Every crypto owner is seriously watching how bitcoin fluctuates and even moves below the 20,000 US Dollar mark. This has created an unusual panic coming from the entire community. It’s really pathetic to know that this USD 20,000 mark appeared to be a pinnacle of crypto success half a decade ago. But now, it has turned into a grim gravestone that sits with ease on the disintegrated pipe dreams of luxury yachts, Lambos, and gambling sprees (Monte Carlo).
Want to know what’s wrong with this path of thinking? Those who base their thoughts on Lambos and Manhattan penthouses will certainly experience, from time to time, significant loss, regardless of the market they live through. It’s crucial to take a tough entrepreneur step in an extremely volatile market and ruminate on building value for the crypto world and not consume it– this is the only way to stay in crypto.
Market conditions
The cryptocurrency market is currently experiencing a recession, downturn, or crypto winter. It’s what anyone with the knowledge of risk management would have foreseen to happen later or sooner. Unfortunately, on the part of numerous organizations and people, there wasn’t any proper risk management.
People on the bull market were of the opinion that it wouldn’t change as long as new individuals came along. But have they reflected on how business models are solely based on the supply of new people? Or that the supply can’t be endless, and why do the business models known as Ponzi schemes or pyramids always collapse?
But it should be noted that the crypto market downturn hardly affects individuals that create and run their businesses through a complete account of profits, risk assessments, and expenditures. Yes, there were really some impacts; however, all those events are expected to be treated positively or neutrally.
Why market crash is good for the ecosystem
There are several reasons to remain optimistic about the fact that positive things will come out of the market crash, leading to loss of capital and jobs. People are sober about the crashes, particularly those seeking a quick buck from pumping/ speculating or those living for pipe dreams and expectations. These people make up 75 percent of the market– In reality, this behavior is punishable.
People prefer expectations to real life, which precisely results in a downtrend. The market will surely crumble If 75 percent of the market has such an expectation. Well, it’s normal for markets as they usually go with people’s expectations.
Losses in the market pulled dependent businesses into the grave. Also, Celsius, due to risky statements and regulatory attention, found itself ears-deep in the bog. People were frightened by the expectations of loss and began to sell Ethereum, which made the ETH staking fall into upheaval and unrest.
But, is there anything positive about this? Well, it’s a market-neutral process of removing inefficient players. Since they were responsible for the condition of the market, then they got what they wanted. You should be prepared for downtrends and market downturns when working with digital currencies – you shouldn’t even get into the market in the first place if you don’t take it seriously.
Market crash sifts out useless profiteers, pushes away the lucky traders (charlatans), and kills startups that create their businesses on an indefinite streak of grants and not on sound business models. The result of this is that programmers will join real projects with risk management, a steady economy, and true sustainability.
Normally, the market will collapse and grow from time to time. So more efficient businesses should be serious about making a change and not quick money. As a serious-minded individual who is prepared, there is a guarantee of your survival and prosperity. But this may not occur if your level of seriousness and preparation is very low.
Errors are not wrong
Risk management is basically about making more right decisions than wrong ones. Yes, mistakes have their positive side as they could be a channel to success– after going through a series or learning, erring, and drawing conclusions. But the more correct decisions you make compared to the wrong ones, the steadiness of your growth can be assured– this is an effect referred to as an anti-hook.
Several wrong decisions have been made. For risk appetites, many people have made a lot of risky investments. The correct strategy was that of expanding the number of blockchains using Everstake presence. But the errors were primarily about the choice of specific blockchains.
The negligence on Solana (SOL) tokens at the project’s dawn is one of the mistakes made. Several individuals failed to take Solana seriously, which resulted in lost profit for some buyers. It should be noted that mistakes are unavoidable. And they are a gateway to success if a sound strategy and risk management are involved.
Without the high-risk futility caused by daydreamers, the market would have been better off and even more robust than before. There is a transition in season, and cryptocurrency winter will unavoidably turn into a cryptocurrency spring and be succeeded by a proper cryptocurrency summer.
Remember that crypto wasn’t created to scam people– and, in fact, it’s not a pyramid. It has experienced numerous cycles of downturns and upturns and continually ended up more attractive and stronger than before. So there is a guarantee that the same will occur repeatedly.