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Energycore
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I agree with this article in that the correction (crash or whatever you wanna call it) that happened this week helped weed out people who either a) suck at investing or b) couldn't give a rat's ass about blockchain and just wanted to get in for a get rich quick scheme. As Warren Buffet once said, don't invest on something you don't understand.

 

https://cointelegraph.com/news/bitcoins-correction-could-well-have-shaken-out-potentially-damaging-investors

  1. vanished

    vanished

    "correction"... didn't it drop from like $20k to $6k or something?  If it was any normal currency or stock that would be like the end times xD

  2. Crunchy Dragon

    Crunchy Dragon

    Dave Ramsey says something similar: "Don't buy something if you can't tell me how it works".

  3. Energycore

    Energycore

    @Ryan_Vickers the thing is, the fact that it reached 20K is in itself an anomaly. The bottom at $6000 is actually higher than the last time we set a low on the weekly, which means that it's now returned to its healthy growth after a period of insanity (it really was a period of insanity). So yes, it looks insane because it's from 20K to 6K (lost 70% over a month), but it's actually just normal of how a market would behave if it was this overextended.

     

    There was a bubble, since a lot of people bought into this market just because it presented an opportunity to make money, without knowledge of the market, and that gave bitcoin an increase in value that's not backed by anything but speculation.

     

    The high volatility of bitcoin, the fact that when it raises it gains 800% and when it corrects loses 70%, is the reason why it's such a lucrative space for the people who know when to buy and sell.

  4. vanished

    vanished

    Yeah it definitely was insanity, and a bubble, and was propped up by primarily people rushing in to get a quick buck and having no concept of the long term value

  5. Energycore

    Energycore

    Then, as people saw that the all-time high was set and we weren't going back up anytime soon, they rushed to sell in panic - it created stuff like 4 days ago when there was a massive selloff, so massive the market immediately picked back up and saw 30%+ gains from the people who bought that dip. This is still a market full of trading n00bs, but the hope here is that this crash pushed some of them away and the market becomes a bit more rational.

  6. vanished

    vanished

    Even normal markets aren't rational, and bitcoin is a long way from them

  7. Energycore

    Energycore

    That's why I said "more" rational :P

     

    I'm aware that markets are based on emotion, but the big spaces like the Dow Jones or big company stocks are run by investors who are very good at controlling their emotions and picking up those of others. In other words, people more rational than the guys who bought bitcoin thinking it wasn't ever gonna stop climbing.

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