Why are people so obsessed with Bitcoin?

Tram Ho

Bitcoin hit a new high in early January 2021, amounting to $ 42,000. According to CoinDesk, on Friday morning of last week, the price of this volatile cryptocurrency was around $ 32,500.

Tại sao mọi người lại bị ám ảnh bởi Bitcoin? - Ảnh 1.

Bitcoin is still not recognized in many countries, including Vietnam.

Bitcoin is also heating up in mainstream financial institutions. JP Morgan Chase stated in a report released in January that, in the long run, if Bitcoin’s market value reaches enough to compete with gold, the price of Bitcoin could reach $ 146,000 (market cap). Bitcoin is currently over $ 600 billion).

But Bitcoin is not just a cryptocurrency, it has become a passion for many people.

Bitcoin becomes an icon

In an interview with Forbes in December of last year, billionaire Mark Cuban stated that Bitcoin “is more of a religious belief than a solution to all problems”.

In fact, Bitcoin enthusiasts have their own jargon, full of acronyms and phrases (such as HODL and whale), the annual Bitcoin conference attracts thousands of participants as well.

“Bitcoin culture is part of its appeal,” said Finn Breton, professor of technology at the University of California. “When you buy Bitcoin, you are actually buying the entire scene, which may represent a portion of your identity,” Breton said.

Social media catalyst

From celebrities investing in Bitcoin to the highly interactive Bitcoin communities on Facebook, Twitter and Reddit, social media are all facilitating the popularity of Bitcoin.

Social platforms can also drive behavior, says Utpal Dholakia, a professor of marketing at Rice University who studies consumer financial decisions. Research shows that when users talk about investments in online social environments, they tend to look for greater risk in the type of investment they make.

Dramatic volatility

From Kevin O’leary to Jim Cramer, many smart investors compare the act of buying Bitcoin to going to Las Vegas. Warren Buffett, CEO and Chairman of Berkshire Hathaway, has long criticized Bitcoin, saying that “cryptocurrency is fundamentally worthless” and is a “gambling device”. As for gambling, “of course some people are passionate about this stimulus”, says Savji Dholakia, founder of Hari Krishna Exports.

Tom Meyvis, a marketing professor at New York University’s Stern School of Business, says regular stock price checks can be addictive. “Something like Bitcoin is interesting because it happens all the time,” and “You can test it 10 times a day while the price index can change a lot,” he said.

Fear of missing an opportunity

People are excited about the prospect of bringing a new life-changing technology into the world. Bitcoin optimists predict that the price of the cryptocurrency could reach $ 200,000 in the next 10 years. From Paypal to Square, mainstream financial firms have entered the Bitcoin field, it can be hard not to worry about a lack of Bitcoin.

Along with the spreading stories of Bitcoiners success, from Bitcoin millionaires to the “Bitcoin family”, many “cake drawings” of getting rich overnight are easy to haunt investors and public opinion.

Bitcoin fosters fragile hope

Breton says that people are very enthusiastic about Bitcoin, especially young people, they are easily obsessed with feeling “locked out of wealth”. Data from the US Federal Reserve shows that in the first half of 2020, Millennials (also known as The Anxiety Generation / echo boomers) born between 1981 and 1996 accounted for just 4.6% of the wealth. America.

“When you look at the fanaticism of Bitcoin around us, you have to see its reasons. All of this is because there is no credible mechanism, no speculation that allows people who have not yet had a large amount of talent. Estate creates wealth over time, “he said.

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Source : Genk