Reasons why Long- term investors fears over drop in Price of Bitcoin

[VivaMan]

Bitcoin is  really growing rapidly, and alot of country's has formally adopt to the  system, using it for all kinds of payments in the society. Due to it fast and reliable system, people are really investing and trading on Bitcoin rapidly without fear and the system is trustworthy , fast in transactions and multiply after trading.

Now I will like to analyze so specific reasons why Long-term investors fears over drop in Bitcoin Price.
Formally Long term investors do expect volatility, expecially when it's drops. Sometimes it's makes them feel's nervous and pained expecially when it's affects their personalities for those investors that trades on Bitcoin, it affects their net worth on paper, makes people sells their Bitcoin unplanned.

Another factor is fear of losing gain, social worried, emotional regret, etc. one can believe in Bitcoin for  long but intellectually it's volatile it rise and down fall can happen in an twinkle of an hour.

Sometimes Long term investors usually have this on their mindset
1. Time regulations :investors sometimes thinks in 20-25 years time it reacts differently from someone hoping to double it's profits in 6 months time.

2. If price drops below the cost of mining for too long less efficient miners shut off for sometime.

3. The Bitcoin market is saturated.

To be strong when this happens:
Have an emergency funds separate
Buy and keep predefined dips aside
Be on two sides etc.

In conclusion
As a mature Bitcoin investor your mideset towards losses is ought to be mature don't assume have it at the back of your mind that , it's volatile before entering, be disciplined, and control your emotions so it won't affect your mindset and decision.

[Oshosondy]

Have an emergency funds separate

I have emergency funds in bitcoin, stable coins pegged to United States dollar and in local currency. The local currency is the worst because it has reduced almost 5 times in purchasing power within 3 years. It is followed by the USDT and USDC that I have. The best has been bitcoin, but I do not just buy bitcoin blindly. I started buying bitcoin when its price has just fallen after a long period of all time high has been the time I buy bitcoin. Bitcoin is very different if you can follow a good buying plan.

[Zanab247]

Not only long term investors is afraid of dump of BTC price OP, even newbies too are afraid of BTC dump, because they understand that bear market is not a good mood market for hodlers to start selling their BTC than to encourage themselves not to sell at the moment. We know that long term investors earn massive profits from the market than short term investors, but if you don't have other sources of income it will be hard for you to enjoy long term hodling, because even though you want to hodl for long years the current price will make you change your mind to sell to earn small profit, but if you have other sources of income it will be hard for anything to discourage you to sell your BTC in a short period of time.

If you are financially buoyant you can involve long term hodling, because that is the simple strategy majority of BTC investors are using to grow financially, because they will not allow any financial challenge to make them to change their minds not to hodl for long years.

[Agathamay]

Have an emergency funds separate

I have emergency funds in bitcoin, stable coins pegged to United States dollar and in local currency. The local currency is the worst because it has reduced almost 5 times in purchasing power within 3 years. It is followed by the USDT and USDC that I have. The best has been bitcoin, but I do not just buy bitcoin blindly. I started buying bitcoin when its price has just fallen after a long period of all time high has been the time I buy bitcoin. Bitcoin is very different if you can follow a good buying plan.

Do you have to wait for a certain period of time before you buy like you said you had to wait for the price of bitcoin to drop after it stayed up for a long period of time before buying and I'm curious to know how efficient and effective these your technique works for you ?
In other words you only buy during the dip and maybe have to wait after four years before buying right? Because the time you will get bitcoin hitting a new ATH before maybe thinking of a dip and since you only buy after the coin after it have stayed at an ATH for long before  it starts to dips

[HeatBit]

Makes no sense to me, long term investors are not new, they know the game that bitcoin is playing, if they aren't prepared to see Bitcoin dump then they are stupid, I expected all investors to have secured some profits from Bitcoin already.

Even miners are taking profits, selling some bitcoin back into the market, it's called de-risking.
Newbies who have no past experience about how bitcoin market moves are the ones that should be panicking as expected.

[coinlary]

You keep repeating  the word "fast" when it comes to transaction but the truth is that , when compared to most altcoins it's  actually not as fast but when but in term of reliability, Bitcoin surpass all altcoins. 

To be strong when this happens:
Have an emergency funds separate

This should always be part of any investor plan before making any purchase to that self-custody wallet. I'd you eventually get caught on guard, you will surely have to withdraw and it could cost you some sats out of your initial capital.

[Donneski]

3. The Bitcoin market is saturated.

I don't totally agree with this your market saturation point. We've seen Bitcoin survive cycles that many thought growth wasn't happening again but adoption still continued.

The major fears during dips are mostly caused by emotions. During the bullish trend periods everyone automatically becomes long-term investors but it's actually in the bearish season that we undergo the real test of  conviction.

[uchegod-21]

Every reasonable long-term investor does not look at short-term gains; they look at the bigger picture in the future. What long-term investors do during price drops is use the opportunity to accumulate bitcoins and still stay focused. Prominent and institutional investors are doing it and have been very consistent with it. This is the difference between long-term investors and others.

Long-term investors understand that volatility is a major part of Bitcoin, so they use it wisely. That is even the major reason why they opt for long-term hodling in the first place. So, if there is any investor who panics whenever there is a drop in price, then that investor is not ready yet to be an investor. He doesn't have a long-term projection for his investment.

One mistake anyone can make is planning to be a long-term investor without a stable source of income or reserve funds.

[legiteum]

Bear cases for Bitcoin involve it becoming "the MySpace of digital currency". In other words, the system that started it all, but failed to evolve with the market, leaving it to be replaced by newer competitors. Today Bitcoin has many very huge and well-funded competitors, so that is a danger.

In the marketplace, one thing that some think is the price of Bitcoin down is competitors in terms of activity: sports betting apps. In other words, instead of betting on Bitcoin, these new apps that have recently become legal in the US and elsewhere are allowing people to bet on sports instead. They might be completely different, but Bitcoin is competing for the exact same consumer dollars.

The bull case for Bitcoin is related to US politics: many think Trump and his party will stay in power for a very long time, and Trump himself stands to gain $billions if Bitcoin goes up, and he's shown that he prioritizes his own profits before the country's. Trump can use the US government's $trillions to do all kinds of things to pump the price of Bitcoin.

Of course that bull case comes with a flip side: Trump and his party losing power could reverse everything, and Bitcoin could lose 95% of its value if another party is elected in the USA because of the political backlash. Live by the sword, die by the sword as they say.

[d5000]

I don't understand item 1, but let's see the other two:

2. If price drops below the cost of mining for too long less efficient miners shut off for sometime.

This may be a real concern if the price drop is very steep and long. But normally the difficulty mechanism generates a smooth adaptation: if too many miners drop off, some of this "no longer profitable" group may be able to join mining again when the difficulty has dropped in the next period.

Some miners may even use these low difficulty periods to step in again after a period of abstinence if they have the capacity to hodl the funds for some years (if they expect a future price rise).

3. The Bitcoin market is saturated.

Saturation depends on the exact use case for Bitcoin.

If Bitcoin stays speculative without any real use, then indeed a saturation may be fatal: if too many people fear there will be no upside anymore, then many will sell, and that may lead into a deep crash and it's uncertain if Bitcoin can recover.

But if "real" use cases like saving, remittances and payments begin to dominate and speculation is no longer the primary driver for demand then this might change:

Once it is proven that Bitcoin has real utility, then saturation will not be scary anymore. In such a "saturated" market with real use, the most likely outcome is a stable price measured in purchasing power, and a slightly increasing price measured in inflationary fiat currencies like the USD.

[MusaMohamed]

This may be a real concern if the price drop is very steep and long. But normally the difficulty mechanism generates a smooth adaptation: if too many miners drop off, some of this "no longer profitable" group may be able to join mining again when the difficulty has dropped in the next period.

Some miners may even use these low difficulty periods to step in again after a period of abstinence if they have the capacity to hodl the funds for some years (if they expect a future price rise).

Bitcoin miners are like investors, and they have very different financial positions so that if among investors there are strong hand investors and weak hand ones, it's similar with Bitcoin miners with good or bad financial and risk managements so that they will either stay or leave the Bitcoin mining industry when Bitcoin market has decreasing movements.

The Hash Ribbon Indicator chart shows Bitcoin miner capitulation in history.
https://www.bitcoinmagazinepro.com/charts/hash-ribbons/

Weaker miners are like weak investors, they can exit the mining industry and the market for a while but they will return.

[tread93]

Not only long term investors is afraid of dump of BTC price OP, even newbies too are afraid of BTC dump, because they understand that bear market is not a good mood market for hodlers to start selling their BTC than to encourage themselves not to sell at the moment. We know that long term investors earn massive profits from the market than short term investors, but if you don't have other sources of income it will be hard for you to enjoy long term hodling, because even though you want to hodl for long years the current price will make you change your mind to sell to earn small profit, but if you have other sources of income it will be hard for anything to discourage you to sell your BTC in a short period of time.

If you are financially buoyant you can involve long term hodling, because that is the simple strategy majority of BTC investors are using to grow financially, because they will not allow any financial challenge to make them to change their minds not to hodl for long years.

The hodling is the key. So many folks buy for 3 or 6 months or a year and bail. Bitcoin isnt your bail solution.  Bitcoin is your Pokémon collection from childhood that you dont want to get rid of but fall for a cheap money liquidity event if you were offered and usually sell well below the value you should at

[jcojci]

Long term investors usually have much experienced how they anticipate the changing of the market. They will not worry, they have seen that many times happens and recognize the pattern. They can act based on the situation and thinks step ahead than others and not just speculating.

They know they have to split their wealth to many things to cover them if something bad happens. They have an emergency funds separate and their daily operational money so they will not have to worry. The investors need to learn before we enter to something so we know how to handle.

[Publictalk792]

Distinction between retail trader and true believer is way in which downward moves are regarded, one loss and other premium asset on discount.
I think it is mining costs that market is really at balance. When prices fall below cost of mining, it makes weak hands and inefficient miners go away, which is good for entire network and increases its decentralization in long term. Only way to overcome this is to think of bitcoin as means of financial freedom, not get rich scheme. With fiat in your emergency fund, you will never be forced to sell your satoshis at low point due to life necessities. In this game, Discipline Always Overcomes Emotion.

[Zigabel]

To be strong when this happens:
Have an emergency funds separate
Buy and keep predefined dips aside
Be on two sides etc.

In conclusion
As a mature Bitcoin investor your mideset towards losses is ought to be mature don't assume have it at the back of your mind that , it's volatile before entering, be disciplined, and control your emotions so it won't affect your mindset and decision.

This why it is always said and discussed here that you should always have another source of income or a job and not to totally or completely deepened on your Bitcoin investment. there are too many uncertainties we get to see with the market and if you are totally dependent on the Investment you made on Bitcoin, chances are that you are likely going to be emotional and take rash decisions that may affect your finance and investment leaving you at little to no profits or losses.

As an Investor learn to always think in probabilities and not to think that you have always got it accurately or the market is under your control and it must often always happen the way you want it to happen and in your direction. Discipline that helps you keeps your emotions in check is always needed and this isn't only when you are loosing, even when you are in profits, so you will know when to stop and when to continue staying to accumulate more profits.

Never stop studying or learning, never assume that as an experience Investor that you are you already have it all. and knows its all, the market is very dynamic and you will only get better with your investment if you keep to continually learn and follow up with improving for a better way to invest and do better than you have been doing before. Always keep an open mind to newer ways to approach the market and become a better investor, don't forget that LOSSES IS ALSO PART OF TRADING AND INVESTING.

[5W-KILO]

Saturated my foot, when people think that Bitcoin adoption is already lagging or freezed at one point is when a news of another big company will come out that they are massively buying Bitcoin, you are a big fool if you believe that adoption rate of Bitcoin isn't increasing.

Someone told me that public is the most easiest thing to control, and it's happening with crypto space, just bring a bad news that some iconic people are selling their Bitcoin in a bear market many people will start to panic.

It's part of the game to lead people astray, force them to give up what they have been accumulating for the past years up, If you are not confused that Bitcoin is here to stay don't bother buying and holding bitcoin.

[Livingleged]

Has there been anytime where a long time investors experience over dropped in price/ value of bitcoin beyond their buy price? I doubt, real investors know this and thats the reason you can see the increase in adoption and I don’t even know where all this narratives are coming from. I'm just speaking from experience and not for those that adopted bitcoin around 2011-2020 i’m speaking from beyond that date, I doubt if there is anything like that.

About bitcoin being saturated is Also not justified, I don’t think we’ve gotten to that point i don't even think there will be a time that people will No longer be interested in buying bitcoin. It’s a cycle that repeats it self and if something keeps repeating same cycle saturation cant even come in because there will be different generations to keep the process going.

[RockBell]

Have an emergency funds separate

I have emergency funds in bitcoin, stable coins pegged to United States dollar and in local currency. The local currency is the worst because it has reduced almost 5 times in purchasing power within 3 years. It is followed by the USDT and USDC that I have. The best has been bitcoin, but I do not just buy bitcoin blindly. I started buying bitcoin when its price has just fallen after a long period of all time high has been the time I buy bitcoin. Bitcoin is very different if you can follow a good buying plan.

Do you have to wait for a certain period of time before you buy like you said you had to wait for the price of bitcoin to drop after it stayed up for a long period of time before buying and I'm curious to know how efficient and effective these your technique works for you ?
In other words you only buy during the dip and maybe have to wait after four years before buying right? Because the time you will get bitcoin hitting a new ATH before maybe thinking of a dip and since you only buy after the coin after it have stayed at an ATH for long before  it starts to dips

There should not b specific time for anyone to be buying bitcoin, whichever time it might be, you can buy because when you do DCA, then there won't be any form of timing, and that is why we usually say that times have changed, where you will have to wait for the price to dip before you buy you just need to put all the necessary thing together which i call the mode of operation and when you accumulate for a long period of time then you will be able to get a good return when it eventually hits a ATH and dedication to buying is what should even matter most at this point because people are still trying to figure out which will be better for them when it comes to investing.

[Pablo-wood]

Now I will like to analyze so specific reasons why Long-term investors fears over drop in Bitcoin Price.
Formally Long term investors do expect volatility, expecially when it's drops. Sometimes it's makes them feel's nervous and pained expecially when it's affects their personalities for those investors that trades on Bitcoin, it affects their net worth on paper, makes people sells their Bitcoin unplanned.

Long-term investors already understand the risk and have learnt how to deal with their emotions before risking their funds. Someone who holds for long fears nothing even if the market chooses to return to zero. They must have done their research to understand how price movement works and how it applies across different cycles, halvings and long-term durations. I don't think they feel nervous, those who should feel nervous are those desperate to take short profits with a specific time usually short-termed because they can't afford to deal with price volatility for so long a time.

[Agathamay]

Have an emergency funds separate

I have emergency funds in bitcoin, stable coins pegged to United States dollar and in local currency. The local currency is the worst because it has reduced almost 5 times in purchasing power within 3 years. It is followed by the USDT and USDC that I have. The best has been bitcoin, but I do not just buy bitcoin blindly. I started buying bitcoin when its price has just fallen after a long period of all time high has been the time I buy bitcoin. Bitcoin is very different if you can follow a good buying plan.

Do you have to wait for a certain period of time before you buy like you said you had to wait for the price of bitcoin to drop after it stayed up for a long period of time before buying and I'm curious to know how efficient and effective these your technique works for you ?
In other words you only buy during the dip and maybe have to wait after four years before buying right? Because the time you will get bitcoin hitting a new ATH before maybe thinking of a dip and since you only buy after the coin after it have stayed at an ATH for long before  it starts to dips

There should not b specific time for anyone to be buying bitcoin, whichever time it might be, you can buy because when you do DCA, then there won't be any form of timing, and that is why we usually say that times have changed, where you will have to wait for the price to dip before you buy you just need to put all the necessary thing together which i call the mode of operation and when you accumulate for a long period of time then you will be able to get a good return when it eventually hits a ATH and dedication to buying is what should even matter most at this point because people are still trying to figure out which will be better for them when it comes to investing.

I get your point and I wouldn't want to talk down on the buying strategies of others provided it works for them and possibly keeps them in profit but what I needed some clarifications on, was on how effective the strategy of having to wait for bitcoin to hit a new ATH and letting it dip again before buying which is a practical definition of saying we should buy the dip which might at the long run be a very boring adventure of I'm not wrong.