The reason why some people panic is not because they don't know the volatility nature of Bitcoin but rather the reason why most people panic is because of wrong investment approach, especially those who are Investing for short term, once they invest more than they are suppose to invest because of the feeling and hope that the price will go up and unfortunately the price start dipping they will surely panic because they have made a very big mistake and that is the reason why we should not invest for short term and should not also invest with what we can not afford to let go because it will make one to be monitoring the market which is a stress and waste of time.
You are right about what you said here, just you have said already,
the two things that makes a bitcoin investor panic anytime their is a dip in the market first is either that person is a newbie that knows nothing about bitcoin and it volatile nature or that person is investing what he cannot afford to lose, but if a newbie investor has knowledge about bitcoin and it volatile nature, and he is investing an amount he can afford to lose, he will definitely not panic anytime their is a dip in the market.
It shouldn't have been an investor in the first place, because you are talking about a trader. How can you say the two things that can make an "
investor panic".do investors panic? That statement alone has has completely ruined the explanation. because investors don't panic. This surely mean you are referring to a trader in replacement of an investor.
There is no such thing as panic or fear in long-term investment because if the investment is managed keeping in mind the time frame of 10 years or more. The supply of Bitcoin is 21 million which can never be increased and with time the process of mining new coins is getting more difficult so the supply of Bitcoin will gradually decrease and the demand will increase many times. This means that the price of Bitcoin will increase with time. So it is very clear that if the price of Bitcoin increases or decreases at present, there is no possibility of panic in the case of long-term investment.
But in business it is different. In business, if the price of a product increases or decreases, the possibility of panic increases many times. If the price of a product increases, the possibility of losing customers increases many times. Because as the price increases, the demand of the buyer may decrease. If the price of my product decreases, the buyer may feel that the quality of the product has become worse than before, which creates a kind of chaos in the market, which can reduce the demand of the buyer. Therefore, the amount of panic increases many times in business, not long-term investment.