How ya feelin’, bud? You OK?
Don’t do it. Don’t dump your crypto. Don’t listen to all the people you tried to help back then (and even now), all the people laughing their ill-informed asses off in their misplaced schadenfreude.
Honestly, they’re only riding you about your crypto losses to deflect from their own much more significant stock losses and the looming housing market collapse. So, set your phasers to “ignore.”
Because this crypto crash – whatever its cause (which, frankly, can no longer be solely attributed to Terra Labs’ epic dual crypto collapse, albeit LUNA and UST have a lot to do with how we got here) – is going to be a lot shorter and less painful than all the fiat disasters snowballing down the hill.
But all that said, maybe get a few extra cans of Campbell’s at Walmart this weekend. Just to be safe.
Now, if your terrified and projecting friends and family have gotten to you a bit, be sure to step back and recalibrate your perspective to what it was a month ago.
Remember, you’re not in this to make a quick buck – You’re in this for the long haul.
And if you’re a Cardano hodler, the coin’s previous all-time high (ATH) is unlikely to be its all-time all-time high (ATATH). It may take a little while to get back north of $3.00 per ADA coin, but we will get there. And then we’ll get to $5.00, and then to $10.00, and so on.
Early retirement is more impending than doom.
Unless, you know, you did something truly stupid and took out a second mortgage on your house to buy ADA at $2.50 or some similarly ill-advised nonsensical thing.
Remember, crypto investing – like all investing – is a gamble. And all smart gamblers share the same singular mantra:
“Don’t risk more than you can afford to lose.”
It’s that simple.
Every time you buy some cryptocurrency, you have to be okay with that haul going to zero. If you’re not, you shouldn’t play the game.
So, by our reckoning, most of you probably aren’t losing too much sleep over the current crypto crash.
And that’s the smart approach.
That said, we won’t act like such dips aren’t concerning. As far as annual crypto crashes go, this one’s a whopper.
But it’s not the biggest by any stretch of the imagination. In fact, it’s only all over the news to distract you from things that matter a whole lot more, like all those hundreds of high-yield industrial farms burning down all across America by some cosmic coincidence. Or that tenuous situation in the Ukraine. Or the blatantly inorganic and outrageous price of gasoline pretty much everywhere.
Remember, even at its absolute height, crypto is an absolute baby when it comes to the financial world. And not just because it’s only been around since 2009 or so.
No, crypto – when Bitcoin was booming at $65,000 per or thereabouts – had a total market capitalization of around $2 trillion. Perhaps a little more. And BTC made up just under half of that.
That sure sounds like a lot, doesn’t it?
Well, here’s what the market cap for physical fiat currency is right now, globally, in USD: $40 trillion.
But that’s just government script that’s changing hands. You know, stuff in debit accounts and savings accounts.
Factor in things like funds tied up in precious metals, credit lines, real estate, businesses, stonks, and suchlike, and the number is – by most credible estimates – somewhere in the region of a quadrillion bucks.
If you want to see that in numbers, it looks like this:
That means that at crypto’s highest market capitalization to date (achieved around April 2021), cryptocurrency accounted for a mere 0.2% of all global tradeable wealth.
The people busting your chops about your crypto losses are losing orders of magnitude more than you – with the added bonus that their losses have meaningful long-term ramifications. Your losses, meanwhile, will be recouped before the next US President takes office.
And that’s if you just sit still.
However, if you’re not sitting still – if you’re buying the dip right now – you might very well be positioning yourself for a brighter future than ever. This current crypto downturn might set a new basement, but it’s a basement that’s always climbing higher and higher.
When’s the last time the US dollar appreciated in value?
So, will Bitcoin drop below $18,000 or so? It might, but it’s already recovering from when it touched $21,000 a day ago. Similarly, might ADA ever plummet to $0.12 again? It could, but that won’t mean you were dumb for buying in today at $0.50.
Honestly, right now – this very minute – is what you’ve been waiting for for heaven knows how long. This is the crash where you swore you’d buy in.
Just remember to keep it reasonable, remember to buy lots of ADA, and remember to delegate your ADA to a Cardano stake pool as soon as you do.