The compounding effect of FOMO

Unless you live under a rock you will be aware that cryptos are making a mini ressurgence... Bitcoin hovering over 10k and Steem now over 25 cents 😁. While this is exciting, I expect it to go on for sometime now as the ball has started rolling.

Generally the advice in any investments is to buy low and sell high. MOST PEOPLE DONT DO THIS. So as prices drop more and more people freak and sell and it becomes a snowball before prices reach their equilibrium (fancy economic lingo for price low when demand equals supply). This has been happening for over a year now, and it seems to me that in this cycle Steem may have hit the low of around 11 cents.

So now people start buying and with this the price starts to rise. As the price starts to rise more people notice and dont want to miss this amazing oppurtunity. And the cycle goes on. Sadly this often overinflates the price and then it comes crashing down to earth again (as happened in late 2017).

If we think about where Steem is today compared to a month ago there hasnt been drastic improvements, but the price has more than doubled. CRAZY? Yes and no. The development has been going on here for the last 1 or 2 years constantly. However, the market was asleep! Now the market is waking up people are getting FOMOd into crypto (again) and the prices will reflect that.

People who are smart will have already invested/blogged heavily on Steem and will be happy for the times ahead, while others might think they have missed the boat and start buying in at higher prices.

Glad I kept active while people said crypto was dead!!!