Only a Bitcoin Price Crash Can Really Tell You Where You Stand in the Revolution
Only a Bitcoin Price Crash Can Really Tell You Where You Stand in the Revolution
Use this episode to grow.
Written by Sylvain Saurel - In Bitcoin We Trust
“I have complete confidence in Bitcoin. I am a Bitcoin HODLer no matter what.”
During a bull market such as the one started in October 2020 for Bitcoin, one meets many people who explain that they have total confidence in Bitcoin. These people have just entered this incredible new world and everything is green.
It’s easy to be a Bitcoin HODLer when the price of Bitcoin goes from $10K to nearly $65K in a few months.
HODLing Bitcoin in theory is easy
After you’ve learned more about Bitcoin, you may honestly think you’re a HODLer of last resort. However, this is all theoretical. As long as the price of Bitcoin is just giving you days with green candles, everything seems easy.
It even seems natural. Bitcoin is a NgU technology after all. So it’s only natural that its price will only go up.
You even end up thinking that the increase in Bitcoin’s price to the $100K mark announced for the end of 2021 will be effortless on your part. Then, all of a sudden, something happens to really test your faith in Bitcoin.
This is where the difference between theory and practice will test you. You thought HODL Bitcoin looked like a long, quiet road to a million dollars by the end of the decade:
A Bitcoin price crash can call into question all your certainties
I am talking about a Bitcoin price crash like the one we experienced on May 19, 2021. Within hours, the price of Bitcoin dropped from $43K to $30K. This drop in the price of Bitcoin seemed like it would never end for the new entrants who were experiencing their first crash here.
Panic suddenly gripped many people who thought they were Bitcoin HODLers no matter what.
Some sold their BTC at a loss. These people may not even return to the Bitcoin world for a while. Some won’t use this as an opportunity to grow when this kind of time is ideal for you to grow. Others have held on by surviving their first Bitcoin price crash.
However, their confidence in Bitcoin was put to the test. If they couldn’t bring themselves to sell their Bitcoin at a loss, they couldn’t accumulate more at a discount.
HODLing Bitcoin no matter what in practice is much harder than anyone initially imagines
These people will surely learn their lesson for the next Bitcoin price crash. Because I can already tell you that the price of Bitcoin will crash again. How can I be sure of that? It’s because Bitcoin is a free market, and that’s what free markets do. They leave it up to the users to find the true equilibrium price.
Under these conditions, there is a lot of volatility on the upside and the downside.
HODLing Bitcoin in practice would be more like running a race with obstacles that you have to overcome to win:
The price of Bitcoin has just reached $40K again. Not everything will be easy in the days to come, but this should prove to you, if anything, that this Bull Market is far from over.
The fundamentals of Bitcoin have not changed. The $100K mark is more than ever in sight by the end of 2021 in my opinion.
You must use this Bitcoin price crash to grow
This episode has already given you a better idea of where you stand in the Bitcoin revolution. It should also give you an idea of whether you are psychologically ready to be part of the Bitcoin adventure.
Either way, it’s something that will help you learn more about yourself.
It’s always in the hard times that you can learn more about who you are and your relationship to Bitcoin. At some point in the future, the market will enter a Bear Market again. I can’t tell you how long it will last or how far the price of Bitcoin will fall, but it will happen.
If you decide to stay in the Bitcoin world, and that’s what I hope for your future regarding money, you should already be preparing for this by continuing to learn more about Bitcoin. You will then understand that to take full advantage of Bitcoin, you need to take a long-term view.
In Bitcoin We Trust
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I love this. Everyone loves crypto until
Is down. Have a friend who was bragging about making a lot of money on Doge when everything was up. Never realized those gains so he has nothing now. Not too happy with his decisions but now he has to hold on.
Great article, as always. I's not my first crash and my previous experience taught me some stuff.
If you can work with dollar cost averaging you will be ready for everything. As soon as I start doing it I was way more relaxed and market volatility doesn't affect me as it did.
Before I would be constantly checking market prices. Now, every couple of days or so.
At helped a lot was entering the NFT market, WAX Blockchain to be precise, which taught me that hodling is the way and it doesn't matter if the market has fluctuations. If you do a good research it will pay off, one, two months later - I'm ready to wait years.
If you believe the NFTs you buy have value and you can hold, bitcoin shouldn't be any different.