July 16, 2017
Let’s be perfectly honest. The current bloodbath that patient cryptocurrency investors have had to endure for the past month has been painful both financially and emotionally. Many have seen their portfolios halve and their profits wiped out. Dreams have likely been torn apart.
It has now been over a month since ether peaked at just over $400, now it has sunk to $140 with no end in sight. Week after week, technical forecasts have become more akin to wishful thinking rather than solid analysis. Cryptocurrencies have broken all the rules. The parabolic drop in price action has been ruthless and relentlessly painful to watch.
“I should have sold at $400.”
Haven’t we heard that before? Hindsight is a two-faced beast; both an enemy and a friend in disguise. Feelings of regret are natural but that is the easy response. Learning from hindsight is much harder. The sooner you can detach your emotional response from market outcomes the better as timing the market has a high probability of failure.
1st of August will likely be a turning point for the entire cryptocurrency market. Most of us now have no choice but to wait patiently for two more weeks when the true outcome of Bitcoin’s future comes to light. The possibility of Bitcoin splitting in two has already unnerved the markets contributing to the daily 10%+ drops across the top 20 cryptocurrencies as many are deciding to sit this one out and would rather hold fiat. On top of that, a lack of significantly positive news and the reckless ICO dumps have accelerated the fall.
The fall does not demonstrate a lack of confidence in cryptocurrencies. Likely a year down the line we will look back at this moment and say how foolish we all were in thinking that this was the end. Empty Bucket predicts that a hard fork will be averted and as fears subside, a new bullish wave will occur. All-time highs will be surpassed within the next few months as a renewed sense of confidence will contribute to another parabolic run.
Early retirement – keeping the dream alive
One of the big motivations of investing in cryptocurrencies is the prospect of retiring earlier than you could ever imagine. There have been a few stories lately of the successes of the new rich. Most noticeably for us, there was an article posted in Forbes about a man traveling the world on $25 million of Bitcoin profits. He managed to do it because he bought Bitcoin 7 years ago when it was $0.15.
Those numbers are astounding and likely the thought of being him will make most of us green with envy. However, there is no need to have all of that to retire comfortably. In another post we’ll go through the finer mechanics of reaching that goal but in brief, motivating yourself to achieve any goal is to break it down into smaller chunks. Rather than thinking about an overall lump sum that you need to attain, consider it from the perspective of replacing your current pay check. That is a much more attainable figure, psychologically, even though the math ends up being the same.
If you are able to replace your monthly income then you’re there. So the first step will be to calculate your monthly expenditure and be realistic with your figures. Accumulate assets that will provide you with a passive income flow that can cover that expenditure while watching your cryptocurrency portfolio continue to grow.
Have faith. Keep your dream alive.