Crypto cycles should be (have been) one of the first things new investors learn about crypto. Right after the "How to invest in cryptocurrency?" guide. FOMO and FUD should be explained in there too.
That could help avoid the initial bad experience of a huge virtual or even worse, marked, loss that many new crypto investors experience. And then some will try to "catch the falling knife", thinking it's a dip. More experienced investors may be fooled when the market turns from bull to bear, but not when it becomes clear.
I lost money during my first cycle in crypto too, and so did many of the people I know. It is a sort of baptism by fire I guess. That hardened and prepared us for the next cycle, but maybe some of us would have learned from the experiences of others and not made the same mistakes.
Personally, I learned about the crypto cycles after I made my first mistakes. But it's been a crypto eternity since then.
There are voices who say this is the last crypto cycle. I may be wrong, but I think this was said about the previous one too.
I don't dispute that the cycle we are entering might be the last. I am not sure it will be though, but time will tell.
The theory is that as major players like Blackrock, Fidelity, Visa, Mastercard, and others enter the crypto space, that will trigger mass adoption. As that happens, we will have crypto assets go up like in a regular bull market or maybe even in a stronger fashion, but they will never come down 80-90+% in a following bear market, because the demand will continue to be high and absorb the generous offer.
I remember the same thing being said about the cycle we have probably finished, and yet crypto coins went down by over 90% in many cases.
Maybe that's because of the overlapping bad economic conditions. The crypto verse wasn't going to be allowed to appear publicly as a solid alternative when everything in the fiat world was crashing.
But that would be a different story by the next cycle. The economy would have recovered and more key positions would have been controlled by the right people. Would this be the last chance to buy low?
The logic seems correct in assuming that once mass adoption happens, the floor will get higher. And with behemoths entering the scene, the moment when that happens is closer and closer.
I have a feeling at that time some assets will take off while others will not. Cycles will be replaced by targeted investments. In some way, this is already happening... But the difference will grow.
