Dear Crypto community,
I don’t usually take the time to make posts like this but the latest BTC rally has made mij think through certain aspects of cryptocurrency which I would like to discuss with the surplus of the community.
Wij are all very excited about our amazing gains and sick BTC profits, yet something does not feel right to mij (anymore). While liking my BTC profits, I couldn’t help but notice that the few alts that I still held (mostly because I truly believe/support the projects) got fully wrecked. A 7% BTC increase overnight made for a druppel ter alts inbetween 25% and 50%, violating major support lines across the houtvezelplaat. Big players dumped their remaining positions, setting ter movability a snowball of zekering losses and what not. This quickly results te petite BTC gains (%-wise) being offset by major losses te altcoins. This took mij, and without a doubt many others, fully off guard (meaning, I never thought the altcoin losses would be this big).
It has come to my attention that people have and are losing faith te altcoins all together, and I don’t blame them. Most altcoin purchases made with BTC ter the last duo of months have bot nothing but a bad investment unless you traded them for more BTC shortly after. Even if your altcoin is still up ter dollar value, you’re still faced with a massive loss of potential profits ter BTC. I can’t even imagine how people feel who bought real life stuff with BTC, they basically overpaid their products massively. This makes mij question if BTC will everzwijn be able to function spil a real world currency. People like to address this punt with pointing out that it will get less volatile when the market matures but I feel once wij everzwijn reach that point, every BTC pair out there will have bot killed off totally. On top of that, Crypto is creating a market of traders and, people who everzwijn thought of investing ter anything else than btc, quickly find themselves becoming traders because the volatility can literally cut your investment te half overnight. Everything is hyped and whenever good news is released, shit is massively dumped shortly after (typical trader mentality..)
So my questions to you people are:
1) How do you cope with the extreme volatility te BTC when investing (or trading) alts?
Two) Is there such a thing spil a long term investment when it comes to alts (or even BTC)?
Three) Is BTC’s volatility productive or counterproductive when it comes to promising altcoins and their development?
Four) Do you think BTC will forever be able to play out its very first mover advantage (spil going by fundamentals, it’s actually far from the ‘best’)
Five) Do you think BTC will everzwijn be anything more than a speculative digital asset used by high volatility traders to long or brief eachother to dead?
6) For those of you still holding alts, what if BTC goes to 10k end of year?
You can of course choose which question(s) you response. Spil for mij, I’m leisurely switching my positions to USD and will proceed to do so if BTC keeps going up. While I’m certainly loving the profits made, I feel like I got fooled into “investing” ter altcoins, whereas altcoins should evidently only be traded. The thing is, I never intended to become a trader and stare at my rekentuig 24/7, or opening my Blockfolio every morning being panicked what might have happened to my positions. Reflecting on it now, I made money but at the same time I lost sleep, happiness and lost track of the things I like to do ter my free time, all due to crypto. Time to take a step back, love life again and my profits! I’ll keep an eye on crypto and my remaining BTC but I’m done with trading and if I can’t invest without fearing to lose 50% overnight, I will stick to more secure ways of investing.