The chronicles of these days report numerous problems that animals are causing us humans, such as swine fever brought by wild boars to the eternal city or monkeypox. But another animal, large and potentially dangerous, appeared, almost suddenly, with a roar and without anyone wanting it: the bear. The bear of the markets, so to speak, the one who, while ruglando, chases away the bull in no time.
The blockchain explained to my grandmother
by Adriano Marconetto
April 26, 2022
In the crypto world, already volatile on its own, the arrival of the bear gives traders a fever, by nature fans of the bull (not necessarily the grenade one). The sector newsletters, as well as social groups and those on Telegram, are teeming with almost existential questions, such as “but is it a real bear?”, “How long will it last? More than a year? ”, Implying despair and anxiety.
The answer, Quelo said, is within you, but it is wrong. Any irrational reaction to critical market periods is always a harbinger of problems. If you are a person who buys and sells cryptocurrencies, maybe the bear seasons are bad if your profile is short-term, as a trader, but almost certainly excellent if you are a HODLer, one who buys and puts away, perhaps opting for some active custody solution that regularly increases your cryptocurrency. The reason is simple: in prolonged moments of market downturn, that is, at a time like this, digital assets can be purchased at cheaper prices. But you need to have the “chest of drawers” approach, as they used to say, and work in the medium term.
Cryptocurrencies
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by Adriano Marconetto
03 Maggio 2022
In these cases, however, we must not make the mistake of wanting to buy immediately: who says that the prices these days are the lowest? They could go down again (in my opinion, but supported by little or nothing and therefore do not take me seriously). In any case, you should never try to make the deal of the century. If one is interested in entering crypto or in increasing their number of cryptocurrencies, it is preferable to do so slowly, without haste that the bear will not run away tomorrow. In fact, everything makes me think that he will continue to rumble for quite a while.
Let us always remember that, in all things, it is better to lose a good deal than to make a bad deal. If, on the other hand, you are an entrepreneur in the sector, that is, if you have developed one or more companies in the crypto and blockchain world, or you want to do so, and yours is therefore a non-speculative approach, the bear season for you can be a godsend. But how, someone will say. Venture capital funds have stopped making investments in crypto companies overnight, or have reduced them by renegotiating valuations, and therefore it is much more difficult for entrepreneurs to find capital. Furthermore, in moments when the bear dominates, customers are on the run, or at least the Fomo (Fear Of Missing Out) disappears in them, that irrational desire to buy at all costs typical of times of market growth.
The manna, which perhaps some people find it hard to see, however, has arrived for these people and is called time. What is never there in moments of turmoil in the market, a bit like when the low tourist season arrives and hotel owners take advantage of it to make improvements to their structures that they do not have time to do in the months of full house.
For such a young industry, having time to improve their products is great news. Because let’s face it: if we want even a tiny part of the large institutional capitals to enter crypto in the next few years, there is still a lot to be built and the work to be done is enormous: new versions of existing platforms, new features, new services for future customers. And then new concepts, new infrastructural solutions, new models of collaboration with the world of classic finance also in light of the new European legislation that will arrive within the year, if not sooner.
I am convinced that when the bear stops rubbing and leaves the scene to the bull again, only the services that have been able to strengthen themselves technologically will be able to aspire to a slice of the pie. In the coming months there will be some natural selection and some creative destruction, even on business models. Whoever survives will be stronger, more credible. There is a lot to do, also because all the services that can be used today have been designed and built in a few years and in an atmosphere of euphoria, sold out.
Stopping a moment to think is not bad. Indeed, it is a real luxury. We will see in a couple of years who will have been able to take advantage of it.