Once you fall down the rabbit hole of Bitcoin, there is no turning back. You can no longer see the world in the same light as before, and you wouldn’t want to. You will begin to believe that the future is Bitcoin and that it not only is a great way to make money but has the potential to completely change the world.
However, that isn’t the only way that Bitcoin will change you.
The Bitcoin market will numb you emotionally, and make you lose touch of reality at points.
Perhaps the trouble first begins with the stories that first made this market so enticing to many of us. We heard the stories about how Bitcoin was going to be the next big thing. It was a “better” digital gold, but that was only the beginning. Financial experts predicted that Bitcoin soar in popularity to a point that it will cause the largest transfer of wealth that the world has ever seen. Resulting in anyone already invested in Bitcoin becoming obscenely rich.
This is the dream that helps so many during the darkest points in the market cycle. It is entirely possible, and becoming likelier as each year passes that Bitcoin will be able to reach those extraordinary heights.
With that said, to reach those heights, unprecedented volatility will be necessary. Volatility to the upside, and also to the downside. After all, if there is anything that Bitcoin will have already taught you. It’s that prices don’t go up only.
This is where we begin to lose touch with reality.
Each crypto cycle begins with the Bitcoin halving cuts in half the issuance of new BTC to miners. A few months after the halving a supply shock begins to hit the market. Causing the price of Bitcoin to begin going parabolic, and igniting the bull market.
The crypto bull market will give you a dose of euphoria like nothing you have ever experienced before. During this period it will seem like prices only go up. That you can pick any coin at random, and make a fortune.
You begin to check the value of your crypto portfolio on a daily basis, which soon becomes hourly, and eventually every few months. During the thick of the bull market, you will have made more money than you ever imagined possible. You’ll probably even begin daydreaming that if the market goes just a bit further, maybe just maybe you could buy that dream house, or even consider retiring.
However, all of this is still simply numbers on a screen. Each day you will become ecstatic about your portfolio going up by thousands, tens of thousands, hundreds of thousands, or even by millions.
Bitcoin and crypto will make you lose touch with just how large these numbers are, and you will start to become numb to the gains.
Easy come, and easy go.
With crypto, the journey upwards is always longer than the movement down.
Once the price of Bitcoin begins falling, it is moving with the weight of a semi-truck that cannot be stopped. This was evident by the days last cycle when Bitcoin’s price fell by over $10k in just a few hours. At the bottom of the cycle, Bitcoin and Ethereum both dropped by nearly 70%, while most other altcoins fell by more than 95%.
The secret to success in this market is simply surviving for the long term. However, during that time you will build fortunes, nearly lose it all, and repeat that over and over.
As time passes, you will begin to lose touch with your portfolio and the real value of money. They will just become numbers on the screen until you finally decide to sell and reap the rewards from your years of accumulating.
This market will test you more mentally than any other financial market out there.
Don’t let it change your sense of reality.
How about you? Has the crypto market caused you to lose your sense of reality?
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As always, thank you for reading!
