Bitcoin is still the word around town as it happens to touch a new sky of high prices reaching up to $42000. A verdict of JP Morgan indicates that although most of the financial institutions are still in the process of warming up, yet Bitcoin could reach another high figure of approximately $146000 competing with gold. Bitcoin right now has a market value of $600 billion. Let us here discuss some of the psychological factors working in the background.
Bitcoin becomes part of your identity
Bitcoin is now going to become your new identity as billionaire Mark Cuban in a statement to Forbes called Bitcoin to be more than religion than a solution to any problem.
The experts of Bitcoin have their own phrases and technical terms like HODL and Whale. Before the economic crisis of Covid-19 Bitcoin has thousands of attendees in its conferences. Finn Breton, a renowned professor of science and technology at the University of California Davis calls the culture around Bitcoin to be appealing and attractive. He further says that the buyer of Bitcoin actually buys it into a whole scene, and this scene could actually be a part of his identity.
It is also right to say that Bitcoin is quite successful to attract a number f serious investors and mainstream financial institutions. Though bitcoin is getting more attention from some serious investors and mainstream financial institutions. Still, it seems somewhat revolutionary and innovative to step into this market radical or participating in the counterculture, Breton a critic says about Bitcoin. Visit bitcoin circuit app for more information.
Social media plays into it
The popular celebrities around the world who invest in Bitcoin and a highly-engaged bitcoin community on Twitter, TikTok, and Reddit, on other social media platforms, are infusing more popularity to Bitcoin. Lana Swartz, a recognized assistant professor of media studies at the University of Virginia in an interview with CNBC says that the trend to have a double identity of being an actor plus an investor in the financial space is on the rise.
Also, according to Utpal Dholakia professor of marketing at Rice University, who is an expert in consumer financial decision-making states in an interview that social media platforms are becoming source driving behavior. She says that the people talk about their investments in an online social environment, they in a way are showing themselves off for being an adventurer and risk-seeking personalities.
The volatility can be exciting
We find the examples of several smart investors like Kevin O’Leary and Jim Cramer of CNBC who preferred to use Bitcoin in their traveling expenditure to Vegas. Berkshire Hathaway CEO and chairman Warren Buffett criticized Bitcoin and said it to be a cryptocurrency with no value and named it a gambling device. But gambling is in itself a thrilling game which people enjoy a lot says Dholakia. We all know that checking regularly the rise and fall of stock value is something boring. But it is not the case with Bitcoin.
As Tom Meyvis, professor of marketing at New York University’s Leonard N. Stern School of Business says that checking the value of Bitcoin is something exciting as it is something that is all time changing. You can check it several times and the price keeps on changing wildly. And according to Swartz, the young generation grown in an era of video games and social networks are really thrilled with the idea of bitcoins being high-risk high-reward investments that are perfect to make sense to their adventure loving personality.
It is quite normal to see that everyone gets excited and curious about the idea of a new and possibly life-changing, technology into the world. So same is the case with Bitcoin with its continuous rising value and the mainstream financial businesses like PayPal and Square s getting into bitcoin makes it even more of a hot cake. The viral stories of the people getting immense success in the Bitcoin trade also aired Bitcoin to the peak of fame. So this is the charisma of Bitcoin. As Meyvis says that most people look upside instead of the downside and it is always easy for volatile coins like bitcoins to get these people swept up as is expected from Bitcoin.
It provides hope
Swarts says that money is a technology with which we imagine futures. The growing curiosity around Bitcoin indicates that the people younger people are having some restricted resources to generate any form of wealth. So in this uncertain situation, they got attracted towards Bitcoin which seems to them a golden opportunity hence the easiest way to get wealthy instantly.