Fear is an Important Asset For Cryptocurrency Investors and Traders
Fear An Important Asset To Cryptocurrency Craze
As it is today, cryptocurrency prices tend to be dictated by emotion instead of market needs. Crypto prices are frantic, with significant companies holding different perspectives of the scenario. Bitmain, for example, is filing an IPO of $18 Billion. Even Facebook’s IPO can’t compare to the massive one expected by Bitmain. The $18 Billion IPO isn’t only about Bitmain; it’s about cryptocurrency in general. Such a big IPO shows the rate at which the community is growing.
Even the US Treasury office is taking notice of crypto, the office of terrorism and financial intelligence is preparing to regulate by way of enforcing their AML/KYC regulations on all corners of the globe. There is a theory on the recent unstable cryptocurrency prices related to supply & demand. But, the method hasn’t done much in the way of stopping prices from plummeting.
FOMO To FOLA
Some weird things are happening, creating a type of disconnect between cryptocurrency users and what is happening. People have an unhealthy Fear of Losing It All (FOLA), which could be beneficial to cryptocurrency investors and users. Unpredictable events in politics and trade-offs seem to be the most significant fears for traditional traders.
Recent disputes between China and the United States has created concern as has the Russian Rubble losing 12% against the US Dollar, which has also gained 40% against the Turkish Lira. Russia is an essential part of the global community as is gold, which has fallen 12% since the beginning of the year. While Turkey may not be as important as Russia and Gold when it comes to being a global financial leader, it is still part of a trend that is happening all over.
If there stocks where to correct themselves, it would be great for cryptocurrency users, but as it is now, Bitcoin prices have fallen. Investors have a fear of losing it all, making it difficult for investors to gain faith in the crypto-economy.