Cryptocoins turmoil: Why not to panic
If you don't have the stomach, the fall of the entire cryptoworld might get you sick, but if you've been here for a while you'll understand that a swing of 40-50% is not entirely abnormal. You saw it with BTC when it first hit 1000's it went back to 700's and again in 1200 all the way down to 900's, and even with ETH with a pullback from 230 to 125 USD.
Having that clear we can move on and try to find a real cause of this pullback besides the speculation and the false rumors about Buterin's car accident.
Let's put this into perspective, 2 scenarios:
Imagine you're an institutional investor, call it a hedge fund, and you're seeing your capital grow at 4000% CAGR since january, even if you're a truly believer of the Ehereum project you cant trust that kind of growth rate to keep the pace, you would cash out, take profit and get back in for the next pump.
Imagine you're an entrepeneur after a succesful ICO that raised thousands of ether, for you to materialize your project need the money to pay rent, buy machines, pay staff, literally growing a company, you need the fiat currency to do it, and it goes again, something that has grown more than 4000% in a semester can't hold the growth, so you as a start-up with thousand of ether would want to cash'em at high value and not risk to start working with less money.
Those scenarios are the ones that really matter, because they're the big players, the wales, the ones that really drives the prices, and you just needed one of them to start selling to see the domino effect, but don't get confused, those are the ones that sold first and are the ones buying to the little fishes that are panicking.
Of course the blockchain technology is still on dippers, but is not some kind of trend that everyone is going to forget in a year, this came to make our lives better, giving us more control over our assets and decisions and the project are just starting to develop so i'm sure the ones who panicked and sold in a rush would want to get back in when it's on the rise and that may be too late, the smart money stays to see the grow, is still a baby.
Opinions and thoughts appreciated, please upvote and resteem! The more points of view the better!
Excellent point of view!
thank you
Yes Indeed!! People forget about the whales..... But the good news is other whales will also BUY UP whatever DROPS. Never a need to panick!
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