The evening of May 19 was probably the night of horror for the crypto community, as the Bitcoin crash shook everyone’s imagination and previously presented scenarios about corrections in the bull market, the 2017 crash, but when Bitcoin fell to 53% within a short period of time, Has it brought extreme fear to investors in this market, are these the first signs of a bear market? Nobody can predict, every scenario can occur unexpectedly and quickly.

Extreme anxiety level on May 20, 2021 after the 53% crash

Psychology, trust and stability do not come from times when Bitcoin is going crazy, but from times when there are potholes and elephant holes like this one, we can see who is still firmly on the ship to the moon and who is affected by the storms This shock throws him off the train!

Knowing, thinking and understanding what you are investing will help you with those panic attacks, why it is easy for people to buy when prices are rising and sell quickly when prices are falling. Because they just come in to “play” but don’t really understand and believe what they are investing, they don’t have the “roots” to dig deep into the ground to hold them back from the devastating price storms, you are investing in what is the crypto market for? “Make money”, everyone, sure, but do you really understand why the price has gone up? And what is their worth?

If you are investing money in something that you do not understand, it is gambling, you must understand it in order to be called an investment.

-Thuan capital-

If you haven’t really answered the above question and are still very vague about what to invest, you will become “soft hands, weak hands” and very easily carried away by the price storm in this market. merciless when there is no “root”. To hold you back, those with “diamond hands” aren’t stubborn, stubborn people who don’t care about life whether the price goes up or down. Essentially, they have a very good understanding of the value of what they are investing in and know why they are rising and how much they can rise.

And if you don’t really understand it, just listen to the advice of friends in the area or the media reports that you are investing money in hopes of getting rich quick, you haven’t been rich in time, the market has all your money. , this is a tough and very marginalized place, and not everyone makes money in the market until bitcoin is the largest market cap and most influential coin that you have not yet seen. If you really get it, it’s hard for me to imagine how to put money in weird or weird coins with far-flung reviews on coinmarketcap.

FUD information like Bitcoin mining consumes electricity, is too centralized, is not really rare because it can be shared, countries prohibit the use of Bitcoin, is too volatile to become a means of payment … actually this FUD information needs that question You put knowing that many people have asked before you and the answer is also available on the internet, you just need to spend a little time to understand that the above information about Bitcoin is almost untrue.

I have to admit that Bitcoin is an abstract, intangible and very confusing thing, it is not like gold, real estate, stocks, commodities, if you look at it you can see and understand its value. , a lot of people only understand “slightly”, it will. It is easy to make seemingly very reasonable arguments like this:

• Bitcoin fluctuates then never becomes a means of payment.

• Bitcoin itself has no intrinsic value, everything is due to human greed that drives the price up.

• The power to mine bitcoins is equal to the power of a country, which is only used for processing transactions, is too wasteful (this is a very interesting topic and will be covered in another post).

• Transaction processing speed is too slow compared to Visa, Mastercard, when can we compete?

• And many more arguments …

If you hear the media or an influencer making the above arguments and then completely changing your beliefs about Bitcoin and you have certain doubts, then I recommend that you research carefully what you are investing in to get a solid stance. This is the term for investment people call “fundamental analysis”.

Previously, I had an article Bitcoin – A Store of Value through Michael Saylor’s “Fundamental Analysis” which in part helps you to have a deeper and multi-dimensional view of Bitcoin compared to other assets and a This is the greatest revolution in The 21st Century Can Only Knowledge , Confidence and skills bring stability and the highest odds, no matter what market, it is not born for everyone. Earning money, money will flow to only a few and the few who understand the value and market rules.

Which scenarios are possible?

The final strong and deep correction can serve as a wake-up call to rethink what we are doing with our money, whether we have a gambling mindset or are serious about what we spend our money on.

Now we have come a long way in the “Bull Run” and no one will be able to predict when the top will be and what the price will be, these are two questions that no one will ever answer for you. Be on all possible scenarios for Prepared your account, for new entrants, small and strange coins are no longer the top priority, you have to prioritize security. Together with good knowledge preparation, these will help you to penetrate deeper and deeper into the market.

The Bitcoin scenario will continue this correction and fly to the moon or stop here and enter the bear market, we are investors and no one wants scenario 2 to happen that day, the market for it too, but if this scenario were to happen what would you do do next, would you still believe in the worth of bitcoin? the past of understanding what makes Bitcoin valuable and where its capitalization potential lies. Frees you a little from the fear of upheaval, because it will get where it needs to be, no matter how often it stops and rests.

If the reason you’re investing in cryptocurrencies is because the price keeps going up, then it wasn’t until the 20-30% drop that you lost the reason you started investing because you just believe that the Price rise vaguely becomes fragile because when price goes up, you fomo step in and price goes down, leaves you panicking.

China and countries prohibit Bitcoin-Cm

The history of Bitcoin and China is a long one. Have you noticed that in addition to Bitcoin, China also bans anything that could endanger its monopoly? The long-term and close relationship between Bitcoin and China right now is that there are many centralized mining pools in China, with many large concentration pools in China being the same as many processing factories, and the factory being concentrated in China, so why not? not Nike, Apple, Canon … do not manufacture the products in your own country but bring them to China? A very simple reason is that it’s cheap, it’s a market economy where working at the lowest cost brings the greatest profit, it will attract factories, businesses and even the bitcoin mining industry. , The Bitcoin network has a very good balance of interests. All mining operations are voluntary if they see benefits from them. If China forbids it, they will find other alternative places to continue mining and make a profit. And you can understand more that if China bans Bitcoin mining this time, the Bitcoin price will surely fluctuate a lot in the short term, but in the long run will China still have an impact on Bitcoin?

Bitcoin got to where it is today not through support, but upwards, but through crushing, defaming, banning, indicting … In the end, it overcame everything and has continued to grow. Censorship and blocking is a test Bitcoin must pass to prove its true worth in terms of decentralization and censorship resistance. The nice thing about decentralization is that there won’t be a 100% consensus between countries in the world, so one or many forbidden countries does not mean that the whole world is banned, for example in Vietnam, which bans the sale of weapons in the US can freely buy and sell. If it can’t withstand censorship, what is the value of bitcoin’s decentralization?