A few months ago I listened to an audiobook about Long Term Capital Management, both their rise and their spectacular fall. Their largest error was one I could

A few months ago I listened to an audiobook about Long Term Capital Management, both their rise and their spectacular fall. Their largest error was one I could easily see causing a catastrophe in cryptocurrency markets. Some call it a "liquidity crisis" but really its a matter of no one being willing to buy. LTCM was witness to a situation where it was positively idiotic for everyone to be getting out of the market - but they were anyway. Humans are skittish, irrational creatures, especially in large groups. If you operate on the 'rational market' hypothesis, you're wrong. Plain and simple, just wrong. That's not how it works, or how it has ever worked. Panics happen. People hurt themselves in order to limit their exposure to even manageable risk. But, their main insight stands, really. If you can hold long enough, things converge. It's the 'hold long enough' bit that can sometimes require a wait that costs more money than there is in the world.