4 things that nobody warns you when Bitcoin is concerned

In everyday circumstances, if we hear that, for example, Voren Buffett or Alan Grinspan advise that certain investments be "put off", at least we will act with caution.

However, we note that many invest some sums of money in the purchase of bitcoins with the latest crypto-sensing sensation. And many, for a reason now wonder, what the hell is all about? Do we even know what bitcoin is? How does it work? Quota 1.01 that at least 89% of our planet's population has no idea, but has "heard" and is not afraid to invest.

What is it in the bitcoin phenomenon, which surely marked the 2017 year, which attracts the wallets of an enormous number of people around the world?

1. Potential

Bitcoin has a legitimate value, largely because it offers several "levels" of utility. It's provable, divisible, fast, and for now, without some big restrictions. Also, there is far more and better integration into modern business systems than any competitive digital currency today.

The problem may be in the long-term bitcoin value that depends on a large number of variables. Some other, "old-fashioned" investments, such as real estate investments, also depend on a number of factors, but with technology such as bitcoin, its value depends on several thousand ways in which this currency can be improved. Confused sounds? Yes, because it is.

Why? - Because some of these ways to improve are still not fictitious. Consequently, but also paradoxically, people are seeing bitcoins as either a safe bet without negative risks or as a bubble of soap opera. These first, they believe that all this praised bitcoin potential must be paid off once and that the opportunity for profit should not be missed.

As if suddenly we are on a wild, wild west where a stereotyped salesman in the salon advises us that, if we tell people that syrup cures cough, we sell a safe pair of bottles. However, if we tell them that syrup can help in the case of problems with headache, digestion or pain in the spine, the whole crutch goes away.

Bitcoin seems to "cure" everything.

1. Mentality of the crowd

What is this about? A little lesson in psychology.

Bitter, the mindset of the crowd is a phenomenon in which people "blindly" follow every phenomenon that a few people set as a trend. Everything the group does, it will become an amine for an individual. While some other part and thoughts resist this phenomenon (such as Buffett and Grinspan among the powerful bitcoin investors), studies show that we as beings are largely influenced by other people. Moreover, scientists have determined that only 5% of the total number of a particular group is needed, which will easily carry the rest of the group (95%) in the given direction. Only 5%.

At this moment, the noise around the bitcoin is unbearably deafening. Everyone is talking about the sound, and everything that comes to the ordinary man on the boom comes "Bitcoin has reached the highest value of 15, 16, 17, 20 thousand dollars." And everyone wants a piece, while nobody wants to be a freak in an angle that's not part of the thing which mass of stories. And more and more people are involved in bitcoin investments just because someone is familiar with the investor. What is not surprising, people eventually buy from those they trust.

1. Fear of missing (FOMO / Fear of missing out)

Bitcoin has reached a value of 20 thousand dollars, now it is at 10,600. Bitcoin managed only to reach 1000 times its value in the past year, compared to the one it had at the beginning of 2017. Comparatively, the industrial giant Dow Jones, from 1997 to the present, had a growth of only 193 percent. While some bitcoins are viewed as yet another dot-com bubble, the vast majority think this is a good opportunity that must not be missed, and which will then pay off as the price of this crypt does continue to rise.

1. Awaiting the prize

Exactly. Waiting. Because expectations, and not prize-winning, are the main stimulants and cause of dopamine levels in our brains. Domapin is a hormone that makes us happy and motivated. Unlike other types of investments whose rate of return can be predicted, no one can actually "break through" bitcoin. Every day we witness a new record, a new breakthrough of yesterday's value, but also falls. Expectations grow just like the price of bitcoins, and people are easy to get on with a good feeling as they look at dizzying growth and their potential earnings. Just as, after pulling out the week at the lotus, the purchase of new lozenges is tripling.

Investment bubbles are not a new thing. Only some of the most famous are Lala bladder in the Netherlands, bladder of the South Sea, and Mississippi bladder.

Many of the psychological factors described here are precisely the reason why bitcoin has such tangible growth. And not only that, many bubbles will follow after bitcoin, we are at least sure of it.

But all the more aware of these factors, the easier it will be for you to decide if you will catch the next train or you will still think it's time to watch the wagon go without you, without regrets.