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Well, I think that might be explained due to the popularity of cryptocurrencies amongst an audience that is otherwise not economically inclined. They end up spe
by Insanity 9y ago
Well, I think that might be explained due to the popularity of cryptocurrencies amongst an audience that is otherwise not economically inclined. They end up spending some money on bitcoin due to "hearsay" or what they read in the news, and think they can quickly make a lot of money.
Without an understanding of how much can actually be lost. So when this happens, they might not think in percentages but in "how much did I just loose". Combined with the regret of "I wish I sold earlier".
This is just me speculating, I have no idea if that's what goes on in their mind, I just imagine it is.
- jgh 9y agoYoure probably not far off. I’ve been hearing TA works better on cryptocurrency markets than regular stock markets, probably because like you say it’s mostly relatively unsophisticated investors.
- ganoushoreilly 9y agoThis is actually one reason for Accredited investor certification. When you read posts about people saying they can't afford rent now because of the down swing, it's a very tricky situation and one that could / should have been prevented. It's as if the financials industry had to go through these same issues to get where it is now.
- fuzzyfroghunter 9y agoI wonder, how much of the accredited investor certification is also about protecting wealthier investors from the kind of volatility/irrationality we are seeing in cryptocurrency prices stemming from fresh and unseasoned investors?