People are “irrationally pessimistic” in bear markets, says Brian Armstrong

Brian Armstrong, the CEO, and co-founder of Coinbase, recently spoke about the price of Bitcoin [BTC] and the market in general. He also spoke about the patterns observed in the market over the 2013, 2014, and 2017 bubbles.

Infographic posted by Brian Armstrong | Source: Twitter

Infographic posted by Brian Armstrong | Source: Twitter

He shared this information on Twitter earlier today, with a 10-part thread. Over the course of the thread, he explored his views on the industry and the cycles in which it occurs. He began by saying that the crypto-industry is “like no other I’ve seen – lots of up and down cycles [reaching a new plateau each time].” He stated that it can be scary for first-timers, but is a norm for those who have spent time in the industry.

Notably, the CEO of Binance, CZ, holds the same kind of opinion, pointing out patterns to past markets of 2012 and forward. With an accompanying infographic, Armstrong showed the similarities with previous markets, saying:

“When there is hype, people are irrationally exuberant. When there is despair, people are irrationally pessimistic.”

He went on to say that neither of these is true and that the reality of the situation was always somewhere in the middle. This “reality” is more correlated with real usage and statistics, such as transactions per day, rather than the price.

Armstrong demonstrated the school of thought that many HODLers do, saying that down cycles in the market allow for getting “rid of the people who are in it for the wrong reasons”. He said that this was an opportunity to keep making progress while everyone else is distracted.

Interestingly, Armstrong said that down cycles are used to build a strong foundation to “thrive in the next growth cycle”. This correlates with the current market trend, where the bear market saw a period of technological, regulatory, and partnership-related movement forward for many top cryptos. This progress will then fuel and support the next bull market. He said:

“I want to encourage you all to ignore the price of crypto and the headlines which will inevitably start to come up. Our job is to rise above that, finding our own intrinsic source of motivation, to come in and do our best work, regardless of what other people think.”

He finished by saying that “we will win in the long term”, with the final goal being shifting the world towards an open financial system.

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