How and why Bitcoin rose due to FOMO

The latest cryptocurrency news regularly features articles with headlines such as “LUNA Price Sudden 300% Amid Possible FOMO Blockchain Reaction” or “Bitcoin Price at Key Support, Retail FOMO Finally Returning?”

FOMO, or fear of missing out, comes into play especially during bull markets. It may only be a matter of time before the market breaks away from the bulls again.Read this column to prepare for this time of FOMO sensitivity

peer pressure

Humans are inherently group animals, and from an evolutionary perspective, human survival depends on group membership. Some needs are difficult to fulfill on your own. Try building a sturdy hut out of your own branches, straw, and clay. It’s not that easy. To be able to work together successfully, you have to respect each other and maintain mutual respect.

Without enough respect from the group, a person runs the risk of being expelled from the group, resulting in a greater chance of death and less chance of DNA passing. This need for respect is ingrained in our DNA and is regularly triggered here and now.

Social network

There are more social triggers in life today than ever before. News is constantly coming to our smartphones, and friends share all kinds of interesting or uninteresting but positive information through social networks. We wondered why our lives were less successful than others and felt a growing need to share positive news with our team. After all, people have to have a positive impression of us.

This means creating a spiral in which “success and happiness” is increasingly emphasized. This has created an inflated (eroded and superficial) concept of “success” and “happiness”. Also, the power to tolerate mistakes and bad emotions is diminished. Roughly speaking, we humans are increasingly sensitive to shame. We started to think that success is a choice, if you are not rich or happy you are a loser and more importantly you are afraid of being seen as a loser.

What is FOMO?

As humans, we are all control freaks based on the above principles. We often compare ourselves to others and try not to stray too far from the average. Deviation creates a sense of danger.

With so much information to keep track of, we often feel a lack of control. This can lead to increased anxiety. We call this fear fear of missing out. To compensate for anxiety, we constantly check our WhatsApp, Facebook, favorite news pages and quotes.

FOMO among Bitcoin investors

Since you’re reading this column, we’re assuming you’re comparing yourself to the average cryptocurrency investor, and there’s a good chance that you’ve had a lot of discussions about cryptocurrency with other people. In this group, it is also mainly to share success, and the pressure to share success is increasing. Can’t you be the only one with below-average profits or too few tokens with great potential in your portfolio?

Even if you may not realize it, it drives your behavior. Before you know it, you’ll be buried in your smartphone again, trying to increase your profits, stacking coins compulsively, or taking your knowledge from experts.

How can you reduce the tension caused by FOMO?

Most importantly, you realize that, like anyone else with FOMO, you have a deep inner fear that you are not successful enough. Once you know you’re anxious, you have a choice: you can choose to succumb to your fears (keep comparing yourself to others, keep looking for that great coin to impress your friends) but we certainly hope you choose to accept the best strategy It’s you who realize that other people’s levels of success are often much less than they appear, and that you’re doing better than you thought.

Look at what you’ve achieved and dare to be proud of yourself. Dare to break away from the masses and use classic stock market wisdom, such as “be fearful when others are greedy, and be greedy when others are fearful.” Successful investors often do the exact opposite of the average. Turn your thoughts around and think: “I’m unique and that’s why I’m doing so well”

Source of information: Compiled from CRYPTO-INSIDERS by 0x information.The copyright belongs to the author Michael Eisink and may not be reproduced without permission

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