truly an exciting and also dangerous time to be investing in the markets. Everyone should understand the risks and invest accordingly.
With that said, as we reach certain impasses in the market, that is when I like to take a step back reflect on my personal situation, investing philosophy and also the things that I'm doing well and could improve upon. There are definitely ways that we could all be doing better than we already are.
As I'm reflecting, I'm thinking about all of the YouTubers, traders and influencers who were panicking as bitcoin reached $32k just a month ago. These people were claiming that it was all over. That we should cut our losses, get into cash, wait for the market to bottom and then buy back in. That this would be a multi-year bear market. Basically saying goodbye, and that they'd see ya in a few years. It was definitely an understandable opinion to have. After all, the whole Russian/Ukraine situation was breaking out as I was mentioning above. Not only that, but the market was panicking about the FED raising interest rates to combat against inflation. It seemed that day after day we were only seeing bearish news and FUD hit the market. It can make anyone fear bearish and want to sell.
Why would you trust someone who makes faces like this on their thumbnails?
Even though we aren't out of the woods, and anything could happen, the mood in the market has changed. Based on that Luna stablecoin purchase of bitcoin, the price pumped to over $43k before retracing. And that is only the beginning. They will continue to buy more bitcoin to back their stablecoin and there is other bullish news to take into account as well. El Salvador will soon be purchasing billions of dollars worth of bitcoin for their bitcoin backed bond. Another development that will move the price of bitcoin.
The point is this. All of these influencers were pleading with their followers to sell. And because they have a large following, many people listened to them and also sold. They are waiting for that inevitable perfect price bottom that may in-fact never come. There is a real possibility that the price of bitcoin could continue to go up. If it does, these people who sold will have lost out on a lot of their BTC holdings. Potentially never being able to re-accumulate the bitcoin that they sold. And if they do, it will cost them a lot more money to do so.
Bitcoin is an asset that could potentially oust gold as the greatest store of value asset, and could also oust the US dollar as the world reserve currency. After that, the sky is the limit. It is an asset that rewards you for saving. Anyone who has been holding onto their bitcoin for longer than a year is in the green. People who have been holding their bitcoin for multiple years are heavily in the green. Bitcoin is one of the scarcest assets out there that will only become more scarce as time goes out. It has the potential to change your life financially. And that is why you would be a fool to try to time the market. Most of us are not traders, and we shouldn't even try to be. For most of us just buying and holding is the best option. Then there are ways to make that bitcoin work for you and accumulate even more. Such as lending it out to a 3rd party service.
Be careful out there. Trust no one, but yourself. But in order to trust yourself, you need to put in the work and research heavily. Don't take what the YouTubers say as gospel. Don't even take what I say as the truth either. Society has been spoon-fed information and told the correct way to do things for so long, and that is why people are so ready to do whatever YouTubers advise. Bitcoin and cryptocurrency are markets that reward those who put in the work. But it also brings back self-responsibility and self-reliance.
Always look at bitcoin in the long-term and not the short-term. Each day that bitcoin's blocks are mined is a bullish day. And we are living in bullish times.
How about you? What mistakes have you made? Do you let YouTuber's form your opinion and make decisions based on what they say?
As always, thank you for reading!
You nailed it with this one. A lot of these YouTube influencers are nothing more than "actors" preying on the psychology of their followers for their own benefit.