This article of QuantVan is discussing on Good and Bad points about Bear Market.
and we will consider that when this market can be beneficial or non-profitable for you, so you have a better performance regarding to this knowledge.
There are so many people who can’t bear the bear market. The discomfort is not so severe in the beginning, as most people expect the initial drop in price will be temporary. As soon as the bear market continues, the frustration will increase.
The price of Bitcoin is expected to have an increasing trend or at least remain stable. As a result, users expect a form of linear progress. Since the rise in the price of Bitcoin in the last seven years is X %, people expect to remain the same.
It is clear that in the real world nothing, including the Bitcoin, has linear trend. The prices of different assets hold a sudden leap and that is quite natural. For example, Bitcoin has spent several times cutting down prices ranging up to 80 %.
The main reason is that many people want to earn money without even trying, because if Bitcoin have a steady – rate increase in price, there is no need to get salary.
In Following we will meet the negative points of the bear market.
Why the bear market is very unpleasant?
The first reason: the financial pressure
And also the Stress. especially the stress that you can’t manage, can ruin you financially. If you have a lot of debt or facing lack of supports, this is a time that bear market can make your conditions worst. And that’s not good at all
The first rule of investment is that you do not disappear from the market but the bear market is the time when this rule plays the most part.
The second reason: the social pressure
It seems that financial pressure was not enough, including “I told you that” the critics, expressed in every bear market, also added to this situation. It can be even worse to hear such a statement from friends and acquaintances. Unlike the upward trend that people behave you like a genius, the bear market will also disdain you socially.
The third reason: the less opportunities to gain profit
There are plenty of Start – ups and projects that look for people with all sorts of skills. In this case, seems there are some unlimited opportunities to earn an endless profit.
and if you have a good record, you can earn a lot of benefits from consulting, marketing and other things in a contract or with a fixed salary. The downtrend, becomes more difficult in the downtrend. Different people will see you unnecessary and the projects that have sunk in money will think of saving money
Why bear market is good?
The first reason that we can say the bear market is good, is specifying unsuitable investments at the time of Ascending market. In the increasing trend, many projects with the unfounded assumptions attract large sums of capital.
Some projects only managed to get $ 100 million invests only by placing Wyatt News. The level of inappropriate investments in this area over the past few years has been enormous, and many of those projects have disappeared.
This is a good subject because the resources of these projects can be used in more useful measures. According to the Austrian theory of business cycle, modification in the market results in better companies and organizations.
In other words, money from bad actors hit people who know what they ‘re doing, and that’s a great point.
The second reason is to determine issues that are really important. During a high – pressure bear market, useful projects will only remain.
In descending bazaars, we can find out what is really important to people because people sometimes choose their choices based on what they want. In another bear market, they don’t buy all the ICOs and rather considering at what they really see, so make their choices with more precision and logic.
They quit the FOMO and do their research on the project. The smarter market is a good point because the better allocation of capital leads to a more prosperous society.
The third reason is that it teaches you hard working and being smart. In Ascending Market There are easy jobs and low expectations. In bear market, employees are hired on the basis of need and more detailed examination.
This means that as volunteer for getting a job, you need to provide a real value.
that leads to hard working and being smart. You will not be hired in a bear market if you don’t offer real value.
The fourth reason is that it will develop your personality. Many people complain about the luck of Bitcoin’s early buyers.
Long – term owners are not lucky but they believe in their actions. Many people bought Bitcoin in 2010 and 2011, but also many of them sold their Bitcoins because it was a game, gambling for them.
They don’t bother themselves to dig deeper into the understanding of Bitcoin, or maybe they tried hard but never convince.
The long – term keeping Bitcoin is not an easy job, and the Descending market is the main reason. For instance, will you keep it when the price is down to 80 percent?
If it’s a bear market giving a positive answer to this question is easy. But maintaining a digital asset and passing a bear market requires a firm conviction.
Also, make sure your position is not under pressure so you should not buy something that is out of your affordability. You need to have an accurate plan for the future and stick to the values you have in mind. The ascending market offers you many opportunities.
The bear market forces you to make tough choices. In any ways, If you do the right choice, your personality will develop
The bear market is an essential part of any economy, especially when inappropriate investments have been made in the past few years. The redistribution of resources from what people do not want to something they want is the main advantage of a bear market.
There have been a lot of fluctuation in the past few years in the world of Cryptocurrencies. It’s not easy to get through this reorganization, but if you pass through this stage and have maintained your Bitcoins, you have done something worthwhile because you will benefit from the next ascending market.