It's much easier to be HODLing if you spend more time BUIDLing new revenue streams and side earnings than you do look at charts.
My attempted words of wisdom for the day
So here we are, it looked for a while as if Bitcoin was holding up pretty well around $42,000, but that price now almost seems like a distant memory. Having plunged quickly down another 10k, we now find ourselves questioning whether or not we will soon see Bitcoin down in the 20s again too.
The bad news is, of course, that it now does look like we’re in a bear market and that the dollar value of our portfolios is likely just a fraction of what it was in November. The good news, however, is that you’re reading this article on Hive and are thus in the best place you can be for a bear market.
The Bear is for BUIDLing
Anyone who has been in the crypto market for a long period of time knows that bull and bear markets come and go. With them comes both euphoric insane price rallies and new ATHs, as well as fear and depression installing falls and periods of decline. The trick, in most people’s opinion, is to simply get used to it, accumulate the assets you like and believe in, and then HODL while riding the waves. Admittedly though, this is not always easy to do in practice, as our emotions are powerful drivers of actions, actions which unfortunately tend to be poor when under the influence of fear. So what can we do to make it easier and less painful to HODL? Well, to BUIDL!
https://twitter.com/FAarrestad/status/1484872309487943681?s=20
- FAarrestad
Seeing my Twitter feed filled with FUD and despair due to the falling crypto prices, I felt like sharing my own advice.
It should be obvious that looking at the big bad red candles and double-digit negative numbers on coinmarketcap or in a portfolio tracker is not a source for mental happiness and well-being. Nor is frequent exposure to those emotions going to help you HODL. So naturally, moving your attention over to something else is a good start. And what else could be better than to focus on building new revenue streams and side hustle income that can then allow you to buy more while prices are low? From purely a financial perspective, that is the optimal thing to do. You can’t control the overall market and thus prices of the coins anyway, but you can control your own effort to earn more and thus make yourself better able to take advantage of the many opportunities that come with lower prices.
You could say that Hive provides the perfect safe space for crypto-copers during scary bear markets.
Some perspective
It’s also worth mentioning that at this time last year, the price of HIVE was just 0.14$. This means that if you hold the same amount of HIVE today as you did then, you would still be up more than 450%. And that’s before accounting for how your HIVE holding may have allowed you to earn more tokens through different means during that year.
The price of HIVE as seen on coingecko the past year. As we can see, the price we are at today is still quite high compared to where we have been.
So while it’s tempting to fantasize about the profits one could have taken at $3, that’s nothing but a hypothetical as realistically it’s very unlikely that one would have succeeded in timing the top. Additionally, it is only a source of frustration to compare one’s current set of actions with a hypothetical best scenario, of which there are too many to count in crypto with its high volatility. Instead, it makes more sense to compare one’s decision(s) with what one would have in the absence of those decisions. In the case of most users on Hive, the answer then is simple: We’ve done a lot better for ourselves than the vast majority of people out there who put just as much time into different social media and video games without any financial benefits to show for it.
Stay persistent!
I can understand that for many, seeing the displayed value of their post rewards go down compared to what some may have gotten used to these past two months may dent their motivation to stay active. However, I would argue that the obtained value from engagement on Hive is unlikely to change much and that the only difference is that you’re not guaranteed the same result. What I mean by that is that your earned Hive tokens, assuming you were always buying HIVE with your post rewards and Powering up, are just as much now as before. In fact, it may be more valuable now, as lower prices tend to result in fewer people posting less often thus making rewards from the reward pool available to you greater.
Assuming that you have no plans to currently sell your HIVE rewards, and assuming that it will at some point in the future be worth $3 or more again, then it doesn’t matter if you earn them when prices are low versus high. The only difference a high price makes is that it provides the guarantee of being able to sell at that higher price. But as long as we believe that such a higher price will eventually come, then for now it matters not. We have already seen this before, as I pointed out in late March with my post Being persistent and consistent pays off - A good reminder set by all the Hive hustlers after HIVE had reached $1 for the first time after months of idling sub $0.2. The point there was the same, that those who never stopped posting, engaging and hustling whilst powering up during the year before was in practice always paid for their effort as if the price of HIVE was worth $1.
Conclusion
The conclusion is simple, a lower HIVE price and resulting displayed post pay-out may look and feel discouraging, but it should not be. Not only is it unlikely to matter in the long run, being on Hive and putting in the effort to accumulate and grow more tokens while contributing to growing the ecosystem here is likely the best thing we can do during a bear market. After all, the best way to HODL is to spend less time looking at charts and prices, and more time BUIDLing new value. If you then combine that with steadily buying in also when prices are low, then that’s the best strategy to grow wealth over time.
At least that's what I will do.