Observations During the Storm

Yesterday wasn't the greatest day for cryptocurrency holders. I know because I hold crypto. But, sure enough, we rebounded a bit today. And, to be honest, there's no telling if it will continue going up, or if it will whip a u-turn and start heading back down. One thing I know for certain, though, is that nobody in this market knows what the heck they're talking about.

The Parade Effect

The majority of the articles you'll read online, and the bulk of the conversations you'll be apart of regarding Bitcoin and cryptocurrency are plagued by something I call "The Parade Effect."

For example, yesterday, when the markets were violently trending down, it was all too easy to hear others say, "The price of Bitcoin is tanking. It's down 52% from its all-time-high." I was getting texts, emails, and face-to-face questions about whether or not I thought this was the end for Bitcoin and cryptocurrency.

However, today was completely different. If you looked at todays price, we were "up," relative to yesterdays price. You didn't hear or see near as much FUD, as well.

The conversations that people have, the rants that people go on, the news articles that are written, and the videos that are recorded are just as volatile as Bitcoin's price chart. Everyone is constantly fluctuating between negative and positive emotions depending upon the price of Bitcoin.

What people need to understand is that they are only looking at a section of the parade:

• When you stand alongside the street during a parade, you can only ever see one section of it at a time.
• So, to witness the full parade, you must arrive when the parade starts, and to see everything, you must stay until the end!
• If you show up in the middle, you've missed everything that came prior to your arrival.
• And, if you leave too soon, you'll miss the end.
• Now, if the parade was meant to be one unified show, it would be necessary for you to show up early on and stay throughout. Otherwise, you would be missing key components of it, and you wouldn't grasp the story that the creators of the parade were attempting to tell you.

This is just like cryptocurrency. You see, most of us showed up in "the middle of the parade." We didn't get to see Bitcoin's birth. We just know when we got into Bitcoin and not much else. So, if we buy in at a certain price, and the price goes down afterward, that doesn't mean Bitcoin is down. It just means that, relative to when "we showed up to the parade," Bitcoin is down. If we were to have "showed up to the parade when it started," we would know that Bitcoin is actually up 900% since the beginning of last year. Most new investors don't see it that way, though. Because they "arrived midway through the parade," they just know that Bitcoin is "down" 52% from when they bought it.

In my opinion, if we attempted to grasp Bitcoin's full story, the whole parade, we would be far more comforted. We would see that Bitcoin, and many other cryptocurrencies, have been thriving. They've been some of the best parades this world has ever seen, in fact. We need to know that just because there have been some bad aspects of these "crypto parades," it doesn't mean the whole parade is bad. We just need to take a step back so that we can understand the whole story. That way, we don't have to stress ourselves over ever little "dip" or "crash".

Please, stick around for the whole attraction. It's much less stressful, and far more entertaining.