Published
5 years ago on
July 26, 2018
“To our thinking, this was the single most surprising response of the whole survey. Finance professionals make their livings by analyzing asset values through the lens of fundamental/quantifiable factors. That more than half of respondents believe valuation in the crypto space is ‘purely a function of crowd psychology’ is refreshing in its honesty.â€You can see the full article for yourself, here. Whilst 52% isn’t enough for this to be a psychologically significant finding it is important for investors to think about this sort of thing. When you see markets change, you need to ask yourself how much of an impact the community is having on this. Moreover, when one investor says sell, do you follow the crowd? If everyone does the same thing, how will this impact the markets? In all honesty, cryptocurrency is a psychological phenomenon, it is a product with a reward scheme that can manipulate people into displaying a specific behaviour. Moreover, it can form teams, communities and even societies. Cryptocurrency can form ideology and discourse and honestly, in itself it is a discourse. It’s complicated when you explore it, but we should always consider the psychology of crowds and investors when choosing to invest ourselves. Â
