No one expected that this year's bear market would last a whole year. The assets of each holder are greatly diminished, and it is difficult to decide whether to continue holding or cutting meat because it is impossible to know how long the bear market will last. Jimmy Song, the core developer of Bitcoin, tells you how to take advantage of profit opportunities and in what posture to cross a bear market.
First, why does Bitcoin always fall?
During the bear market, many people became nervous, at first, the bitcoin fell not so bad, they just felt a slight anger, and then, the bitcoin downlink lasted one weeks, one months, a quarter, everyone became frustrated. People buy Bitcoin because it is expected that bitcoin will appreciate, at least to ensure that it does not cheap too much.In a way, we all expect it to be a linear ascent, and the positive returns of 50%, 100%, 1000% over the past few years have been normal for bitcoin, and it is hoped that this good will continue.
In the world of investment, however, nothing is linear, including Bitcoin. Everything is likely to be rapidly changing, and it is normal not to catch it, just as Bitcoin has experienced a plunge of more than 80% per cent in the event of no warning. In fact, people feel depressed the main reason is: everyone has the desire to get unearned, if Bitcoin has been rising steadily, there is no need to go to work to make money, Shou it can lead to wealth freedom.Let's take a look at the drawbacks of a bear market.
Second, why doesn't everyone like a bear market?
First, financial pressure, a bear market let your assets evaporate inexplicably. If you fry futures or like to hedge, a bear market will let you wander on the brink of bankruptcy and wait until you run out of money and you're out, which is a bad feeling.Investment, the first rule is to ensure that it is not eliminated, and a bear market is the best time to test this rule.
Second, social pressure. When Bitcoin plummeted, there were always big V and economics experts coming out and telling you, "I've told you bitcoin is a bubble," and sometimes even family members come out and blame you. When the bull market, we all hold you, boast that you will make money, and bear market, only to be trampled on, criticized.
Third, there are fewer opportunities to make money in a bear market. When the bull market, there is money all over the time. A lot of startups are hiring, with low thresholds and high pay, and you can easily earn a few times as many as you did before.In a bear market, money is not so well earned, and previous plutocratic projects have begun to shrink their budgets.
Third, why do you say bear market benefits a lot?
First, bear markets eliminate bad investments in the bull market. In a bull market, many uncharacteristic projects can easily blend money into the vents, and some can even reach 100 million of dollars with just one white paper. In the past year or two, this irrational way of investing has been a normal phenomenon. Now, junk projects are pulling out of their horizons, which is a good thing, because the resources they once occupied can be used in more useful projects. According to Austrian business cycle theory, intermittent market adjustments will allow some companies to move in a better direction. In other words, money flows from the bad guys to the hands who know what they're doing.
Second, a bear market tells everyone what is most important. Under the pressure of a bear market, something useful can survive. Only a bear market, people will be careful, rational choice, at this time the real value of things will be taken seriously. People no longer IC0, they stop messing around and stop mindless blowing.The market will become smarter and better Capital allocation will create a more prosperous market.
Third, bear market it teaches you how to work hard. Just now, it's easy to make money in a bull market, and it's easy to get jobs.And in a bear market, if you're going to make money from work, that means you're going to be a really valuable person, to put your strength on the table, or you'll have to wait to be laid off.
IV, a bear market nurtures your character. I believe many people have envied those who have known and bought Bitcoin for a long time, and feel that such people are lucky.But in fact these people rely not on luck, but on faith.
From 2010 to 2011, it wasn't long before Bitcoin came out, someone bought it, and a lot of people sold it, because for the latter segment of the people, Bitcoin was a collection, a speculation, a gamble. Without in-depth knowledge and disbelief, they all get out of the car, and the bear market comes with it. When an investment product falls by 80%, will you still take it? In a bull market, it's easy to say "yes." But the people who can still hold it through the bear market are entirely based on faith. You have to make sure your finances keep you alive, so you can't buy as much as you used to, and you have to plan for the future carefully and stick to your values as always. The bull market gives you all the space to give up this, but the bear market makes you make it all back.If you can keep learning and planning in the toughest of times, you can successfully cross the Bulls.
Iv. End
A bear market is a part that all economies will face, especially when there was a lot of bad investment in the past.It is only when people see what is important and reallocate resources to something of value that the market will develop in a benign direction.
In the digital currency field over the past few years, there have been too many investment, cognitive deviation, and this time really need to adjust, although the process is very painful, but also very worthwhile, because as long as you survive this gray day, the next bull market will get a generous return.