Crypto price dips and human psychology

Author: adetorrent



This video is about a well known experiment that has been performed in different permutations. It’s the classic glass is half full vs half empty psychological experiment.

It relates perfectly why the world of crypto I think. With the high volatility of crypto, we can see large swings in the dollar value of our portfolios. This can induce certain emotions in human beings, based on our psychology and the asymmetric ways we perceive gains vs losses.

We have had a small price dip, and many will perceive this as a ‘loss’ even though they haven’t *“realised”* it - it’s only a loss once you’ve sold. Besides, is it really a “loss” if you’re now 150% up instead of 200% up? Intellectually, the answer is obvious. Psychologically, not so much.

Peace & Love,