Dropped the Chain
With all the movement on Bitcoin recently, I was surprised why one of my friends had mentioned anything about it. He bought a bit of BTC and ETH back in 2021 when Bitcoin was around 50 on the way up, saw the high and then watched it slide ever since. Near weekly he would mention something about how he was down, or it was climbing back up a bit, or he should have sold, or bought more at the low (but never did). So, not mentioning it now at the first time in profit in two and a half years, is weird.
So, I asked him about it.
He hadn't bought much, but kept it all on Coinbase anyway, rather than in a private wallet, something I warned him about and said multiple times that I can help him move it. However, with all the changes in requirements, he had to do some KYC, otherwise they would "restrict" his account. He tried, but they kept rejecting the identifications he was using, so instead of asking me about it, 2 minutes before the deadline, he sold everything he had. That was when Bitcoin was at 40K
Two and a half years of holding, and he made a loss.
After he said this, I just remained quiet, as I know he is feeling pretty shitty about it and I also know that he knows that he could have easily (and should have) talked to me about it first. It is a pity, because after all of this time, even if it wasn't going to be much, I would have liked to have heard him talk excitedly about being up - now he is just going to be bitter.
Even if it wasn't much.
That feeling of loss is going to be there, and we tend to remember it well. Pain is a great teacher, and this is going to be a painful reminder for my friend, and will probably stop him from ever buying again, because if the next year meets expectations, he didn't just make a loss on his initial purchase, he has also lost the potential for gain in the future too. When Bitcoin hits 100K, he is going to remember. And he will be reminded again, and again.
After that high, how long until it will reach a loss again for him at 50?
While some of my other friends are there excitedly watching whatever crap they have bought in the past go up, and their technical wealth increase rapidly, he is going to have to sit there and feel crap, just because he didn't ask. This will be the third time too, because I tried to get him to buy some Bitcoin back when it was 900, then again when it was at 4000 in March 2020. All that pain.
And still hasn't learnt.
In some things, perhaps we never learn, no matter how many times we have been taught the lesson. maybe it is like me and math, where things just don't click for me once it gets too complex or abstract, because I just can't put all the pieces together. Crypto is a mix of economics, technology and faith. Some understand the value propositions of the technology, some get the theories around the economics - but how many have the faith also?
I am disappointed for my friend, because for him, the amount that he put in wasn't that significant in the grand scheme of his life, but the lessons he could have learned other than pain, would have likely changed his understanding in many aspects of his life, improving multiple areas. At least for me, after many losses and many unrealized gains, I have found so many hidden values through crypto that have affected other parts of my life, and shifted my perspectives.
Mostly for the better.
We are still in for some ups and downs and for those who haven't invested yet, there are plenty of opportunities to come, and more opportunities for those who have, but at some point, there is a certain inevitability about the mid-term future - but in the longrun,
No one knows.
Worth the attempt?
Worth the hold?
Worth the lesson?
Worth the pain?
Taraz
[ Gen1: Hive ]
Posted Using InLeo Alpha
It is a real pitty. I think it would have been okay if he had sold it after a while, thinking it would go further down, but selling it after two and a half years is not reasonable to me.
Yeah - it really is a shame. I was so looking forward to him getting a taste of crypto victory.
It's a shame that he didn't last, especially if he didn't really need that money.
The first cycle is learning, losing and suffering (unless you have beginner's luck and you get some x100), and the next cycle reaps profit.
So it will be in my case.
Don't give up even when the portfolio drops 90%.
I feel that this move will be the last for him - he will likely never go in again.
That’s a shame for sure, but I hope you’re able to convince him to get off the sidelines moping and get back in. It was a lesson and he learned it, now he can get back in with those same funds or other funds and get to buying some assets to have something. Even .01 bitcoin is better than not having any!
I’ve actually got to talk to my work friend to see what his thoughts are - he’s one that I know is on the train but I haven’t had a chance to formally talk to him about it yet.
The upward action is nice - where it leads though we can only guess!
I will talk to him, but not convince him I think. I feel he is already feeling that he has missed out, and that loss stings.
At some point, I hope some value flows into Hive!
Anyway, I noticed, and made me laugh, as Bitcoin jumped up, Coinbase restricted trading, pretending they have technical difficulties, as they do everytime when a pump or dump happen. So predictible.
The exchanges are clowns, aren't they? The thing is, if he had just said to me, he could have transferred it across to me before the restriction, or I could have set him up on a spare trezor. I tried, but people have to take their own steps too.
I have a friend I have been trying to get to buy crypto for a while. They just finally bought the other day when it was around $40k. They are likely quite happy that it is now over $60, but they could have made so much more if they had listened.
So many times I have tried to get a few of my close friends to put their toes in, even a pinky - people fear loss so much, but they will spend 100K on a car.
Yeah, that is a great point!
Definitely worth the lesson for someone keen to learn. I believe you win or you learn for the most part so your friend learned. Why not use that knowledge gained?
If someone said they were ready to learn and had money to sink into a horse to see if it would run, I would say wait for a 20% dip rather than buy at 60k. Has a chance of being the worst advice anyone has taken all year.
The things you can learn from blockchain are many.
If buying at 20 and it goes 50-100% up in six months, it will be a brilliant result - but how many are willing? We will see what the institutions will do now :)
What a great lesson to learn from. The uncertainty in crypto generally keep a lot of people out of the goodies. But I agree that it's worth the trial.
That really sucks for your friend. I bought at 50k as well back in 2021, a very small amount of 70 USD just go have it in my portfolio, and seeing it finally go back to green is a nice feeling.
I guess the funny question is, is he going to buy BTC? We are getting close to the halving, and history shows it goes higher after that.
He never saw it! 2.5 years, missed it by a week....
I feel that he is done. But, hopefully he will change his mind.
Yeah, that's a heartbreaker. Maybe the dip before the halving would be his best chance if he ever decides to come back.
A lot of early Bitcoin holders sold it at prices ranging from $1 to $300. It's better for them not to think about Bitcoin at all. For example, it’s better to buy ETH :)
Is there still life in Eth? I don't have much - fees are too high ;)
Transferring ETH costs less than a dollar. I think around 5-10k for ETH to switch to HBD.
It sucks that he got a loss but I do think the KYC can get really annoying. I don't like it but the regulations kind of forced their hand.
There have been many issues surrounding KYC lately. At some point, people will hopefully rebel against the governments and say - leave me the hell alone.
Interesting post! Like some once say, you can copy trades but you can't copy conviction. I think people that are more informed about cryptos would manage their crypto investments better than those who just join because of FOMO and thinking it's some get rich quick scheme to turn them into a millionaire overnight.
FOMO is a big thing, but in general, it also takes getting a bit deeper into the weeds with crypto - learning about the value props.
I would not want to say that he is being greedy because he should have sold the BTC when it was a bit high after he bought it but at the same time, he may be thinking that he’d make profit after a long time
It is well…
You friend can probably buy in, around the same price, at the end of 2026 ;<)
Although, who knows what happens in between.
And yeah, crypto mostly isn't a get rich quick scheme. That much I know, after almost 7 years in the game.
The bottom might be higher than that!
Are you feeling the 7-year itch?
It's starting to creep up on me. 2.5 more months to go.
All kidding aside, no.
I feel more excited than ever.
I dunno. While I would like to see a broader adoption of the use of bitcoin, until it is more easily usable, someone like your friend might be better off in fiat. One uses the currency one is most comfortable with. I recently made my first bitcoin purchase, a mere $150, and it felt really good! If we want more of us to go in, it has to be more easily usable. This will happen when more of us use it.
I try to get friends to go into crypto and they all think I am nuts. I went in, kind of big, at just under 20, and am very happy today. Now they simply will not do it, not at this price. The minute by minute volatility (which your friend talked about) is daunting. Compared to the stock market, where you are encouraged to leave your money for decades on end, I imagine some just cannot really understand it. BTC is, basically, not boring enough for fiat users to trust.
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