You haven't actually lost anything until you hit that sell button. It's wild how many people, particularly newcomers, treat a 30% dip like it's the apocalypse.
Looking beyond crypto for a second – traditional markets go through downturns roughly every decade. Way too many jumped into bitcoin expecting it to be some magical asset that defies gravity forever, instead of understanding it's volatile like any other investment.
If you're celebrating when BTC hits $130k or $150k, then you better have the stomach for when it drops back to $60k or even $40k. That's just how this works.
Unrealized losses aren't real losses
byu/TumbleweedSad7674 inBitcoin
Posted by TumbleweedSad7674
6 Comments
Volatility is life source!
Dangerous oversimplification.
An unrealized loss is an immediate reduction of your net worth and borrowing power.
Tying up your capital creates opportunity cost. Keeping a losing investment in the hopes of a recovery – disposition effect, usually leads to larger, realized losses later.
>You haven’t actually lost anything
You lost purchasing power. It’s a real loss.
Don’t kid yourself. Unrealized losses ARE losses. They might be temporary, or they might last indefinitely. Ask anyone who held onto an altcoin or a failing stock while it fell 60%, 90%, 99% and never came back. Does keeping a loss in the “unrealized” column forever prevent it from being a loss? It doesn’t.
I’ve found the healthier way to look at Bitcoin is that the loss *of dollars* occurs the moment I trade dollars for bitcoins. **I want Bitcoin, so I’m willing to part with dollars.** For example, at some point in the past I traded $1000 for 0.01 Bitcoin. I gave up those dollars when I made the trade. The price of Bitcoin has fallen since then, but **I can’t lose any more dollars than I did when I made the exchange**, so why should I worry?
Broke retail are driven by emotions because they are broke. It’s a catch 22
I wish I could think like this lmao