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Yeah, this is the dilemma, but can't beat yourself up too much over it. I mined my first bitcoin in February 2011 just out of interest in this cool experiment,
by cookiecaper 9y ago
Yeah, this is the dilemma, but can't beat yourself up too much over it. I mined my first bitcoin in February 2011 just out of interest in this cool experiment, not expecting it to go anywhere. I've always had a bit of btc in reserve but every time there's a big jump the impulse is "Better sell out of this silly bubble while I can". People who imagine that they'd have $50M today neglect that they'd most likely have had a similar reaction when it was $20, $100, $500, and so on, and it's unlikely they would've held a substantial portion until it hit $20k.
I think the part that's hard is that there is a stickiness to hype. Hype starts as baseless hype, but the belief and interest of others is frequently enough to sustain a company or project that has nothing of actual benefit to offer. This makes it hard to dismiss hype-fueled bubbles entirely. There's a circular effect somewhere here that converts the initial baseline hype into value just by the sheer force of will of "true believers".
This applies not only to bitcoin/litecoin, but also companies, software, and all sorts of other things. Generating hype, goodwill, and other mostly-positive forms of human attention is inarguably more valuable to a project or venture's long-term lifecycle than providing actual objective value. Get enough attention or interest on something and any objective value that may potentially exist is liable to materialize, at least in part.
- sah2ed 9y agoYou have essentially described what economists call positive feedback. Positive feedback loops are self-fulfilling. https://en.wikipedia.org/wiki/Positive_feedback#In_economics https://en.wikipedia.org/wiki/Positive_feedback#In_economics