The crypto flywheel effect.

avatar of @niallon11
2 min read

The more that the token goes up, the more that people want to buy your token.

The more that your token pumps. The more people that are willing to buy it.

Even long term crypto users panic sell when prices are dropping. Sell at a loss when the markets are down. Panic when we are in a bear market and leave it all behind them.

I've heard that crypto is dead a lot of times over the past six years since i've been part of this space.

I could have sold my bags at any stage over the past two year and given up like so many others. But why would you sell low if you know anything about this space or the tokens that you hold.

Is it lack of understanding? Lack of interest? Lack of belief? Or just a lack of balls....

It's easy to give up when everybody is against you. Easy to stay out when the narrative is negative. People are easily swayed by the news and when the markets are down it's nothing but negative news.

Bitcoin is crashing. The government is going to ban crypto. Crypto is a scam. This person lost money in crypto. Nft's are just pictures....

The negative news cycle.

Or in reverse.

The bull market.

When bitcoin recovers it's previous prices fast and looks like it's going to blow them out of the water. People start hearing all of the success stories where John bought a token for 1c and it's $20 now. He made a fortune.

Bitcoin is in the news as it grows 20% per day and it feels like you can't lose. Suddenly it seems like a good buy at $40K when you spent two years avoiding it at $20K.

Your brainwashed.

tokens that you wouldn't touch last year suddenly go 200% and you jump in to make some gains.

No knowledge. No research. No problem.

If the candle is green, everyone is keen.

The token gets some mainstream attention and suddenly it's on everyones radar. The early adopters have made their money. The early adopters are shilling it like crazy and the bag holders are arriving with their money held out.

That's how the flywheel works. All you have to do is get a bit of momentum at the right time and the people will do the rest.

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