Of Pumps, Dumps, and Chumps
I dont usually write about money. I would say it is even more rare that I write much about crypto. I have before, once or twice, but not often. However after such a run in Hive, I feel compelled to make a point or two.
Pump
First. That was sweet! What a fast "ramp" as we say in stocks or "pump" as they say in crypto. Is it just me or does "pump" have some inherently negative connotations associated with the word?? A ramp is just merely an advancement in price over a short time. A "pump" seems to insinuate nefarious activity, at least to my mind.
Dump
Secondly, from my limited experience with Steem, then later with Hive, is that most all pumps seem to end with dumps. Many times equities will ramp up and stay at the new elevated level. Yet with crypto, that doesnt seem to be the case. It goes up fast, it goes down fast. Always. Every single time! Pump following dump is like 2 following 1. Not talking about Bitcoin, just mainly Steem and Hive. Which brings me to my final point...
Chump
Lets be honest for a moment shall we? No one likes feeling like a chump. You know feeling like a stooge, an idiot, a chump is just not fun. So since the Hive chain started we have had what three of these pump and dump deals? I really have not been able to sell anything at the highs because I generally have all my Hive powered up. However in light of these quick pump and dumps, I feel quite like the chump having no liquid Hive available to take advantage of the higher prices. I think the simple answer is to start a revolving power down. Just because one powers down does not mean they are going to sell. One can power it right back up if one decides to. During the last pump and dump, people were able to sell high and not much later buy double the amount they sold back at the lower prices. To me, this is a no brainer. So I think I will start a power down but wanted to explain I am not rage quitting, just trying to play the game in a more prudent manner.
I was stoked to see Hive holding around a buck. Anyways this old world keeps a spinning and I guess that means we are all getting a bit older. Like old Gramps used to say, "Son you best start putting first things first". I know, Gramps, I know. Ill see ya soon.
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I can relate, and I agree.
The vast majority of my Hive is powered up, and I don't personally want to power down, even to take advantage of an arbitrage opportunity.
But I completely understand, and agree with, your strategy in doing so. And I wish you the best of luck with it.
I respect your choice immensely. To me it is rather taboo to even consider powering down for anything short of a dire need! Knowing my lack of patience, I will most likely power it back up but will feel better for venting about it lol.
I thought about the same thing (but in different words) the last time Hive went up. I have never taken anything out, but if I should ever want too, it makes since not to power everything up. I didn't power up for the longest time and then 4 days before the last spike, I decided to just do power it all up and I did. ha ha... jokes on me. So now I will think again about not powering up for a while.
I don't necessarily need any of the money in my life right now, but you know how other things have happened and just "POOF" everything was gone, so it just seems to me like I should take something out at least once ! It's all a gamble... right?
I at least understand. It will make me think if I would do the same.
I should clarify and say this is not really to take out, but to sell and then buy back (even more) cheaper. IOW if I sell 100 Hive @ $1.00 then I can buy back 200 Hive @ 50 cents.
I remember back on Steemit when I first started, I was not 100% convinced that the money was all real. I saw a post by Papa Pepper where he filled up his gas tank with cash he took out from the site! I was hooked ever since!
Well... whether it's to keep or re-buy, it has to be accessible when the time comes to use, so either way some has to be left up top.
I guess that is the way everyone seems to play. Doesn't sound healthy for the platform, but, it makes perfect sense on a personal level.
I have been able to take advantage of the pump and dumps now and then. It seems to have great benefits, and I usually power up only once a month or try to anyway. No matter how much I try to time it, it hardly ever works like I thought it might.
I think everyone has to do what is right for them.
I felt compelled to say it publicly as I have brought a few folks over to the platform and I do not want to give the impression that I am doing it to quit... quite the opposite.
Well, darn! :))
Of course, you can't go! Not after leading everyone here.
I don't power up but usually once a month so that I can take advantage of the dips. I would rather have the bigger upvote and help people grow.
I always hold 20% - 25% of my Hive liquid. And yes, I know most people want me to power up all of it but I will not do that as long as we have a 13 weeks power-down period.
Yes - it's a POS system but come on ... 13 weeks?!?
Indeed. Way back I believe it was much much longer! Like a year or two.
I think 4 weeks would be a place to start talking about compromise between 13 weeks and instant.
I took some out to buy a car…. It’s good to take some gains.