Perhaps we should call group of investors instead of users, because practically no one really uses bitcoin, and there is no way of “using” it as a means of transfer even when the notorious crypto payment company Bitpay does not accept bitcoin any more for purchases under 100$ due to this much increased transfer fees (sounds a bit harsh and heart-breaking for all of us doesn’t it?). Well, the main use of bitcoin nowadays is we just buy altcoins by bitcoin as all exchanges list altcoins paired by bitcoin but even this is changing, it is slowly but steadily shifting towards ethereum.
Investors in Group 1 are the most hype-driven community. They wait for others to buy bitcoin and price surge before they are convinced. If you to these guys back in 2015 when a btc was 200$, you could never convince a single one into buying. With this thinking, they are doomed to never buy assets at minimum. These are not the kind of people who have time to study historical charts of the asset that they buy. If you spend time reading articles like this, probably you are not in this group either. Most of them are late in the game and they will figure out that they are wrong only when they face serious losses in 2018, only then they will start questioning themselves. Or rather than contemplating complex soup of ideas in blockchain industry, they will just say “what the heck yah, next time..” before they jump out. They are the most indecisive community driven by emotions and they are the largest in terms of numbers constituting the group who is most responsible for high bitcoin (and altcoins) volatility that we will continue to experience in the first half of 2018. In general, they invest in small amounts that they don’t care much. Although they constitute 80% of all bitcoin users, they have about 50% of the market cap all together. Although ignorance is sometimes bliss in the sense that group 1 users may even have made a tremendous ROI (Return On Investment) in the ride in 2017, they will not make any money in 2018 and essentially is the group of losers.
Investors in Group 2 may act smarter and get out earlier, try their luck with a little bit of day-trading, realize the risks better than group 1, at least to some extend, sometimes making some bucks, sometimes lose, surpass emotions to some extend, show some interest in altcoins in the hope that they may consistently behave different than bitcoin (although in the long run of 2018, while the bubble will be bursting throughout the year, they will not behave much different).
Investors in Group 3 are not reading this article just like group 1. Not because they pay no attention to stuff but because they are rich and out by now already. Or doing some margin trading, taking some additional risks as it is the only way of profiting from an asset in the case of a bear market. (A little bit more profit bitcoin is going down would not hurt right? There are risks of course). These people are the ones who had an idea about bitcoin such that it may have another bubble in 2016 or early 2017, and invested in it deliberately waiting for bubble to happen, expecting more number of people investing and price going up, and having a profit. They know how mechanics of investor psychology works. Still almost none of them has entered in the absolute minimum of 200$ and only a few cashed out in the absolute maximum of 20000$ but they nonetheless kept in at the right time and multiplied their investments, sometimes with altcoins as well (People mostly do not hit the peak while getting out except Charlie Lee, who got out in the game at the perfect peak, proving that he has developed handsome trading skills as well as coding).
legal disclaimer: not a financial advice blah blah..