Why this Bear Market is important

By Anfibio | Amphibious Thoughts | 22 May 2022

Nothing beats that adrenaline rush that comes from a bull market. Prices pumping, your investments multiplying over and over, the feeling of making money, dreaming about financial freedom.

However, as we all know, we are in a middle of a bear market.
Prices dumping, portfolios bleeding, money being lost and yet I feel that is crash is a necessary evil.

Below I will list the reasons why I feel so:

(1) There are over 19 000 coins according to CoinMarketCap. 19 000! And unfortunately most of the coins are either memecoins or useless projects. They do not add anything to the crypto space, no products, no services, tech or anything meaningful to invest our hard earned money.

This is one of the flaws yet to battle if we want mass adoption of crypto. Some years ago crypto was seen as something that only criminals used. Nowadays, the new story that is coming from the politicians, bankers and social media that crypto is worthless, has no value, and it is a scam. And in some sense, they are correct thanks to all the memecoins, scams and rugpull projects out there.

I hope that this crash eliminates all those unnecessary projects/coins. On times like this people seek solid projects, good fundamentals and real use cases (in the present or future) that may survive a bear market and build a solid space for future wide adoption.

(2) Do you know that famous quote from Nathan Rothschild, that states "the time to buy in when there's blood in the streets"? At the time of writing, the Fear and Greed Index shows us that the crypto market is in "Extreme Fear" with a score of 11.

Markets move in cycles. I know that right now we are in a bad situation with all the inflation going on, stock and crypto market crashing, and people losing money. But those who only invest what they can afford to lose have a wonderful chance to stock up their favorite crypto projects/coins. A so called "Accumulation Phase" were the first step is made to create wealth. Buying and accumulating in order to sell in the next bull market.

What are your thoughts? How do you feel about the current market situation? Share with me in the comments below.

This post is not meant to be financial advice.

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