Unknowns Lead To Volatility

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Unknowns Lead To Volatility

If there's one thing we investors know it's that unknowns lead to volatility. Minimizing risk is what smart investors do so when new unknowns start to hit the headlines or are coming up it causes sell offs, rallies and other weird things to take place.

THE FUD

There's always going to be FUD and there's been lots of it for the last year vs crypto. As the SEC tries to continue to overstep its boundaries and become more totalitarian then ever. In the way they go after certain people or in this case currencies and what they stand for.

This type of attacking or unknown as to what the government and SEC might do compared to what they are legally allowed to do has sparked some of the biggest volatility ever in crypto and also in the stock market.

The Merge

The merge is being headlined now as the make it or break it point for the crypto world. This is starting to make crypto markets waver and see some wild swings we haven't seen for the last few months. Just today Bitcoin dipped to 18.5k and then quickly rallied back to near 19.4k and re-climbing.

For me the merge is either going to take foot or it's not but from all the testing it most likely will go through without any real major issues.

However any large update like this does leave a blockchain open to new risks as it's untested and I'm sure there will be some hiccups along the way with the transition.

These hiccups could have drastic effects on sales, double spends and other random issues that "could" come up with the merge. However many applications and exchanges have already said they will be putting things on pause during the transition phase and only opening it back up when the all clear is sounded.

This leads me to believe there will be minimal if any real issues and that the panic narrative about everything in crypto relies on this merge update of Ethereum is being blown out of proportion which is creating volatility and honestly some amazing buying opportunities when it drastically sells off on these dips.

Do you have fears for the Ethereum merge?

Posted Using LeoFinance Beta

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There are many unknowns in the world today that are lead to increased volatility. These include: the future of the economy, the outcome of the current global pandemic, and the results of the upcoming presidential election. All of these factors create uncertainty, which can lead to instability and market volatility.

While it may be impossible to predict the future, understanding the impact of these unknowns can help investors make more informed decisions and avoid potential losses. By staying up-to-date on current events and monitoring the market for changes, investors can minimize their exposure to risk and maximize their chances for success.

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Very true points. No one knows but understanding the history of things and what's coming can help.

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If I'm to be an Ethereum holder I will be so worried. What if the merge brings nothing but chaos to the Ethereum holders

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Agreed there is a lot of risks which normally scares a lot of investors off. I could see them dumping into stables and holding out till after the all clear sounds to pile back in.

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