FOMO vs FUD: The War of Emotions You Have To Win To Profit From Bitcoin
You must accept the volatility of Bitcoin price and use it to your advantage.
|Sylvain Saurel||Jan 12||4||3|
Bitcoin is much more than a financial investment. Nevertheless, we should not delude ourselves. For a majority of people, Bitcoin is simply another financial asset that offers the prospect of a phenomenal return on investment.
Since the beginning of this Bull Run in October 2020, the majority of people who have come to buy Bitcoin have done so hoping to take advantage of the incredible increase in price that awaits its price in the coming months.
I would be lying to you if I told you that these people realize that Bitcoin is not about money, but above all about power. Bitcoin is there to give back to the people the power regarding money. Some will eventually realize this and become Bitcoiners. Others will continue to be blinded by the lure of gain.
Those people who see Bitcoin as nothing more than a get rich quick scheme will be constantly confronted with the war of emotions.
On the one hand, there will be the FOMO (Fear Of Missing Out) feeling when the price of Bitcoin rises sharply, as it did in the first week of 2021. On the other hand, the FUD (Fear Uncertainty and Doubt) sentiment will take over when Bitcoin's volatility is at work as it was yesterday, January 11, 2021:
Last week, the price of Bitcoin went from a low of $28.2K to a high of almost $42K. This represents an increase of almost +50% in a few days.
At the time, everyone wanted to buy Bitcoin and give in to a FOMO feeling. The mainstream media was publishing articles explaining that Bitcoin was breaking record after record and that it was heading straight for $50K.
Yesterday, the Bitcoin price went from $40K to $31.9K in just a few hours, a 20% drop in price. A FUD sentiment has taken hold of the market. Everyone became afraid. All the opponents of Bitcoin began to say that Bitcoin was a speculative bubble again.
Regulators began to warn that retail investors could end up losing their entire initial investment in Bitcoin. Bitcoin was dangerous again.
Some media made headlines saying that Bitcoin was back in a bear market. Sorry to disappoint those Bitcoin Bears, but the Bitcoin Bull Run is still not over. The strong rebound observed since the beginning of the day proves it. The price of Bitcoin is back close to $36K at the time of writing.
Those who sold their BTC at a loss yesterday in a panic are what I call weak hands who make the mistake of giving in to their emotions. On the other hand, we have strong hands that are taking advantage of this to buy more and more BTC at prices that will seem extremely cheap in a few months.
Indeed, you need to learn to see beyond the daily charts of Bitcoin's price evolution. You need to develop your long term vision of Bitcoin. Between the FOMO week of early 2021 and this FUD day yesterday, the fundamentals of Bitcoin have not changed.
Bitcoin still gives you three fundamental freedoms:
The freedom to send BTC
The freedom to receive BTC
The freedom to HODL BTC
Combined, these three fundamental freedoms allow you to lead your life on your own terms. Whether the price of Bitcoin is $40K or $30K, these freedoms are always present. In the long run, they will make the difference for Bitcoin, as more and more people will come to buy Bitcoin.
The demand for Bitcoin will continue to grow exponentially in the coming months and years. The Bitcoin supply will remain at 21 million units no matter what happens. With a basic application of the principles governing the laws of supply and demand, the price of Bitcoin will only increase exponentially in the future.
If you want to be among those who will benefit the most from Bitcoin, you must be able to have that long-term vision that will make all the difference for your future. This means stopping letting those FOMO or FUD feelings distract you from the only thing that matters right now: accumulating as much BTC as possible.
Bitcoin is an accumulation game for years to come. The more BTC you have in your possession, the more your future regarding money will be under control. It's up to you to open your eyes and enjoy Bitcoin to the fullest. In any case, you should always keep your emotions under control.
This applies to all financial markets in the world. Those who control their emotions and make decisions with their sense of logical reasoning are always the ones who make winning investments.
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