This space is young, but at almost four years of experience in cryptocurrencyland, I'd like to consider myself as much as a veteran as anyone else.
And, being a "veteran" has its luxuries. For starters, I don't have to worry as much about going through a new learning curve getting involved in this technology anymore. This is because experience has taught me that every single day should involve learning something new. And, if I don't feel that way, I'm probably waaaaaaay behind everyone else.
This pursuit has also given me a special perspective, especially in times like these. The end is near times. You know, the panic zone times. Apparently, if you are not currently worried about the state of cryptocurrency and its doomed future, you should be.
Not like this is anything you haven't seen if you've been consuming content anywhere on the interwebs...
Oh Noes...The Price Is Down...When Will It Ever End???
Well, if you have your doubts, do I ever have the plan for you. It's my six step plan to stop worrying about cryptocurrency prices.
Step 1 - Visit https://coinmarketcap.com/historical/
Step 2 - Locate approximately four years ago today. Click on it:
Step 3 - Locate approximately three years ago today. Click on it:
Step 4 - Locate approximately two years ago today. Click on it:
Step 5 - Locate approximately one year ago today. Click on it:
Step 6 - Locate today's date. Click on it. Then, reflect.
What do you notice?
- Remember the days when a one billion market cap was amazing? Yet we complain when we go below 40 billion today. It's not the comparison to fiat that ultimately matters, because fiat can be printed and inflated like no tomorrow. What is important to realize is that value is appreciating, and dips and sell offs along the way are inevitable. Ask anyone four years back how they would have felt about a $2300 Bitcoin.
Lesson: Some coins tend to maintain their value, even with temporary dips in price. These tend to be the ones with the best network effects, fundamentals, devs, and active communities.
- But, also ask anyone four years ago how they would feel about a $0.001 Freicoin today. They probably will not be as happy. As it turns out, coins come and coins go (cough The DAO cough). It's all part of the volatility of the market. It's normal -- It's a market after all.
- You have to expect the unexpected. All the skill in the world could have led someone to something like The DAO. But, it took one very skilled expert with seemingly tons of experience to tear it down. I remember participating in the crowd sale for GetGemz, a social networking attention economy coin. Around the same time, Ethereum came out. I can recall at the time thinking, meh, I'll kick a little both ways...let's see how it all turns out. I think we know who won that battle.
Lesson: Markets are a mix of skill and luck. It is impossible to be an expert of every single coin there is, so when investing, best to take a balanced strategy and not get too upset if any one coin folds.
- It is hard to look at the price of your favorite coin right now and not get discouraged when it is down in price. It is also equally as hard for you to remember your encouragement when it was up. Think many were disappointed in $10 ETH last year? Think all of us were super excited about $0.67 Steem? I remember both sets of posts around here. Ethereum was going to die because of the DAO. Steem was going to be up forever because we created the new paradigm. It's funny how sentiments reverse, yet we forget our past.
Lesson: We tend to only remember our bad beats, not our great successes. Both are incredible learning experiences that give our lives some context. They also allow us not to panic too much when things go bad and not get too cocky when things are great.
So, when I'm feeling the crypto blues, it always helps me to be humbled.
Whether it is looking at a little bit of recent history, or reminding myself of one of my favorite sayings, coming back down to Earth has always been great for me.
Grant me the serenity to accept the things I cannot change,
Courage to change the things I can,
And wisdom to know the difference.
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