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Why Are People So Obsessed With Cryptocurrencies? – Orange County Register

Last week, the Securities and Exchange Commission filed two allegations against cryptocurrency platform Binance within 24 hours. coin basethe latter alleged that he was engaged in illegal securities trading within the United States.

These moves mark a significant escalation in the SEC’s efforts to regulate an industry that has long been in a regulatory gray zone.

As a result of these allegations, Coinbase’s share price fell by more than 12% on June 6, while Binance saw investors withdraw nearly $800 million from its platform in the same period.

see next: Someone paid you in cryptocurrency. Do I have to pay the tax office?

These legal actions set the stage for a lengthy litigation process that can take months or even years to resolve. As a result, many US investors who put their trust in digital assets find themselves in a state of uncertainty.

An important question remains: Are there safe places to trade cryptocurrencies?

The straightforward answer is probably “no”, at least for the time being.

Related: What happens to your cryptocurrency private keys when you die?

According to Bloomberg columnist Matt Levin, it’s a reasonable assumption that “all crypto exchanges are committing crimes, and if you’re lucky, exchanges are committing procedural crimes.” It says.

Despite all this volatility and uncertainty surrounding cryptocurrencies, many people are still enthusiastic and enthusiastic about investing in cryptocurrencies. why?

A lot of money has been created in cryptocurrencies, but a lot of money has been lost. In a world that continues to face big challenges these days, the excitement of the potential for big wins is all the more important.

see next: Cryptocurrency beginners pay attention to asset risk

Before I go any further, here is my disclaimer. I am not a wealth advisor or an investment expert of any kind. Therefore, I am not giving an opinion on whether investing in cryptocurrencies is good or bad. I am a behaviorist and an adult development facilitator. I share through my lens some of the reasons why quite a few people are riding high-risk investments like the “crypto wave” even though the odds are random.

excitement and hope

We are emerging from the devastating period of the coronavirus, which has been overlaid by the longest bear market since 1948. People are hungry for positivity and the promise of transformative possibilities.

Living generations are facing challenges as many baby boomers are not financially ready to retire at age 65 or even 70, and younger generations are saddled with student loans and other debts. and have far fewer opportunities to own their own homes. Because of these factors and other difficult situations, people are looking for solutions.

Often they tend to make decisions based on emotion rather than using logic or sound guidelines.

we are socially affected

Herd psychology, commonly referred to as crowd psychology or herd psychology, is a psychological phenomenon that has a significant impact on human behavior. It manifests when individuals within a group adopt the beliefs, behaviors, or attitudes of the majority, sometimes at the expense of their own critical thinking and personality.

This phenomenon can be observed in many aspects of everyday life, such as fashion trends, political affiliation, and investment choices.

Social media has successfully played a part in this, amplifying its influence on what appears to be popular, including investments in cryptocurrencies. FOMO (Fear of Missing Out) kicks in again, making investment decisions based on sub-optimal criteria.

we need to belong

Cryptography can be an important part of defining someone’s identity. Humans crave a strong sense of acceptance and belonging. Cultures and subcultures are based on this.

Billionaire Mark Cuban once told Forbes that Bitcoin is more a religion than a solution to a problem.

In fact, Bitcoin enthusiasts have their own jargon full of acronyms and phrases that have become the foundation of the cryptocurrency subculture language.

According to Bretton, bitcoin remains a relatively new and seemingly disruptive concept, even though it has attracted significant interest from serious investors and mainstream financial institutions. As a result, individuals who choose to invest in Bitcoin may find themselves part of a radical movement or participating in countercultural behavior.

Is this article intended to be a criticism of cryptocurrencies? Absolutely not. This only reveals what influences many people to invest in such high-risk and volatile opportunities.

In fact, in the middle of the pandemic, I invested a small amount of money in cryptocurrency. His two of my sons were thrilled with this and agreed it might be fun to see what happens after researching it.

So we each decided how much money we could afford to lose because it was considered high risk. Today, the value of that amount has fallen significantly. Is it possible that one day it will be worth more? perhaps. But I’m not betting my retirement on it.

As a thought partner to the CEO and his team, Patti Cotton helps manage complexity and change.please contact her Patti @PattiCotton.com.

https://www.ocregister.com/2023/06/18/why-are-people-so-obsessed-with-crypto/ Why Are People So Obsessed With Cryptocurrencies? – Orange County Register

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