How to create wealth in a bear market
原文标题：《 熊市令人兴奋的 5 个理由，如何在熊市抓住财富密码？》
By David Hoffman, Bankless
原文编译： 东寻，巴比特
Many of my friends got into crypto in 2021 and they all just wanted the price to go up... Of course, who doesn't want their portfolio to grow in value?
So when I tell them, "I want a bear market," they are always shocked.
If you want to get really rich, you need to hope for a bear market. It's totally counterintuitive, but it's true.
If you want to make a quick buck, then sure, you can bet on those Memecoins. But if you're looking to create generational wealth, you don't expect to cash out in 2022 or 2023. You will accumulate wealth for the future.
Let me repeat, generational wealth is created in bear markets.
Nor is it just a matter of financial capital. Wealth is not just capital. If you do well in a bear market, you will not only gain a stronger portfolio, but more, such as long-term friendships, meaning and purpose.
So let's put it all into perspective.
In my opinion, there is no formal definition of a bear market. Of course, those looking for a clear definition might end up with"... a 20 per cent or more drop in prices from recent highs..."As a benchmark. But to me, a bear market is a reflection of investor sentiment.
In other words, rather than trying to categorize the recent price action as a bear market, ask yourself, does this feel like one? If so, act accordingly. If not, take appropriate measures.
Here are five reasons the bear market is exciting:
Long-term wealth
One reason I hate bull markets is that buying crypto always feels fruitless compared to the bear market I was used to in 2018-20.
$1000 for 2018 is 5-10 ETH or 0.2-0.3 BTC. $1000 in 2021 is 0.2 ETH or 0.015 BTC.
Changing the size of a portfolio is difficult. In a bear market, it is much easier to add to your portfolio. Be able to cost your 9-to-5 wage in dollarsOn average,It is satisfying enough to invest in what you believe is a larger asset allocation.
This is the true source of long-term wealth: faith.
Bear markets are a time when settlers leave their homes in search of better pastures. In a bull market, you buy the same things as tourists and fans. In a bear market, those bidders disappear and you can get a better purchase price option.
Most people who have spent enough time in crypto understand that it's going to take over the world. Time is on our side, and the longer we endure the bear market, the longer we have favorable long-term prices to absorb before the world decides to look at cryptocurrencies again.
Bull markets are when the entire world remembers the existence of cryptocurrencies and reprices the sector based on the progress it made in previous bear markets. Bear markets are when the rest of the world gets tired of cryptocurrencies and the market moves on. If you stay here and everyone else leaves, that's your chance.
You can buy at prices you'll never see again. Those who created huge fortunes during the ICO boom of 2017 did not. They bought it regularly between 2018 and 2020, when ETH cost less than $500.
Every crypto bear market so far has been a huge opportunity, and if you're ready to invest for the long term, bear markets are how you make choices that pay off.
02 Long-term Relationship
Financial capital is justcapitaltheA kind ofForm.
Social capital was one of the best assets I unknowingly accumulated throughout the 2018-20 bear market.
Friends, brothers, Allies and partners.
Bear markets are when the bonfire cools and we all have to curl up for warmth. We stood shoulder to shoulder, finding our bear partners to weather the winter together.
If you're like me and can't stop thinking or talking about cryptocurrencies, you'll find like-minded people here with similar levels of belief and similar industry-specific interests.
I made lifelong friends during the bear market of 2018-20. I've been to weddings and traveled the world, spending real life time with people I've met on Discord or Twitter.
How to take advantage of this:
Learn how to use Twitter (it's a skill) and keep spending time on your Discord channel. Get the second monitor to keep Discord always started (alpha: make it vertical). When you find someone you identify with regularly, send that stranger an email and say hello.
That's how Ryan and I met, and that's how Bankless started.
We still haven't met. ¯ \ _ (ツ) _ / ¯
03 signal & gt; Noise (Alpha)
Bear markets are considered "tough times". In terms of financial capital, of course. But for everything else, bear markets are a simple model for cryptocurrencies.
I mean, in a bear market, the ratio of signals to noise is much higher.
In a bull market, everything is clamoring for your attention, which can trigger your FOMO. In a bull market, many projects are achieved by attracting attention rather than fundamentals. In a bear market, these programs no longer work, and attention-based programs are the first to go.
Bear markets are quiet markets, and when the noise leaves the sector, it creates room for real signals to dominate the sector.
Bull market = Noise dominates
Bear market = signals dominate
It's part of the market cycle that simply reeks of alpha, and the best part of it is that it doesn't confuse you. It's just easier to identify real alpha and more confident in that judgment.
For example, DeFi was created in 2018/19, but it doesn't have a fair price until DeFi Summer 2020. Everyone knew that DeFi's alpha would eventually come, with plenty of time to accumulate in the meantime.
04 construction
It's easier to build during a bear market.
The silence of a bear market enables concentration and long-term thinking. Entrepreneurs in bear markets don't have to follow weekly trends; they can lay the foundation for years or even decades to come. The absence of animal coins and the new NFT PFP means builders can refocus on fundamentals and the real thing.
This is of course cyclical. Once these bear builders produce their high-value products, there will be a new wave of bull fever and an end to the silence as the world gets excited about all the cool new things that bear markets produce.
It's much easier for founders to find quality talent in a bear market. You don't have to worry about whether they're here for the long term or for the trend. Talent tends to be hungrier and more tenacious than during bull markets.
By definition, a product born in a bear market can resist one. If it can build in a bear market, it will thrive in a bull market.
05 Encryption will become more powerful
Cryptocurrencies are "anti-fragile". "What doesn't kill us makes us stronger" and there is no way to kill a cryptocurrency at this point in its life cycle. We have won. We just have to wait for the rest of the world to realize it.
No, cryptocurrencies are not dead. The only thing dead is the faith of a bunch of tourists. The 2020-21 era has brought millions of new cryptocurrency users, and the 22-year bear market will demand a very strong portion of them as long-term settlers.
Because the last two years have seen more cryptocurrency believers than ever before. We have more developers than ever before, our own local media organization, and our own culture and slang (GM, Wagmi, Frens).
We have our own vibe, and our collective vibe will ensure that the bonfire of the bear market keeps everyone who chooses to stay warm through the winter.
I can't wait to see what the other side of this process looks like for our industry!
So what do you want to do during a bear market? What kind of friends would you make? What will you help build? What skills will you develop? Why did you stay?
I look forward to working with you to build the entire bear market (if that is what it is).
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