Why the panic?

[w0t4n]

I am pretty new to cryptocurrency trading, but since i bought a few bitcoins like 4 years ago (and then forgot i have them), i figured i give it a try. i transfered just a couple of bucks to poloniex an tried to understand the market, which... btw... is totally crazy. Well i did my research on the coins i invested and bought some eth, lisk and dash-coins, holding back a little of my btc which i deposited in lending. i even invested in two icos (waves and rise), to see how that turns out.

Now, i realize i am a noob a these kind of things, but in the last couple of weeks i was part of two btc-price-pushes (one of which is still ongoing), and everyone is going nuts about it. I am feeling like i am missing something here.

So everyone is complaining about loosing money, but i don't really see, why they think they do. The reference currency on poloniex is btc, and bitcoin is currently rising over the top. So, naturally, the prices of other cryptocurrency _compared to bitcoin_ are falling. And everybody started to cry about that. But if someone bought - say - dash two weeks ago with his one bitcoin, and if he would sell it now for gaining 0,8 bitcoins, he still would have the same money, assuming dash did not change in price in reference to the dollar (or euro or whatever). Am i right, or am i missing something?

It is true, that he may now still have 1 bitcoin, if he didn't invest in dash, and this bitcoin would now be worth more money, than it did 2 weeks ago. But i don't get why people are crying, they are ruined, because the cryptocurrency they invested in is dropping in reference to btc.

Can you help me out understanding what i am missing?

[Velkro]

There is no panic, this is pure market business. If there is more demand price goes up, if there is no demand, price goes down since there are still mined new coins.
So nothing new here, we were in same situations like 2 years ago and before that.

[Sharky444]

What you are missing is this: If a alt coin falls while BTC rises does not automatically result in that alt coin rising when BTC is falling. So after the BTC dump happens some altcoins will be worth significantly less.

[Kprawn]

Where do you see this panic you are referring to? It's just natural for people to act out, when they bet on the wrong horse. Bitcoin just fights back every time and this leads to behaviour amongst

speculators, where they flee ...when things just starts to look a bit rough. They then start buying hyped up Alt coins like Eth and Ripple and when that bubble bust, they start moaning on the forums.

You should ignore the small bubbles in Bitcoin and look at the long-term investment... IF you bought Bitcoin a year ago at $200+ .... you would have made a good profit now. 

[Semidetached]

In terms of FIAT money they probably have the same amount but people around here like to do price comparison based on BTC which I don't agree with because you can't pay your rent or utility bills with BTC yet.

[BlueTemplar]

What you are missing is this: If a alt coin falls while BTC rises does not automatically result in that alt coin rising when BTC is falling. So after the BTC dump happens some altcoins will be worth significantly less.

The interesting thing is ETH seems unaffected by the swings of BTC as of late when BTC up and all the other alts go down ETH is staying stable

[unholycactus]

It's worth saying that not many exchanges or coins trade directly to fiat money.

It's usually traded in steps, first to BTC, then to fiat.

If it drops relative to BTC, you lose some value.

[w0t4n]

It's worth saying that not many exchanges or coins trade directly to fiat money.

It's usually traded in steps, first to BTC, then to fiat.

If it drops relative to BTC, you lose some value.

I don't agree. They earn less, because you didn't invest in btc in the first place, assuming altcoin rised less then btc, which is the case right now. But they dont lose money

[BTC2Social]

It all has to do with how the market works and how speculation works.

It's just a lot more volatile like 1990's penny stocks.

[w0t4n]

It's just a lot more volatile like 1990's penny stocks.

..which is fun Well i earn and lose a couple of bucks trading. But unlike normal forex-trading, where normally there is not that kind of margin between days, i learned, that people trading on poloniex are nervous people. 

[BTC2Social]

It's just a lot more volatile like 1990's penny stocks.

..which is fun Well i earn and lose a couple of bucks trading. But unlike normal forex-trading, where normally there is not that kind of margin between days, i learned, that people trading on poloniex are nervous people. 

Yeah, people seem to aim in getting profits in BTC rather then fiat.

[Herbert2020]

there is no panic, and the panic that you are talking about is only among newbie traders/investors who have no idea what they are doing with their money. they have thrown their money on bitcoin because someone said it is going to the moon and they will sell when another someone says it is doomed.

if you have a mind of your own, you will never panic and will always make good decisions which will lead to more profit.

What you are missing is this: If a alt coin falls while BTC rises does not automatically result in that alt coin rising when BTC is falling. So after the BTC dump happens some altcoins will be worth significantly less.

The interesting thing is ETH seems unaffected by the swings of BTC as of late when BTC up and all the other alts go down ETH is staying stable

because ETH is premine scamcoin which is being controlled by those who are holding the ~70 million premine coins. and anybody who is controlling that much money will control the price, his assets with all he has!

[JohnnyBrown]

No need to panic ,  Just study how markets run cause if you have a knowledge about this then you dont have to worry

[fllipperr]

why you should panic? cause price might go down or up so better be ready and have a knowledge about this.

[pearl11]

No more panic selling/ buying right now,, all of us  focus on the incoming halving..
And when halving ends thats the time we are seeing some some.panic.selling

[maltize]

If you dont have knowledge about this then you should be on panic mode  but for me theres nothing to be panic with

[StoreBit]

in present time i think there is no panic. panic is creating only when people start sellling bitcoin at the same  time. then the rate start decreasing. i think that is the time when panic is created.