“People, it turns out, are not that averse to risk. For many reasons, they are not opposed to risk, but they are opposed to losing and the possibility of loss plays a very significant part in their decision.” - Daniel Kahneman Some of my long positions has got liquidated. China has really given a tough blow to the crypto industry by banning all crypto transactions and declaring that all such transactions will be considered illicit. The People's Bank of China said, "Virtual currency-related business activities are illegal financial activities”. China is a big market for cryptocurrency trading and Bitcoin fell more than USD 4500 in the last 24 hours. The altcoins are also bleeding naturally as this market reacts very badly when the king tumbles. Cryptocurrency trading through local exchanges was officially banned in China since 2019 but trading continued through foreign exchanges. The latest crack-down confirms that China wants to shut down cryptocurrency trading permanently.
Honestly I wonder what does China think by deciding these actions. Because it certainly feels like they are loosening the rope and they will eventually hand out it to rest of the world, especially to USA? I think they are acting according to a plan they made, otherwise taking strong restrictions against crypto is just silly.
Volatility is in the nature of crypto, it doesn't seem like it will change in future too. I like how you connected it to quantum mechanics and invisible hand theory.
Volatility has always been there, and I've always felt like it was something that was meant to be. If we include people and their psychology, the market changes due to the news we receive and the constantly changing human decisions. Thank you for the article.
Without the interference of a central authority, it seems inevitable the crypto markets will always have more fluctuation and apparent "instability" than the traditional markets.
Our biggest enemy is ourselves. sometimes we think such stupid things that we panic because of them and lose money in crypto
Honestly I wonder what does China think by deciding these actions. Because it certainly feels like they are loosening the rope and they will eventually hand out it to rest of the world, especially to USA? I think they are acting according to a plan they made, otherwise taking strong restrictions against crypto is just silly.
Volatility is in the nature of crypto, it doesn't seem like it will change in future too. I like how you connected it to quantum mechanics and invisible hand theory.
Quantum Mechanics!
Volatility has always been there, and I've always felt like it was something that was meant to be. If we include people and their psychology, the market changes due to the news we receive and the constantly changing human decisions. Thank you for the article.
Without the interference of a central authority, it seems inevitable the crypto markets will always have more fluctuation and apparent "instability" than the traditional markets.
An investment is a long journey for me. And there are hills and pits on this road.
If I believe in this path, I will continue. If I don't believe you, I'll change my path.
I believe in bitcoin. If they want, they can do anything from fear, prohibition. It won't be effective for me.
Volatility can be scary, but it also brings huge gain opportunities. We must be careful and manage risk to take advantage of it.