If you can't accept a 60% drop, you are not qualified to get a 6000% increase.

If you can't accept a 60% drop, you are not qualified to get a 6000% increase.

Digital currency has been a new global thing since its inception. Bitcoin first became popular in overseas geek circles and then was introduced to my country.
Therefore, every bloody storm in the circle is not only a great test for domestic investors, but also for overseas investors.
Faced with this sharp drop, overseas investors are also shrouded in fear and sadness, but there are also firm believers overseas who are encouraging and supporting everyone.
Next, I will continue to share with you an article written by a senior overseas investor. The following is my translation and understanding of this article:
In the past two weeks, digital currencies have experienced one of the most horrific crashes in history.
From heaven to hell - Bitcoin lost 50% of its market value, from $60,000 to $30,000. All this happened in 11 days. And in these 11 days, it lost another 34% ($15,500) in one 24-hour period!
At the same time, Ethereum's plunge was even more severe. In 11 days, it lost 60% of its market value, from a high of $4,384 to a low of $1,734.
Such price fluctuations shocked everyone. People were surprised that such a sharp drop in prices could happen in a booming bull market. It was simply another "corona crash", with the only difference being that there didn't seem to be any black swan event this time.
Why is this happening?
The simplest response is: just as hard as prices rise, they will fall just as hard.
When the price of Ethereum plummeted to its lowest point, it returned to the price 53 days ago, on March 29. Now (note: this refers to the time when the author wrote this article on May 25), its price has returned to 28 days ago. Bitcoin has fallen all the way back to the price 110 days ago.
If we get caught up in the two-week market chart, we will lose our sense of direction, but if we lift our heads and look at the bigger, longer-term price chart, we will find that this crash seems to be expected.
Bitcoin and Ethereum cannot continue to rise. They will change in response to changes in the macro environment. From the long-term trend chart, this plunge is normal.
I thought of two old sayings in the investment market:
The first is: A bull market must overcome fear. In a bull market, every decline, especially a sharp decline, will always make investors anxious. They worry whether tomorrow will fall even worse. And when we have accumulated slow and small increases time and time again, the market may ruthlessly wipe out all these achievements in one day.
The second is: stairs go up like stairs, elevators go down like elevators. In other words, when the market goes up, it always goes so slowly and takes so long, but when the market goes down, it comes as fast and violently as a storm.
This seems too scary, but that's how digital currencies work. The rise and fall are so asymmetrical and the rhythms are so different. It took Ethereum 150 days to go from $700 to $4,300, but it only took two weeks to fall to $2,650.
This is a beating, no one is immune, and it tests everyone's faith.
We must learn to endure pain.
An ideal investor should be calm, careful and not affected by emotions at all.
But we are human, we have emotions, we spend our hard-earned money to buy Bitcoin and Ethereum, and then we have to watch them go up and down in the market with fear.
In the traditional investment market, we can certainly remain calm when we get a 5% to 15% return a year; but in the digital currency market, we can get a 5% to 15% return just by reading an article, which makes it hard to remain calm.
I believe everyone has been quite excited in the past few months, but extremely painful in the past week. This is normal. Pain is inevitable. Because if you enjoy the excitement when the market rises, you must endure the pain when the market falls.
How can there be only sweet fruits? We must also eat the bitter fruits. This is a time to test our faith and a means for the market to abandon those who are not firm.
If you can't stand a 60% drop, you are not qualified to reap a 6000% surge.

<<:  WE DO Distributed Storage Consensus Innovation Summit and WorldDatabase Innovation and Advancement 100 Cities China Tour Launch Conference was successfully held in Chongqing

>>:  Data: $2.2 billion worth of Bitcoin options will expire this Friday

Recommend

Russian court reverses previous decision to block Bitcoin-related websites

According to TASS, a St. Petersburg court in Russ...

Should I buy Bitcoin now? Some people are holding half of their coins and selling half of their coins

CNBC's "Fast Money" trader Brian Ke...

Illustration of the children's line on the palm lines that can determine the appearance of children and the gender of the children

How to read the children line on your palm? The c...

BCH is about to hard fork Bitcoin's "eldest grandson" is coming

Since November 2, BCH (Bitcoin Cash) has been lik...

What does a lustful woman look like? Are you a lustful woman?

There are many lustful women in life nowadays. Th...

Coin Zone Trends: Bitcoin Price Trends Based on Big Data This Week (2016-12-12)

The price of the currency is high and it is still...

Vitalik's long article review: Those "roads not taken" by Ethereum

The Ethereum protocol development community made ...

How to tell a woman's face from her philtrum

The philtrum is a small groove between the nose a...

Analysis of the facial features of women with crow's feet at the corners of their eyes What does it mean if a woman has crow's feet at the corners of her eyes

A woman with fish feet at the corners of her eyes...

What does a real phoenix eye look like?

China has regarded dragons and phoenixes as auspi...

Judging from palmistry whether a woman can successfully marry into a wealthy family

In fact, every woman has a beautiful dream, which...

What does the "川" palm pattern mean?

The "川"-shaped palm lines are relativel...

South Korean cryptocurrency exchanges assess implementation of self-regulatory measures

Rage Comment : Yonhap News, a local Korean media,...

Not knowing how to use your free time

Many times, people will lament that they don’t ha...

Canadian mining plant Hut, backed by Bitcoin mining giant Bitfury, will be listed on the Toronto Stock Exchange at the end of August

According to Bloomberg, Hut 8 Mining Corp, headqu...