Stockholm Syndrome & Crypto – $trong
An appropriate place to start would be for the individual to look at oneself before entering cryptocurrency. How are these people in their everyday life, good, bad or indifferent? What has stimulated this interest in cryptocurrency? Is this an opportunity that they have visualised or are they chasing a pipedream to replace something else?
The motivation of becoming active in cryptocurrency could be one of many, however their reasoning for doing so could be pivotal in how they execute on their decisions. The internet paired with a smartphone offers anyone the chance of accessing global markets with ultimate convenience. Being able to act so freely with financial activities places a strong onus on the participant’s thought process at that time.
Generally, cryptocurrency is a high risk, fluctuating market, which can be appealing to those susceptible to gambling weaknesses. If there are personal or external issues that have previously affected the participant, this can strongly influence them into effectively betting on cryptocurrency to provide an escape from reality. The consequences of this can incur substantial financial losses. If one is not able to recognise these failures it is possible for them to continue down the slippery road and start to “revenge trade” in an unfortunate spiral where gamblers are effectively chasing their losses. This can become an addiction.
Source: Research Gate
It is important to recognise that positive addictions do not exist, as by definition, an addiction has negative outcomes and harms the participant. Unfortunately, they often continue to engage with the harmful aid behaviour or mechanism. It is important to understand that an addiction does not equal opportunity.
Naturally, there are also many positives of being involved in cryptocurrency. From a trading or investing perspective, a well thought out plan and process is being able to abide by a stringent set of rules allowing you to execute within risk limiting boundaries. This has seen many “well-schooled” individuals make profitable careers for themselves. Also, from a technological perspective cryptography offers creative individuals the chance to change the future of the world tomorrow. The number of commercial transactions carried out on the internet is increasing by the day and cryptography is central in providing security to these transactions. How we function with transactions in society is going towards cashless settlements more and more every day. From the perspective of a positive cryptocurrency participant, it is hard to envisage that cryptocurrency will not play a major role in this development, both in technology and the transactional behaviour of people due to the benefits in both user experience, time and cost.
The thoughts of respected serial entrepreneur Naval Ravikant seems to echo these thoughts about creative development becoming a key influence on the human race. “Today in society you get rewarded for creative work, for creating something brand new that society didn’t even know that it wanted that it doesn’t yet know how to get, other than through you.” (Naval Ravikant)
The above thoughts from Naval combined with further thoughts of Robert Kiyosaki, an American businessman and author, lead some people to believe that cryptocurrency will not only be an improvement in technology, but will also act as a financial hedge against devaluing national fiat. Although, Robert is primarily focused on real estate in his own business interests and not cryptocurrency, his thoughts on devaluing national fiat are still relevant why some people consider investing in cryptocurrency.
“So, the third new rule of money, I think the big mistake is: I hear so many people say it’s
important to save. That’s ridiculous! And the reason that’s ridiculous is because what
happened in 1971 is crucial. In 1971 the US dollar stopped being money. In 1971 the US dollar became a currency. And what that meant is, Richard Nixon, in 1971 the President, took us off the gold standard… It’s like giving somebody who can’t control their spending unlimited credit cards… So what’s happening is, all the savers today are losers. You know, the problem with 1971 is that the federal government keeps printing money so the value of your money keeps going down… So today I am not saving money — I am hedging. In 1997 I started investing in oil, gold and silver. So as the dollar dropped, oil, gold and silver went up. So, I am not betting so much on oil, gold and silver; I am betting against the US dollar. And that’s why this idea that you’re gonna tell people, “You need to save money” — that’s really, really an obsolete idea.” (Robert Kiyosaki)
Source: Bullion Star
In consideration of the above thoughts, the aim for some is the opportunity to capitalise on innovation, as they believe it will be more profitable that leaving money to devalue in their bank account, though this will require incisive research and risk management prior to execution. The multi-industry potential within cryptocurrency and, more widely, blockchain technology, could offer further expansion within the comes years. For now, some anticipate by the side-lines for such technological advances.
From purely a financial perspective, the total market capitalisation of cryptocurrencies (although always fluctuating) only represents approximately 0.2% share of the total market capitalisation of all assets. This suggests that even a modest amount of success will garnish some significant growth in this area.
Source: SwissOne Capital
For now, it is all rather speculative, but those with a measured approach seek to execute a well-balanced plan while managing risk, rather than an out-and-out gamble.
To summarise, it is important to identify the motives on why one has become involved (or intends to become involved) in cryptocurrency. Is it due an escalation of an addiction, where an unrealistic end goal or clouded judgement is being acted upon? Or, is this an opportunity that has been assessed and planned alongside some usable data, where a measured opportunity aims to be accomplished?
There are valid cases on both sides of this article that will affect many people in cryptocurrency, though it is the responsibility of the said participant to be acting upon responsible interests. If these interests are flawed, they are less likely to have a productive experience in the space. There will always be an element of risk against opportunity, but with a well thought out, structured plan, it may also be the opportunity of a lifetime.
“Security isn’t what the wise person looks for; it’s opportunity. And once we begin looking for that, we find it on every side. You can measure opportunity with the same yardstick that measures the risk involved. They go together.” (Earl Nightingale)
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Published at Fri, 16 Aug 2019 18:24:15 +0000
Bitcoin Pic Of The Moment
Palestra da pesquisadora do Berkman Center for Internet & Society de Harvard Yasodora Córdova, em agosto de 2017, no Olabi. Foto: Paulo Oliveira
By olabimakerspace on 2017-08-17 11:45:27
