A rising Tide Raises ALL ships and All Wreckage
Hey Jessinvestors
I tend to think I'm rather naive when it comes to the world of investing and money oh and people, the only thing harder to understand than financial markets has to be people. If you think stocks or crypto is a volatility trade, people are the most volatile trade of all.
I tend to dip my pinky in and listen to what people are saying on the ground so I can get a feel for consumer behaviour. Learning how a lot of people think, especially in a sheep were driven society means you can place bets on certain conformist behaviour.
I try to be a contrarian as much as I can without trying to bullshit myself, and it's hard because we can never realise what we don't know and the vastness of what we don't know. We all live on sample data and think that's how the world works.
Money has no morality
Bitcoin is by no means perfect money, and it surely doesn't attract perfect people. There are quite a few who have been gassed by the price to think they are financial geniuses and walk around with a chip on their shoulder and carrot up their arse.
In a world where we base value on numbers and not impact the price of something regardless if its priced on merit or not gives people a sense of bravado. They have been vindicated; they won, they were right, regardless of the time frame; at this moment, I made the right choice. Therefore, I am superior.
The same thing will happen with altcoins once their run starts and so for a small set of time, many will feel like their choices were right even when they are wrong. We can see that from the previous bull run, and the 40-year bull run of the stock market that has seen everyone and their stimulus cheque jump into investing.
The Dunning-Kruger investor
The Dunning-Kruger effect is a powerful market force; when retail comes in, be it into passive funds or active trading, and the market runs in their direction, they feel no need to research. They feel they already know it all and don't know what they don't know.
They may even outperform professional investors in the time being, but one moonshot or good call doesn't make you a great investor. As the tide rises, it lifts ships and wreckage alike, and many cannot tell the difference.
The fact is many people are betting on the wreckage and don't even know it yet, because the tide continues to rise. I am starting to see a lot of shilling, and people are falling for stories in crypto rather than thinking for themselves, and it's going to see them get hurt.
I feel it too I also fall for a good story, but then I try to take a step back and combine that with additional research, it's tough and I get why people don't do it, but as with every investment, all that glitters is not gold.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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