Hi,
on the post from yesterday, there has been an interesting exchange in comments, that made me think about how we see the money coming from crypto.
Most of us might hit a big reality wall on the next big dip, as the past year has been very gracious to us on so many crypto levels. We tend to forget that there have been some harsh years and when we will face another big bear market, we will see a lot of disappointed people, which had way too unrealistic high hopes.
The 2017 winter season was like 2021, with a lot of people rushing in, selling their houses to become rich at the speed of light. Summer of 2018 came and a lot of people went broke, as they've panic sold, as the token value was nearing zero. Most will come back to crypto, just because of this gambling mentality. It is a fallacy that can ruin their financial security and also the trust in crypto.
For example, there was a launch on Elrond (EGLD) the other days and the bots killed it. A lot of people lost millions, as they've bought at an unreasonable high price the launched project. This people are now disappointed about crypto and don't see the real value behind. Crypto is a financial revolution, which takes time and will mature in the years to come. It is still a toddler that needs to grow.
As we have 10x - 100x value gain in a couple of months, we face the risk to see how significant such a thing is. In the outside world, a 7% yearly increase is considered a good investment, just keep this in mind. 7% is nothing in crypto, so we treat it as something irrelevant, 10x, or 1000% in a year is something that we might see as the new normal, and this is a very dangerous thing. It might infuse us the spirit of taking for granted everything, even if behind might be countless hours of a team, research and development. Also, for a top investor, studying and picking the right project is a must. In crypto, we can run the shotgun method and buy in projects and still be successful, at least for the moment.
It is a fallacy because the markets are in constant change, and we might to see where we started the crypto journey and where we are now. One that made his first crypto with faucets 5 years ago, should not complain that he lost 50k USD on the last dip.
How do you see it? Do we take things too easy in crypto? Do we have too high expectations that we see as normal?