Don’t stay on a sinking ship: Just because you’ve sunk costs into a project doesn’t mean you have to go down with the ship. With these strategies, you can let go of the past and make decisions based on what’s best for you and your team. The sunk cost fallacy makes you your own worst enemy—but with some self awareness, you can be the key to your team’s success instead.
I suppose far too many people do not know when to cut their losses to at least end up with something (no matter how small) as it will always be better than having nothing...
From my personal experience, I have seen bitcoin falling so hard that it makes us believe it is going down to zero but then the reversal comes in.
So bitcoin has some people so adamant that they hold on to their "sinking ship" believing that the reversal will come soon and their ship will be back on track.
But the hard truth is that it doesn't happen with altcoins. Bitcoin is truly an exception...
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If you look closely, the fallacy is based on maintaining the investment
only because you have already lost money (time). In the case of Bitcoin it is not only that. If it goes down 80%, we know that many times it has done so and recovered, that it has a high volatility, that it is the only asset with a total limit to its production, and a reduction of supply every 4 years, etc.
Back in 2021 I referred to investments in FUN as being a sunk cost. The token had gone down 90% in value, yet some people still had the illusion that the price could go back up and thought that buying it at a cheap price was a good idea.
https://ninjastic.space/post/58686997The token was always managed terribly and none of the reasons for why it would pump came to be. Instead it went down further and people lost more money than they would have if they had just gotten out early. I also failed to get out early because I locked them for too long and was unable to sell them at a good time. The only common sense thing to do at this point is to abandon the sinking ship if you have not done so already.
I too invested early on in the tokens, which have been the only tokens I have bought but I got out early, losing little. If we look at the graph, the tokens had a spike when they were created, started their trend at 0, like all of them, and had a second spike when FBI announced it was adopting them for its site. After a while the trend to 0 started again.
The case of these tokens is completely different from buying Bitcoin.