TL;DR
Blind faith in volatile assets, coupled with the “HODL” mentality, creates fertile ground for scams and devastating losses. History shows speculative bubbles always burst.
Story
Imagine a digital gold rush, where everyone shouts “HODL!” (‣ HODL: Hold On for Dear Life—a misspelling turned mantra) while prices plummet. That’s the crypto market in a nutshell. The image shows a rollercoaster, symbolizing the wild ride investors face. Some boast about “diamond testicles” for holding through losses—bravado masking potential financial ruin.
How does this “HODL” mentality fuel scams? It creates a breeding ground for pump-and-dumps (‣ Pump-and-dump: Artificially inflating prices then selling high, leaving others with worthless assets), rug pulls (‣ Rug pull: Developers abandoning a project and taking investors’ money), and other schemes. Like the 2008 housing bubble, fueled by “prices can only go up,” crypto relies on new investors to prop up earlier ones—a classic hallmark of Ponzi schemes. This “diamond hands” mentality fosters collective delusion and ignores underlying risks.
John, a retiree, sunk his savings into a meme coin touted as the “next Bitcoin.” He held on as the price crashed 90%, believing the “community” would prevail. John lost everything. Countless others face similar fates, lured by promises of quick riches. They become emotionally attached to their investments, ignoring warning signs and doubling down on losses—a gambler’s fallacy in action.
History repeats itself. From Dutch tulips to the dot-com bust, speculative bubbles always burst. Learn from the past: Be wary of get-rich-quick schemes and “guaranteed” returns. Understand the technology and risks before investing. If you don’t understand it, don’t buy it. Don’t let FOMO (‣ FOMO: Fear Of Missing Out—the anxiety of not participating in something popular) override reason.
Advice
If you’re not selling and everybody is, ask yourself why! Be skeptical. Research before investing. Don’t get swept up in hype. Greed is a powerful drug.
Source
https://www.reddit.com/r/CryptoCurrency/comments/1j8vw0d/if_youre_not_selling/