Effect of social sentiment on cryptocurrency assessments
Although the cryptocurrency world continues to grow and develop, one of the most important factors influencing its value is social feeling. Money Psychology – A concept created by economist Robert Kiyosaki in his 1997. In his book “A rich dad’s poor dad”, he emphasizes how people’s attitudes towards financial decisions can have a major impact on their purchase power and investment.
Money Psychology
Social mood means collective emotions, opinions and prejudices that reduce perception of the average approach to investment or activity class. It is guided by the complex interaction between cognitive prejudice, emotional reactions and cultural influence. In the context of cryptocurrency, social moods can have a major impact on its assessment.
FOMO CHILD (fear of losing)
The main factor in the social mood of cryptocurrencies is the fear of losing (phomo). The fear of losing a new opportunity to invest or experiment with financial losses due to market volatility causes a sense of urgency and anxiety, so investors can take bold shares. This can lead to a rapid increase in prices as people are trying to exploit the ability to understand.
The role of social media in modeling the feeling
Social media platforms have become an important means of disseminating information about cryptocurrencies and other investments. Platforms such as Twitter, Reddit and Social Media Groups have allowed consumers to share their thoughts, opinions and experience with others by creating a snowball effect that can enhance the market feeling.
Famous influencers and sponsorship effects
Influenza marketing has become increasingly popular in the cryptocurrency space. Numerous successful investors and traders who exploit their influence on cryptocurrency on their followers. The approval of well -known celebrities or thought leader in the sector can also have a major influence on the social feeling.
Examples of successful cryptocurrency manipulation
Several high -profile cryptocurrency events emphasized the possibilities of manipulation of social moods:
- ** Bitcoin 2017
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The value of 3 assets.
the risk of unhealthy feeling
While a healthy social mood can be useful for cryptocurrency market, unhealthy or too aggressive feeling can cause:
- Prices bubbles : Excessive optimism and phomo can create price bubbles that are difficult to explode.
- Market volatility : Increase in negative sentiment through social media can rapidly decrease prices.
- Risk of investors : Unhealthy feeling can also lead to poor decisions about poor investment solutions, as investors can focus too much on short -term income rather than long -term sustainability.
Conclusion
Social moods play an important role in modeling cryptocurrency values and assessments. While healthy social mood is necessary to direct growth and adoption, unhealthy or aggressive feeling can have negative consequences. Although the cryptocurrency market continues to develop, it is very important to understand how the social feeling influences its evaluation and to accept measures to maintain a balanced perspective.
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