Some perspective...
Price chart courtesy of coinmarketcap.com, annotations mine
I was planning to do some work on my various Steem projects tonight (I have so many now that it's hard to even remember what they all are!) but found myself instead just staring at the price action in disbelief!
I vividly remember having the same feeling of disbelief - but in the opposite direction - just a little over a month ago when the price of STEEM fell to the same price it has just risen back up to tonight.
Remembering that made me realize that our feelings and emotions are not really based on how things are in the present - they're based on how they compare to the past, and therefore how they compare to our expectations.
In January and February we got used to the price of STEEM being in the $5 - $6 range, and it influenced the way we acted and how we thought about the future (at least it definitely did for me). Then, when it dropped, all of those hopes and dreams were dashed.
On the other hand, once we got used to the price of STEEM being below $2, our expectations changed. Now that it's starting to go back up our feelings are reversed.
The point is that we can control our feelings about a situation by managing our expectations. Going forward, I'm going to work on keeping my expectations and hopes for the future grounded and realistic. I'll do my best to ignore the price action and work under the assumption that STEEM is worth $1 - or maybe even less.
That way I should be much better equipped to handle large drops in the price, in addition to large gains (here's hoping for more of those!). Easier said than done of course - so we'll just have to see how it goes!
So, no development work tonight for me, just a little dose of perspective instead. How do you deal with the price swings? How do you manage your own expectations? Let me know in the comments - I try to always upvote thoughtful responses!
I had the same feeling today, as well. As I watched the price of Steem rise, as well as EOS (one I am also heavily invested in) I didn't have a rush of excitement like I did when I first started investing in crypto. I thought "it is about time! But this could flip negatively in an hour." I think as we've experienced the lows, many, including myself have developed a realistic expectation. With news of regulation and bans, it is safe to assume we won't see sustainable growth until all policies have been implemented and run smoothly. But hey, at least we had a good day today! Keep up the good work, bud.
Yes this is really key. I'm certain there are tons of business who want to get into crypto but aren't because things just aren't clear enough from a legal and regulatory perspective and they don't want to take that risk.
Hey @yabapmatt, great post! I enjoyed your content. Keep up the good work! It's always nice to see good content here on Steemit!
I agreed with your point. Eos is also one of my top picks. I don’t think I will have that rush of excitement again until we surpass the all time high. I don’t even look anymore..
I've been considering writing a post to discuss the price swings. My wife takes them harder than I do. Personally, I think I have a very firm long term understanding of the value of cryptocurrency (Steem, ETH, and others) and while the short term drops make me sad, I am 90% certain we'll see a trillion dollar market cap within the next 18-24 months (and maybe sooner).
But ultimately, we all die, so does it really matter as long as I can feed and clothe my family?
I really, really hope you are right, but i don't share your level of certainty about it - just because i really have no idea what might happen!
Well that's really the goal of all this, isn't it? Ensuring that we can feed, clothe, and adequately shelter our families for the rest of our lives. I can provide all of that at the moment, sure, but can I still provide it in 5, 10, 15+ years? That's why I'm investing - to ensure that future.
Good point about investing. I agree with that, but my point was more focused on whether or not Steem will moon over the next few years.
So I'm detached about Lambos, but not about things like long term care when I'm old.
I mean, if Steem hits $50, great(!), but neither does the idea consume me.
That is a terrific ending to the night. I agree that we can control our feelings about a situation by managing our expectations. Having a realistic and grounded approach definitely helps with reigning in the different emotions during ups and downs.
It’s similar to a roller coaster ride. We have no qualms with the upward journey because it’s smooth sailing but there are expectations once we reach the top and brace for the ride down. The flutters and fear and panic of what’s to come is less scary because we set expectations ahead for the journey down. We expect all the insane feelings.
As for the price swings, I stopped looking at my silly crytocurrency portfolio. There were ups and there were downs. I figured I will hodl for the long run so no point in staring at the red colors. I continue to look at other opportunities of course because red doesn’t mean red forever. Today for instance, green is always a good color to see!
Nice chatting with you again Matt. It’s Paula from our team. 🙂
Everything depends on the context. When the Bitcoin arrived at $7,000 a few months ago everyone was happy, today the opposite happens, even if it reaches $8,000 or $9,000, the panorama does not change much.
Investing in a currency is like a relationship, everything is based on trust. Building that trust takes time, months and maybe years, but losing it is very easy, a single moment of crisis can damage everything.
My first investment in the BTC was made when it cost $1,000, spent some months where the rise was low and the price fluctuated, but then the madness between November and December last year inflated the prices and with it the prospect, the hopes of people were higher than the market could cover, and the rise was mainly due to speculation, people expected that during 2018 all the cryptos go up even more, and when finally the price collapse, all the trust was lost.
People are regaining their confidence again and little by little, and increases like this help, although as I said, everything depends on the context, if people feel that the market is safe and their increases are real (and not by speculation) then the trust will return, If not, demotivation will continue to spread and the market will continue to be depressed.
Hi @yabapmatt! I was welcoming newbies and saw your comments welcoming them too. I thought that your taking time for doing that is awesome.. hence got curious about your blog. What you described here is related to behavioural finance and it's fascinating to realise how our brain works building a selective reality, biased from past experiences and traumas. We need to learn recognising these dynamics, which are part of our most primitive self defence mechanisms, and be able to counter them. I think to phenomena like the risk propension after a loss and to the cognitive bias effect, between the many. Back to Steemit, I focus on using it mainly to create value both in human relations and artistic content, trying to forget the economic side in the short-medium term. It's been nice to "discover" you and I will sustain you in your witness role.
Thank you for your support! I really like to spend time looking through the #introduceyourself posts and finding new users who I really think can help contribute to the platform and giving them as much of an upvote as I can to start them off on the right foot. I wish I had more time to spend doing that actually.
Thank you for your time and kind reply! I can figure your feeling, although I'm just a minnow but chronically drained in my VP for voting everyone hahah. Trying to start something and gain critical mass here is not easy at all. I wish one day my fiction contest will be sustainable, as I think I found a nice way to spread some wealth and making people push out their creativity at the same time. It was nice to talk to you, keep up the good work for the platform! :-)
He is a friend himself. we must be willing to mentalize that this steem in $ 1 or raise to $ 10 we must be prepared for each stage of this world. This is so today we are well up and tomorrow well down. The whole is how you mentally develop! and live willing not to let your feelings depend on a currency fluctuation
Big boys going long give me some perspective. Watch this CNBC interview with Venrock. It will definitely go crazy this year.
https://thenewresearchgroup.com/market-updates-rumors/must-see-cnbc-interview-with-venrock
It helps me when I don't even think of the price of Steem. Meaning, I'm in this for the long haul and continue to invest my money in the blockchain.
No matter if the price is $1 or $100....I see value in the utility. And I know that's the common response that we're 'supposed' to say but I literally...Live on Steemit lol So there is massive value for me and the price swings whether it's low or high really don't affect me.
As for managing my expectations....To the mooooon? LOL Nah seriously, I expect to provide value every day in my posts and content for my followers. So I expect more from 'me' than I do the price of any crypto.
Great post sir, good food for thought when it comes to putting it all in perspective.
I had liquid Steem when it dropped last month an after 2 weeks waiting for it to come back, I finally powered up. When it's powered up I do not care at what rate it is because that's long term and I am optimist enough to see it higher in a year or 2. When it's down at $1.50 is when I didn't plan to save some money to buy more , so I'm a bit disappointed to see it back at $3, but happy at the same time to see my wallet value increase.
This is a really good point!
It's all about perspective. I think this recent bull market has scared away some of the fair weather investors, which is a good thing. If you are really into steem and plan on being here long term than this minor uptrend should bring nothing more than a smile to your face. I am more concerned with where we are headed and a price forecast 5 years from now. These day to day movements can be exciting, but need to be taken with a grain of salt.