I had never heard the term FUD before entering the Crypto space, but I quickly discovered what a big role it plays in investing. Whenever you have groups of human beings all playing together at the same 'game,' in this case investing and trading Cryptocurrencies, you inevitably end up having emotions of some sorts taking over control at some point and time. It is sometimes referred to as 'The Herd Mentality.' When the emotion of fear becomes contagious and spreads from an individual mindset to a collective mindset and results in a type of "group-think." The problem with herd mentality is that many a herd have run themselves off a cliff due to fear instinctively taking over. Fear is very powerful and can cloud one's judgement as thinking becomes panicked and erratic, thereby stopping the logical evaluation necessary to make sound decisions.
I am watching this happen in Cryptocurrency right now. Again. After quickly soaring to 20 thousand dollars in December 2017, it has been painful to watch it fall back to approximately where it was back in November -- especially if you bought near the top! And it can be painful enduring the taunts from "disscoiners" (friends and family that think BTC is a scam/sham), saying things like: "How's your precious BTC doing today? I hear it has crashed and is gettin' ready to burn..." All the while looking at you like you've just been taken in by a Nigerian scam or a snake oil salesman. So I am not trying to minimize how scary and painful a time like this can be. However, if we break out of the herd way of panicked thinking for just a moment, and look at things LOGICALLY, we may find a rosier picture. For instance, stand back a bit and take a look at BTC's (and general Cryptocurrencies) history. BTC has been through this many times before - at one point falling more than 90%. Yet it has ALWAYS seemed to come out on the other side stronger and worth more in the end. Secondly, look at all the money pouring into the blockchain/crypto space. Millions and billions of dollars have have been entering via ICO's, start-ups, venture funds etc. Big named companies, institutional conglomerates and even some banking businesses (albeit quietly) have all had their heads turned towards Cryptos and are dipping their toes in, to test the water... ..That is a good sign. Usually, at least in the past, when these types of sectors and businesses start to LEAVE a space - is an indication that the space is about to implode or fail -- NOT as they ENTER it. I mean, would the Royal Bank of Canada or the Toronto Stock Exchange get involved with Cryptos just as it is about to go poof?!? Also, ask yourself if the science and fintech sectors would be investing all of this time, energy and money into building the blockchain infrastructure to facilitate cryptos, just to have it vanish overnight? In my opinion, I don't think so.
O.K, I admit that anything IS possible! And yes, this is known as the Wild Wild West of Cryptos. But unless we keep our heads about us, control our emotions and keep our hands steady -- we will end up running off the cliff with the rest of the herd. And who wants to do that?!?
So, on days like today, it is important to remember to breathe, take a step back and put fear to the side where it belongs. When fear is in the driver seat, more often then not we regret where it takes us. Instead, we can choose to be in control, think clearly and evaluate the situation before us with logic and wisdom. And if you believe in the tech and the revolution at hand, then hold on tight and keep believing. That's what I'm going to do. Then no matter what ends up happening with BTC and Cryptocurriencies, I'll know that I did the very best that I could -- instead of running around like a chicken with its head cut off and following the herd off a cliff.