Wednesday, April 03, 2013

Watching the Herd

Today, I sat mesmerized by stats on a small, Canadian Bitcoin exchange. It was absolutely fascinating. I sat for literal hours, pressing refresh watching players panic in a perceived fall in the market. One can eventually feel shifts and moves of individual investors by watching the page with open trades. Some participants must have been reacting to Internet rumours or the personal observation of other exchanges. What a ride!

It was a little scary seeing a few novices who apparently did not quite understand the finer points of trading. Some sold off their coins without looking at the market depth. I kept thinking this must be how it feels watching sheep march off to the slaughter. Then, I noticed others waiting to pounce once coins were sold at a price lower than was logical. They'd scoop up the remaining bargains.

opentrades

I could never actively play a financial market as I don't have the stomach for it. I am a "buy and hold" type of guy. I am absolutely adverse to risk. Any passion that reminds me of gambling is entirely and completely out of the question. I cannot see any logical reason why anyone would consider a visit to a casino enjoyable. I've got a big lead and hours of research in learning about Bitcoin. Those who dismiss it, lack key concepts about how money works. My new interest does allow me to see how larger financial markets might work though. There's a low cost associated with transactions here, unlike with the buying and selling of real stocks.

I can conclude by stating my Bitcoin wallet will never get much action through wild speculation.


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