THE HUMAN EMOTIONS IN CRYPTO
In the cryptocurrency and stock markets, there is a strong sentiment. In contrast to 2008 and 2001, there is now rage, resentment, and fear. Since central banks are striving to halt inflation, which slows the economy and makes it difficult for consumers to borrow money, liquidity is the current in this situation. As the economy as a whole weakens, business will once again pick up. The credit cycle, which occurs even in the absence of a central bank, causes people to lend or borrow excessive amounts of money. When this happens, something happens at the margin, and you borrow to lend excessive amounts of money only to pull it back again.
In an effort to prevent economies from overheating due to hyperinflation, central banks work to break that cycle, but they can also create it and use it to their advantage. The cryptocurrency market and other markets are affected by this cycle's shift in asset prices. The cycle evolved into the human emotion cycle, which makes people believe they are brilliant. Investments are therefore simply an expression of who we are, and if you have a vision of who you want to be, investing will help you achieve that.
If your investment does well, you will gradually begin to reposition yourself higher. We must go through the terrible emotional inner trip when the market works against us. When you start to feel confident about your abilities in this investment game, things start to go wrong, and you start to doubt yourself. Then you overestimate the downside, and if this persists, you've started to predict that cryptocurrency would eventually go to zero. The acceptance of cryptocurrencies and blockchain technology as a new financial system, however, can be seen as a nice, smooth rising trend if you zoom out on the chart.
Everyone claims it is a bubble when the linear chart shows an increase. You anticipate that the market will keep rising, but it soon begins to decline. You begin to become enraged, which is where we are right now. People often overlook the bottom and top of the linear chart, which depicts the entire liquidity and central bank tale. We're going to ask ourselves a few questions. Has anything changed in the cryptocurrency market? There is no response. Is the blockchain technology used? Yes. Blockchain technology acceptance keeps growing, but it is actually a psychological gap and a long-term game.
When things are going on well in with our investment, we will thing we are a genius. Something we tend to let our emotion control and make bad decisions. Thanks for sharing.
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