As of the time of the writing of this article, BitCoin has eclipsed $15,000 USD/BTC, nearly double its value from a month ago. Similarly, another cryptocurrency which I tout as technologically better than BitCoin due to its more privacy friendly transactions, Monero, has nearly tripled in the same timeframe.
Just tracking the visits to my post on how to mine Monero while away from your computer for beginners, I can sense the cryptocurrency trend reaching hysterical levels. Why suddenly all the bandwagon jumpers? Is it because the reputation of fiat currency really took a beating lately? Are people actually awake to the fact that all the government spending and cheap debt will result in hyperinflation?
It might be wise to apply Occam’s razor: laypeople see BTC going nowhere but up in value and thus want to join in on the BitCoin frenzy, lest they want to be left behind. Besides, it’s all over the news nowadays too and “everyone is doing it”.
Recognizing the bubble-ness can still lead to profit. It’s a game of hot potato as you measure the world’s psychology and try to time the collapse. My Monero mining guide is a great entry to get in for no risk and you can play with the house’s money from there.
We should enjoy this historic time period where we can all look back in the future alongside crazes such as tulip bulbs, Beanie Babies and the dot-coms. It can also be grouped with failed currency alternatives like the continental American dollar.
I’ll conclude with a quote from Cialdini’s “Influence” that I think sheds some light on the mass hysteria:
The tendency to see an action as more appropriate when others are doing it normally works quite well. As a rule, we will make fewer mistakes by acting in accord with social evidence than contrary to it. Usually, when a lot of people are doing something, it is the right thing to do. This feature of the principle of social proof is simultaneously its major strength and its major weakness. Like the other weapons of influence, it provides a convenient shortcut for determining how to behave but, at the same time, makes one who uses the shortcut vulnerable to the attacks of profiteers who lie in wait along its path.
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