Why is the Market Crash Good

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The recent crypto market is going through yet another recession, crypto winter, nose diving etc I mean you name it. But anyone who had even a little bit of idea of risk management may have known that it would happen sooner or later. Bear market comes after bulls and vice versa.

But the question is, was everyone prepare for it? I guess No. There was not a proper risk management on the part of too many users or big organizations out there. There always be the risks and accepting them means to get ready for it while it becomes a reality.

It would be wrong to think of staying in the bull market forever as long as new users come along. These sort of things have no place in the market probably.

These sort of downtrends may have a very little effect on those people who build and run their businesses taking in consideration things like complete account profits, risk assessment and costs.

Why is the Market Crash Good

Well, it would look stupid to say that the market crash is good while people lose their money. But if we look at the impact of it, is what could be good for the ecosystem.

Many users join the space just to collect quick bucks from speculating or pumping. These market crash makes these people sober.

If you start working with crypto, you have to prepare yourself for the downtrends and the risks involved with it just as mentally preparing yourself for a possible leg break while driving a bike.

What these downtrends do is that they drive away those useless profiteers away. Only those project may survive which has a promising system and want to stay here for a longer term rather than just looking to collect some quick bucks, pack their bags and leave.

Posted Using LeoFinance Beta



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7 comments
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You're right it's healthy, if the market was a sure thing - it would simply trend to nothing. The other element of crypto losing value against fiat currency is that the perceived value of tokens can go up. Buying Hive to Power Up at the beginning of April would have netted you almost exactly half as much HIVE than buying it yesterday before the pump.

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I wrote about this a few days ago too, it shakes out the risky and dodgy schemes. And the market gets healthier by it… It takes a while before it sifts through, but it is indeed a good thing

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The current bearish trend in cryptos will mean that only really serious people, who are capable of contributing positive things to the ecosystem, remain in the market, so when the trend reverses; they will be the ones who will obtain juicy profits for having known how to see things in its fair proportion and for having believed in opportunities and having acted appropriately under the circumstances.

On the other hand, the opportunists and speculators who have exited the market believing that nothing will ever recover, will have missed the greatest opportunity for enrichment of their lives, and they will regret it, because by the time they realize it, it will be too late.

I liked reading your article, it made me think about many things. Greetings.

Posted Using LeoFinance Beta

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