If you look closely, the fallacy is based on maintaining the investment only because you have already lost money (or 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.
With the limitation and volatility associated with it, investors are not shying away from Bitcoin. There could be many reasons for this but ultimately if investors are certain the price will rise they will always have an option to either sell or dump with a profit attached to their transaction. I suppose how long the trend will continue depends on how long the volatility lasts and that cannot be answered.
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.
Regarding tokens (whether FUN or
mostly any other), the idea investors believe they will maintain momentum or importance over a long period of time does not apply. If investment in any token makes sense it has to be a matter of buying but only with the intention of selling as soon as possible. Eventually they will lose virtually any monetary value the once had and we have seen that pattern too many times. There are obvious exceptions to the rule but overwhelmingly the pattern of decline is constant.
Beyond investing in Bitcoin, I cannot recall the last time I did or wanted to invest in anything else, it was several years ago but unless something exceptional comes along that deserves investment I will not take any risks investing in it.