Because the hype train has moved onto another cryptocurrency. And that can be a good thing for you. This is a common pattern that, if you’re new to cryptocurrency, seems kind of odd. See if this scenario seems familiar:
You’ve been in cryptocurrency for several months now. You bought a bit of BTC or ETH, but you’re noticing that they’re not taking off like other alt-coins. You decide you want to really commit to one token, ride the wave and maybe make an impact on a project.
Then, on some tweet or facebook post, you see someone talking about a new cryptocurrency no one is talking about. They say it’s getting ready to explode. You find it on some secondary exchange, learn a bit about the team and realize that this is actually something with potential. You invest in and hope for the best.
And then… pop! The price shoot up 40, 50, 60% in a single day! People are cheering on the cryptocurrency in the news and on social media. Everybody wants to get in on the cryptocurrency you now own. You can actually talk about it because you have a bit more background knowledge than everyone else. It seems great! This is where you’ll commit long-term. It’s the future.
And then things slow down. First by a little… then by a lot. The price jumps a few points here and there, but it’s being outmatched by other cryptocurrencies that are having their day. You go onto your subreddits and slack channels and see what’s the matter… but no one really has an answer, not even the developers. Even if you’re still making a good return, it seems like everything else is taking off.
For almost every single cryptocurrency over a year old, this has happened and for a lot longer than you think. The bear market for Bitcoin lasted for three years. The faithful stuck around, but most people left when things get dull. For all the current excitement, cryptocurrency is going to be boring 90% of the time… and maybe even a bad investment long term. You’re living in a very strange time right now, one that is impermanent compared to the normal state.
IOTA had it’s big day and now it’s not in the spotlight. Today, it’s all about TRON and XRP. Next week it will be about something else. Maybe it’ll be IOTA again… but maybe it won’t. Eventually, it will be about nothing because the excitement will move away from cryptocurrency all together and it will just be the nerds and the true believers again.
If you’re in it to make a profit, that’s okay. I don’t see any problem with making money in this industry. But the real value, where you can invest in yourself, your products and your relationships, happens in the quiet periods when no one is paying attention. If you’re looking for the next opportunity, don’t look for another token, look deeper into the one you’re currently involved in.
Originally published at www.quora.com.
Create your free account to unlock your custom reading experience.