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Many people may not have experienced the late 2017 or 2013 crypto manias that were the talk of the town. Today, I want to describe what peak crypto market euphoria looks and feels like. Come the next market bubble, you may have an gained an edge.
Do not get caught up in the euphoria – you will regret it.
Real World Bitcoin Eavesdrop
I remember swimming in the community pool and over hearing an elderly man saying “I bought Bitcoin!” – he and his friends continued to converse, although somewhat ignorantly. He must have been at least 70 years old. At the time, I thought, “Wow, Bitcoin is going to the moon!” and “I’m RICH!” – little did I know, it already had. At that point, it was late December 2017. This is what peak crypto market euphoria looks like.
Memes Are Meaningful
Memes showcase peak euphoria as you can see from the examples in this post. Every day Bitcoin broke a $1,000 barrier there was a new edgy meme that appeared. Without a doubt, it was about the price going up and of course everyone upvoted it. This is what peak crypto market euphoria looks like.
Friends, Family & New Sources
Suddenly, old friends I hadn’t spoken to in months, or years, had messaged me on Facebook asking me “What is Bitcoin?” “How do I buy it?”. My dad randomly sending me bullish CNBC articles like this. The endless news reels about how Bitcoin was headed to the moon. Co-workers swiftly took notice of the market mania and you’d over hear Bitcoin being discussed in the workplace. This is what peak crypto market euphoria looks like.
The Euphoria Itself
Every morning I woke up and immediately checked my Binance account value. An enormous rush of dopamine smacked me in the face as soon as I realized my crypto had put another $10,000 in my pocket, or so I thought. This was seemingly a daily experience. The feeling was out of this world. Never had I obtained so much money so easily. This is what peak crypto market euphoria feels like.
Greed Makes You Do Stupid Things
Around Dec. 2017, plenty of stories were circulating around about people selling their homes, taking out loans, buying Bitcoin with credit cards, people living in vans to gain more Bitcoin – you name it!
When you see people fall into this booby trap of greed, over leveraging themselves, you are probably nearing the top. This is what peak crypto market euphoria looks like.
The Comedown & Denial
This is the rough part. If you’re experiencing this sense of blissful denial, you are most likely entering the bear market. If you’re smart, at least pull out your initial investment.
Everything after that is pure profit, which will drastically alter how you perceive the impending market. Psychology & loss aversion is an important factor to take into account. If your initial $20,000 suddenly becomes $10,000 you will devastated. If your pure profit position of $10,000 becomes $5,000, so what – it’s still profit.
As someone who has experienced the Bitcoin 2013 mania as well as 2017 – I cannot put enough emphasize on the quote below.
“Those who cannot remember the past are condemned to repeat it”
– George Santayana (1905) Reason in Common Sense, p. 284, volume 1 of The Life of Reason