The utility function for money for humans is not uniform.
Also, people hate to lose money. i.e. the difference between losing 1 dollar and breaking even is not large in fact, but is really large in mind. Even people who recognize this is irrational still suffer if feel they have lost money - so, removing this suffering is valuable to them.
If you only have 10 btc, selling one to break even lifetime will permanently mean you did not lose money. If btc go to a million each, an extra million will not make much difference, since utility of money at the top is much less than at the bottom.
Therefore I think it makes perfect sense for humans who bought btc cheaply to sell fractions of their total holdings to remove the possibility of losing money on btc overall.
Comments
The utility function for money for humans is not uniform.
Also, people hate to lose money. i.e. the difference between losing 1 dollar and breaking even is not large in fact, but is really large in mind. Even people who recognize this is irrational still suffer if feel they have lost money - so, removing this suffering is valuable to them.
If you only have 10 btc, selling one to break even lifetime will permanently mean you did not lose money. If btc go to a million each, an extra million will not make much difference, since utility of money at the top is much less than at the bottom.
Therefore I think it makes perfect sense for humans who bought btc cheaply to sell fractions of their total holdings to remove the possibility of losing money on btc overall.
If you want to get meta, then people should not invest at all-- no risk of loss. But people also enjoy then thrill of gambling, son let it ride.