Feb news
Hello everyone, it’s February 1st and Bitcoin is still down considerably since November 2021 All time high. During these times, investors, the mercenary traders and speculators usually open the stress hormone gates wide open and allow a flood of stress hormones to enter their brains and bodies. These people generally like to have a narrow lens of view or a short time horizon.
During these times, its important to widen your lens and zoom out. When you look at the big picture and look at the adoption growth of bitcoin from its inception to now you can see the patterns.
I often compare the growth of bitcoin to the making of a wax candle. Candle makers take a pot of liquid wax and dip a wick into the wax and then pull it up.
When this is done repeatedly, you eventually make a full candle. Each time you dip the wick into the wax and pull it up, you see 80% of the wax drain off and back into the pot. You will see 20% of the wax stick to the wick and form solid wax.
You can see the same thing in the bitcoin growth or adoption. Every time there is a wave of new adopters, you will see the price of bitcoin go up. There is usually 20% of the new adopters that make an honest effort and spend the time learning the technology and the Value Proposition. These are the ones that get it and stick around. 80% of the new adopters drains off because they never put in the time and effort to figure it out. When the price starts to fall, they panic and exit.
When this is done repeatedly, you will see the candle grow over time.
So I must end my commentary with the oldest Cliché ever!
“when in doubt, Zoom out”
