The Trouble With Crypto
Let me make this statement before I dive into this article...
I'm an idiot when it comes to this crypto stuff.
That's why I like hanging out and reading all the content on Hive because for a tech-ignorant like myself, it's great to get a feel for what everyone is talking about in this space. So when the markets took a massive hit this week, I'm sure I wasn't the only one...That started checking out all the posts on @LeoFinance
Luna, Terra, Polygon, Solana...I have no knowledge of any of it. I'm in my Hive bubble. Which is a blessing and a curse, but again, trust me when I say...I'm not an expert on what happened this week. However from an outsider looking in, this is what I have seen so far.
Everything still rises and falls with Bitcoin
For better or worse, we are attached at the hip when it comes to Bitcoin. If Bitcoin does good, crypto does good. And when BTC goes south, we all feel the wrath of the market. This simple fact can explain a lot of what happened with this week's sell off.
When a stablecoin isn't stable, all hell breaks lose
The Luna / Terra drama shows what happens when a stable coin doesn't keep it's peg. And when you think about it, you can't blame the market. A lot of these investors don't seem to care about use case, or the tech behind what makes something stable. So when it lost it's peg and the BTC started to flood in to compensate, two things happened...The stable coin, wasn't stable at all and the price of BTC started going down too. Confidence was shattered. No one wanted money in a stable coin that couldn't keep it's peg because that's supposed to be the 'sure bet' in crypto.
We always focus on the wrong things
Hive being down hurts, it does. However the ride or die community members that have been here before won't stop using this stuff. We'll still show up, put in the work and continue to build. Meanwhile in the 'crypto space' people are losing their minds because they only look at price. Hive and it's related projects are special because the use case is first and foremost here. Community is what matters and when you combine that community with use case, good things happen especially when things start going downhill.
These are a few of things I have noticed this week and it makes me wonder....
Will it ever change?
Will actual use case and community be the things that blockchains are measured on, or are we stuck on price forever?
Will projects get away from being attached to the hip of Bitcoin? Or are we destined to rise and fall on it's price?
Will projects like HBD get the shine it deserves because let's be honest, it's not a stable coin, we're a stable-ish coin and I think in crypto...That matters a lot more than being pegged exactly at 1:1.
Maybe the industry can learn something from HBD...Fluctuations aren't a bad thing, as long as the protections are in place to do whatever it can to stay close to the peg.
I dunno....Again, I'm not the smartest guy in the room...
I saw a tweet from @khaleelkazi earlier today that really struck a chord with me:
You read through this thread, you hear about people losing their entire lives over this crypto stuff and you just hurt. I believe this is why being attached to projects just because of price is so dangerous and why we should never spend a dime that we can't afford to lose.
I have to put this into perspective and make sure I always enjoy this stuff! Crypto is supposed to be fun. Sure we all want to see Hive and these projects go to the moon, however we shouldn't forget why we are here. I'm here to change industries, help change the world and help my kids grow up in a world that puts people first...That's why I love Hive and if we all look at it that way...
I dunno.
Wishing thinking...
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Well said and thank you for saying it.
Thanks for stopping by, glad you enjoyed it!
!CTP
👍🏻 Good statement Jon! People first and never in invest what you cannot afford to loose. Many people don’t respect that and let their emotions drive them nuts. Sad story, indeed.
So easy to say it, but very few actually follow through on it!
Exactly true. Same with anticyclical investing. When times are good (prices high, enthusiastic) people are talking about how they would buy more BTC or Hive once they came down. Now is the time but very few manage to control their emotions (now anxious and fearful) and really do it.
Money is one element of a happy life, the 1st element is loving ourselves and others. There are some who spend so much time seeking money on the outside, they forget to work on the inside.
It's been a rough week for many.
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It really has. Hope everyone pulls through in that community!
Thanks for stopping by WU!
Crypto prices are never stable so experiencing high or low price shouldn't be a problem but though the heavy downfall of price this week was surprising.
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It happens. It's crypto. Lots of ups but we need to be ready for the downs.
I hardly followed all the drama and was happy not have jumped on the Luna FOMO. The problem was that the supply was growing because of the algorithm and then UST was used for margin calls to leverage investments... A pretty dangerous mix. So not all projects are sound and high APR can also mean huge crash risks. I'm happy for every hive that I get and I just want more of them, not really caring about how much they are worth in USD...
I mentioned this on the podcast today, I literally...Had no idea this thing even existed even with being a top 10 coin last week. I'm in my Hive bubble lol
Woah!!! Felt like this post was made for me. This Luna saga that got peuple losing their life savings, truly grateful for my life and all I have got
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It's so important to remember what we're doing this all for at times like this. Heart hurts for those lives that have been ruined by this.
Jongo you have spoken well,I think this crypto dip will teach alot of people lesson most especially with what happened with luna.to be frank people are forgetting use cases while focusing on the price and that exactly what Luna investors are paying for.well thank god we are on hive where everything is been carried out well.
That's exactly it...I think when there is actual use case and not just price speculation, we can ride out the fluctuations!
This puts things into better perspective. Thank you for putting it out here. And all the more reason to be grateful being alive and here in Hive to read this and be reminded once again to live life as it happens and yes, to have some fun:)
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Truly is a blessing to be involved with such an awesome project here and community!
Couldn't agree more. And I hope those who have lost money due to the fall of some projects would still be thankful of their lives which is of course more valuable than money. And hopefully discover Hive if they haven't done so.
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I think people have a wrong and biased view of the market.
If in recent months it is said that Bitcoin collapsed because it went from $60,000 to $30,000, then when it went from $30,000 to $60,000, it was the dollar that collapsed.
Has anyone seen a headline in the last year the dollar collapses?
People lose their mind in crypto because it's so speculative. That's the biggest damage this TERRA / LUNA stuff cause, loss of confidence in something that was supposed to be stable.
I knew most of crypto was doomed when they heavily ignored projects like bitcoin myk and many other notable projects. Shells of human beings who are victims to their own superficiality and carnal perceptions.. however just remember.. bulls get slayed... bears get slayed but pigs get slaughtered
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I'm always bearish lol But then again I'm long term thinking for this stuff, not trying to make a million in one trade.
Let's test your philosophy
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Well said, if you're not having fun, then perhaps best not to invest.
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It's life changing stuff...It shouldn't be 'day trading' stuff ;)
Well, If you had to choose a bubble to live in, hive is a damn good choice.
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Not a bad place at all to build and be protected by our magical bubble :)
I totally agree with you on the thoughts about the market now, and nop! I disagree with you on being an idiot 🙄 because you're not.
If mnay would read this especially with the tweet you added, a lot will feel more sane and feel a need to continue in these hard times of the market.
This is a time to grow our community, our connection and our accounts on Hive... Engagement will keep our minds away from some thoughts anyways.
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I can talk about building businesses online and using crypto for it...But my goodness, dont ever listen to me when it comes to the tech side of things lol
The current luna dump has really taken the world into a shock for sure and we should really not rely on a project completely.
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I really know nothing about the project other than...It had a real bad week.
I am kind of glad that I avoid Twitter because I don't use my account at all. However, I do think it's horrible to see the things that happened. Then again, I think I heard people took their own lives when Evergrande had issues in China so it seems to pop up each time money is involved.
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Over extend themselves...For the dreams of instant ruches or making buckets of cash quickly. Not sure what it is...
Hive is built around the content, so the traders mindset may not work here, because traders expect instant results and manipulation if they want then even if you are a whale, this may or may not work that quickly like LUNA.
Hive requires some level of effort and involvement to make results worth it. So if Hive goes down it's one time event that is down, it may not give false hopes like LUNA guys are feeling.
I am not rich and so I have not a big portfolio in crypto. So this is not affecting me much. I have to just keep adding content, earn hive, that's all. I wish I could have big money to worry about, but so far there is not much on that part.
That's still...the best game plan around. And Hive provides it.
Keep showing up here, putting in the effort. Everything else is all speculative to me, but 'people' aren't!
After all this crypto bear market, it bounces back. Already some of them have risen 30%. Still way of the ATH at least there is more confidence. You should treat crypto as money you can afford to lose or win !
Absolutely. Nothing is promised tomorrow. So never 'gamble' with this stuff.
Greed and the idea you can attain wealth without work is a hell of a drug, this cycle is doomed to repeat itself over and over again. People will think not my coin, not me, I will know when to get out, sadly they wont.
It will be a good lesson in the long term, I try to teach people how to measure risk, no one cares, no one wants to listen lol
So I just shout in my corner and watch people burn themselves, point and laugh because it was avoidable and they deserve it
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deserver it...seems a little harsh. people are dumb and make dumb mistakes, but no-one deserves to be destitute, and everyone makes mistakes.
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Life is harsh mate, if you don't learn you have to get burned, no one deserves to be destitute unless they do it by their own hand, then ofcourse they do
absolutely...and they're lives can be harsh with them while receiving encouragement and positivity, especially from the person they seek financial advice from.
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That's what is so sad..No one seems to listen.
When I talk about Hive, the first thing people ask me is if it's on Ethereum. It's like it's the only game in town. You show them how this place is built and it's just ignored.
What a tough 4 days! Maybe we forget the fun part of being on cryptos. Have fun, take it easy and enjoy the journey. There will be hiccups, but that will not stop you from reaching your destination.
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It's been over a year of constant bullish sentiments in the markets...This was going to happen.
This UST debacle is going to hurt many people who were doing the interest arbitrage. Many definitely took on more risk than they should have because they were lulled into a false sense of security with a 'stablecoin'.
I lose out on a lot of opportunities in crypto cause I don't mess with that stuff...But I also like being on Hive and keeping things simple.
Same for me fam
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One day at a time, it's happening!!
I stayed in my safe zone and also got no problem with hive going low, I only wish if I got free cash I would have put everything on Hive, but nothing till now even after much HUstle but I guess commenting and upvoting are still there so I win
CTP!
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Never spend a dime that you can't afford to lose because if we've seen anything this week...People can lose it all.
At some point yeah, but probably not this decade. Enjoy your Hive bubble, it's a hell of a good one.
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Agreed. Nice little bubble that keeps me from danger lol
Always to grateful for what you have and at the end of the day what really matters is the people around you and the way you want to live your life and makes you happy. All this other stuff if fluff for the most part so never invest more than you can afford to lose.
For me personally this crypto stuff is now a side project that I love doing and I truly believe in it. But I'm ok with losing it all as I already invested what I wanted to (and maybe might do a little more if it feels right) Besides that though I'm constantly just building it through trades, stake, etc and not fiat anymore I did that many many years ago.
Crypto is high risk it's new and a lot of this so called stablecoin stuff is brand new. That sounds sexy and there are huge opportunities but with that comes high risk.
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Great approach man. All this should be fun, and an enjoyable experience. We lose that through all the noise.
Even if I had (still have, because they were locked for 14 days) some LUNA and UST, I can only imagine what those who lost a huge value must've felt. I can only feel sorry for anyone who lost a great deal because of LUNA's death spiral.
That being said, I bought some HIVE and HBD the other day. I need to catch up on my yearly goals...
Just horrible to see it continue to get trashed.
There seems to also be a correlation between BTC and the stock market. I do not know which is pulling the other along. But overall it is the underlying foundation that everyone should be watching which is "use case" and "community". Just like in the stock market it is the underlying value of the company and/or product that determines the price. Take care.
!CTP
That's how I keep things simple...Use case, community and development. If I dont see them, I stay away lol
Very smart thing to do. I enjoy the articles you write, they always make me think. Take care.
!CTP
The advantage Hive has over most (all?) crypto projects is that we focus on content creation. Creating value. Not asset value. Yes, we would all like to see a higher USD value for Hive, but in the end this is not what drives us as a community.
That makes growth slower. But it also protects the community from short term speculative fever. Something the Luna/UST community appears to have had in abandon!
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Creating value, every single day. Very good point indeed! We seem to want to add to the blockchain, rather then just try to time things to exit for a profit.
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Cryptocurrency is about changing the world. If you can change the world and change lives for the better, you are always gonna be wealthy. Even if not monetarily.
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Every time crypto goes through a to da moon cycle and I read about people doing foolish things like mortgaging their house to buy coins or borrowing money on their credit card to do so, my heart just hurts for them.
And this week's fallout is why. If we don't train ourselves to resist the lure of instant gratification and covet volatile gains in a speculative realm, then we are setting ourselves up for pain.
Not that I am completely risk averse, it's just that if I lost all my hard work earned crypto tomorrow, I would be sad yes, but I would move on, because my self-worth is not tied up in things, rather it is derived from what I do and my heart's desire is that more people discover that, because then you just pick yourself up when you get kicked in the face by life, dust yourself off, and get back to doing the work, (AKA living).
I'm much like you when it comes to crypto knowledge, I only know what I have read and learned from the incredibly smart people on this blockchain over the years. One thing I do know is that human psychology always stays the same, so I don't think we will ever be rid of speculative, harmful behavior.
I just truly wish that one day the cryptoverse values projects based on their use-case, but as I am a hardcore Hiver I might be biased in this department.
Then again, as I did the last time this happened, I am just going to be here plugging away with my pals, creating content, engaging, and stacking coins that I believe have real value. 😊
Oof, and I didn't mean to write a dissertation here lol, I just really feel for everyone who is truly despondent about the state of things...Hope you are having a fantastic weekend!
The advantage of community, as we saw with the "fork you" we gave STEEM, is that we can all act in unison. If an attack happens, HIVE itself is our communication medium to coordinate a defense and rally the troops.
I think HIVE is resilient because the community is always watching. We help each other out to grow and listen to each other's kvetches. In that regard, the community is our real wealth regardless what the price is doing.
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I don't know why people keep saying invest what you can afford to lose, what if you live on crypto and you are 100% in. You don't have much choice, no too much approach like everybody. Crypto is good and be happy with where you are
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Being grateful is essential. Are you sure Satoshi Nakamoto did not CC you in the email I thought I saw your name lol.
I am a bigger crypto idiot than you so I am staying nice and comfy on the Hive BlockChain :-D