THE HUMAN EMOTION CYCLE

There is a huge sentiment in the crypto and stock market. There is anger and resentment, and fear at this moment that wasn't in 2008 and 2001. The tide in this is liquidity and liquidity is driven by central banks trying to stop inflation and which slows down the economy, and it hard for people to borrow money. The whole economy slows down and the whole business circle will restart. The economy is cyclical because the credit cycle even without a central bank is that you can lend or borrow too much money and something happens at the margin and you borrow to lend too much money and pull it back again.

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The central banks try to soften that cycle and they still can create it and use it to try and let economies go too far because of hyperinflation. That cycle drives the movement of asset prices and that is the crypto market and other markets. The cycle became the human emotion cycle and the human emotion cycle makes people think they are genius. So, investment is just a manifestation of our feature self and you got that vision of what you will like to be and get value because that will deliver that.

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If your investment does well, you will start readjusting yourself higher over time. When the market goes against us, we have to go through the emotional inner journey of sadness. When you think you are good at this investment game, that is when things change then you think you are completely wrong. Then you over-extrapolate the downside, and if this continues you have started to say crypto is going to zero. But if zoom out of the chart, you will discover that is a nice smooth upward trend which is the adoption of cryptocurrencies and blockchain technology as a new financial system.

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When it goes up on the linear chart, everybody says it is a bubble. You think the market will continue to go up but then it starts coming down. You start getting angry which is where we are now. The entire story of liquidity and the central bank are on the linear chart but people forget the bottom and the top. There are some questions we are going to ask ourselves. As anything changed in the market crypto? The answer is nothing. Is blockchain technology being utilized? Yes. The adoption of blockchain technology keeps rising, it is really a psychological gap and it is a long-time game. If add up at the bottom of the cycle and keep holding, the probability of you coming at the end of the decade and have manifested your future self in a way that is quite unexpected.