I know people don't like what's been going on lately with the market... That's ok! Everyone has their own tolerance limits. Everyone has their worries and doubts. And markets are experts at playing and preying on our emotions, even more than taking advantage of our inexperience when we first arrive with our hopes up.
Market makers (not literally) aren't called sharks for no reason!
But if one can detach a little bit from the emotions provoked by the sharp decline in the price of HIVE, for example, we need to remember what I said in the title.
Technology, incorporated in various businesses, is the long term trend setter. There was a time when the companies with the highest market cap were industrial. Now, they are all tech-based, at least in part. Market only creates short to medium term variations if we zoom out. Of course, that means there needs to be technological progress to have an uptrend. As a whole there's an accelerated technological rate of progress in the world, but when you analyze domain by domain and business by business, they evolve at different paces. That's how some end up being disrupted, and others, despite being pioneers in a field, either lack the vision to continue, or the proper management to keep going once the startup phase of the business ends.
I often said we have too many gamblers in the crypto verse. But in a way, these things happen naturally where high profits on the short term are possible. Protection of gains is another thing that may trigger short term actions, with a positive or negative outcome.
These periods of disbelief in the market do flush out many of the people without any loyalty in various projects, and in a way it's a cleansing mechanism in crypto. That doesn't mean that everyone who sells isn't loyal. As I said, markets prey on our emotions, and that can be a powerful trigger. But it is an opportunity for others with a long term perspective and interest in different projects to slowly pick up the pieces in the market after the distressed sellers (and not only) dump their assets. If there isn't an initial unfair distribution, that's one way how some people who stick around end up with significantly more stake in the projects they love and support than others who are more like passengers.
Understanding that the long term trend is given by technology advancement (most of the times) doesn't mean one can't take advantage of obvious triggers in the market.
If we put aside the long term plan, which apparently only a small fraction of the people in crypto is really interested in, sometimes we need to outplay the market to stay ahead of the game. But on average, the market outplays us, whoever we are, especially if we focus on the short term movements.
When the 30 cents support of HIVE was broken and recapturing it failed, I understood we are going to see some major red, particularly since it was the short term trend in crypto. Wasn't sure where it would stop, but it was clear it needed to go down pretty sharply before it found a support and gathered the energy to raise again.
So I sold some liquid HIVE at around 28 cents. My mistake was that I purchased SWAP.BTC on Hive-Engine, instead of HBD. It would have been better to buy HBD. But I wasn't sure what BTC was going to do, and I preferred a volatile exposure instead of HBD.
In my Hive goals update from yesterday I also mentioned that I started to buy HIVE with my HBD reserves. Small amounts every day. I will also start buying back SWAP.HIVE with SWAP.BTC because it will reach a price range from where its volatility will be higher than BTC's and ETH's in the up direction too, when it reverses course. That doesn't mean HIVE won't go lower, by the way. It could... It is dependent on what happens in the crypto market, only it started to have a higher volatility since it broke down through the 30 cents support, which is normal for a small cap like HIVE. Abnormal is to be stable. That's what HBD is for.
Overall, keep your eyes on the technology and what it can mean for human kind. Markets help or make things worse for the average investor and often for the businesses they refer to. Usually they make things worse, but the long term trend of the technology helps everything go to higher levels of performance and efficiency, at least...
Want to check out my collection of posts?
It's a good way to pick what interests you.
Posted Using InLeo Alpha