The uncertainty in the cryptocurrency markets right now

FUD..

Fear. Uncertainty. Doubt.

So it seems like in the past month or so we have seen more than a few commentators posting about a supposed cryptocurrency bubble. Their arguments, for the most part, are completely valid. However, they mostly present just one side of the story, and a recurring theme is to compare this with the dotcom boom at the turn of the century. So maybe there are some parallels to be drawn here, but if you look at those same similarities that also means there are going to be some really big winners. Imagine you had invested heavily in either of google, amazon or ebay in the early days ?

Truth be told, I do believe in the short term we will be experiencing some corrections. We have been through some crazy hype cycles recently and cryptocurrency has now gained some measure of acceptance in the mainstream consciousness. Unfortunately, some of the newcomers to this space, are just not used to the volatility and they are a little psychologically frail. I would say that cryptocurrency in its current form is basically in an alpha state in terms of readiness for mass market adoption. It is at least 2-3 years away before we will see the first truly large scale use cases.

And to those newcomers I would say to realise that what you are investing in is in a new decentralised future that will have so many benefits to humanity as a whole. And to be realistic and understanding that this isn't going to happen overnight. In some senses this is also a revolution that may very well go down in the history books as a time where we changed as a species.

BUT. When you investigate the myriad of different cryptocurrency ecosystems out there also be careful. There is so much real promise and so many great projects, however there are also many only interested in short term gains and of course there are the scammers. Take your time, do your homework, most importantly - form your own opinion.

FUD sets in usually because of a lack of good news. There is this unrealistic expectation that the uptrend can only be an uptrend and nothing else. Occasionally there is actual bad news, and those are the only times I would ever consider a sell assuming the news warrants it. Most of the time though, the bad news is ... there hasn't been any good news for a while...

So, my advice for when FUD sets in and the price of a currency or project you truly believe in does take a hit, is to stay strong. Ask yourself if anything about this project has changed ? Is there any reason for you to doubt the technology you once believed in ? Price should never be the determining factor in your belief in something. Price and value are two very different things, if something has true value you just need to stay the course and your investment will pay off.

The other part to this, FUD is also a massive opportunity. Sometimes the best decision you can make is to jump into that burning building just as everyone else is jumping out.