Volatility & Market Format: Crypto

in #crypto7 years ago

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Circuit breakers introduce break periods where people are forced to “cool off” the selling in the Stock Market.
Without them humans sell in packs. It’s crowd psychology. Humans will continue selling rather than wait for news rationally. We’ve studied this and known it to be true for decades. That’s why they introduced curbs and circuit breakers and limits to how and when you can short sell stocks.
Because of this, crypto currency will always be more volatile then the stock market.
Bad right?
No wrong, these big crowd behavior dominated sell-offs present long term profit opportunities for buyers who increase their positions at discount prices.
It isn’t the volatility of an investment, but the profitability of the investment that matters.
Many believe crypto will be a ten trillion dollar market. That means the leaders will produce big gains for the investors who stay patiently invested.
There isn’t a solution to the volatility of a market that prides itself on non-restricted transactions.
Only time and the creation of great wealth to the owners of crypto currencies will prove to people that patiently investing for the long term is the road to riches.
Good luck and stay long!