Bitcoin Forum

no really, i'd like you guys to tell me why the fiat conversion indicator is not important :-)

When the price of the US Dollar goes down, do you get depressed?  Bitcoin should be it's own currency, blah blah blah.

No, you should be depressed.  Money just went poof!

Well,,, you shouldn't get depressed over something that changes so often..... maybe bipolar ?

That likely mean you are too long.  When the price enough I see it as a chance to buy more. 
When it drops a little I get excited it might drop enough to hit my entry point.
Sometimes I get depressed when it doesn't.

You need to start reaching your own conclusions of value and when the market disagrees you have your course of action.

Thats why economic downs are called depressions ;)

Yes, sell some when you are making a profit.
Save that money to buy in when price goes to low.
Than you will start to look at it like an oportunity.

But in the long run. Dont worry.
Bitcoin is the worlds only real digital currency you can own there are billions of people just waiting to discover what Bitcoin really is.

When price drops, short term speculators and people without fundamental belief in Bitcoin sell out.  The coins pass into the stronger hands of long-term thinking people who are not afraid to buy on declines.  This is a good thing.

Price drops, as long as they are eventually retraced, make Bitcoin stronger.  View them as a kind of toilet flushing.  Waste goes out, clean water comes in.

+1 :)

zoom out. price never dropped. sub-exponential growth. There are some short term bubbles which popped. (on that note you don't get depressed if the price changes from 10.3234 to 10.3133 within 10 seconds, why? ;) )

you're not alone. please try a regular running routine.

Let me explain it this way.

Have you ever played a game of Monopoly? This is a game meant to mimic the real world in terms of money and acquiring wealth. Do you know how the game starts? The first thing you do is give all the players a bit of money so they can play.

Now think what would happen if you decided to divide the game's entire cash supply between 2 players, and give the rest of the players 1 dollar. Would that result in a fun interesting game? Would the "poor" players even play?

Obviously a better game results if the money is distributed more evenly.

Bitcoin is not a Ponzi scheme. If it was then you should get depressed when the price of the "Ponzi" wasn't selling well. However, since Bitcoin is actually building an economy you should be happy when the money can be well distributed. Not giving too small a group the majority of money supply is how Bitcoin was intentionally designed.

Buy the Dip. price drops are a gift.

+1

Here is another way to think about it.

During the first 4 years, Jan 2009 to Dec 2012, bitcoin inflation is 2,625,000 coins per year (https://en.bitcoin.it/wiki/Controlled_Currency_Supply). Beginning 2013 that amount will be halved.

Imagine you tore up some pieces of notebook paper and stamped "paulie_w" along with a happy face on them, intending to sell them. You go to your neighbor and ask how much he'll give you for one of the papers. The reply is nothing. After 3 hours of begging and pleading you collect $0.25 from him for a paper. You go to the next neighbor and start the process again.

Working all day how many pieces of paper do you think you could sell? And at what price on average? I'd guess about 20 with an average price of $0.08.

You started with something of arguably no value and collected in exchange something of established value.

Now, realize that every single day approximately 7,191 new bitcoins are created and sold, with a current average price of $10.

The above is a sure fire symptom that you are being emotional. Emotions and trading and investing go real bad together. It is effectively a guarantee that you will lose money because you decisions are dictated by your emotions.

here is your prescription:

1. Reduce risks you are taking;
2. Read classical book by Jesse Livermore "Reminiscences of a stock operator";
3. Jump to step 1 unless you are no more depressed or ecstatic on every little price movement;
4. Profit.

google: jesse reminiscences of a stock operator

I'm super long so I can't buy more with fiat, but I don't get depressed because I'm earning bitcoins. I'm pretty sure I can earn more coins the longer they stay undervalued.

The more the price drops, the happier I get!

Why? More cheap coins, of course...

FYI I am on record calling for $1 coins again eventually, as loony as it makes me sound LOL

In my mind, bitcoins are worth $10. I used to see them as worth $5.

We can get used to anything if we're willing to adapt. : )

I have invested very little (back when that could get you a few hundred coins)....I'm just along for the ride. I'm having more fun being part of the community than I would if I sold.

The first thing to realize is that bitcoin is not a stock.  There are no earnings reports or forward looking statements that could impact your investment.  It's a distributed ledger system.  It trades like a commodity.  As long as the integrity of the system holds and people find it useful, its adoption will continue to rise.  And the price will rise along with it.  If you only invest a part of your savings and don't need that money in the near term (i.e. you are a "strong hand"), there is no reason on Earth to ever sell your bitcoins for less that what you paid for them.  As has been said, price dips shake out the weak hands (people that either need their money back near term or that don't think bitcoin will last).

I've read this, its solid material for anyone who wants to take trading seriously. Its also on many investment banks' reading lists for fresh graduates.

Certainly a very good book but I thought it had pretty depressing ending. Not something I would read if I were already depressed.

Also the author is Edwin Lefevre and not Jesse Livermore.

Good read, absolutely nothing has changed. These days the debating HF-trading as an evil, in 1906 The ticker had lag compared to the floor traders! You could trade in whatever name you liked in the bucket shops and cashout in cash though you most certainly had been stripped before going to the teller boy!  It's also a good read concerning getting tips from others and your own hunches. Could not stop the feeling that I was reading old forum posts from a hundred years ago. Talk about Bitcoin being covert! Bitcoin is several times more transparent than stocks way back then!

Because just like the stock market, some people are more psychologically 'resistant' to short term swings in price. Until one can train their mind to be more long term thinking, it is easy to look at the price hour by hour, day after day and worrya bout what will happen next.

That said, one needs to keep informed so that if 'it hits the fan' then they can get out before it gets too ugly (like when a company or the currency might start to fail and loses long term viability, but even then it is a gamble, if you buy when its cheap, you can lose all, or gain a lot if it recovers).