Cryptocurrency psychology

Started by Padonag, Aug 29, 2022, 02:33 AM

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PadonagTopic starter

Guess which system is more centralized, government funds or decentralized cryptocurrencies? Cryptocurrencies are more centralized. The tweets of one person can move not only the prices of small-cap coins, but also His Majesty Bitcoin.

I love the technologies that are booming in the blockchain space. But let's first go over the disadvantages of crypto. Cryptocurrencies are not transparent, speculative. Anyone who knows when prices will collapse or soar can earn millions in minutes. Pull your quotes up and down. It turns out that this business is easier and more profitable than electric cars. You guessed it, I'm talking about Elon Reeve Musk's tweets. But the trouble is not in the Mask. In 2018, John McAfee was the most active in manipulating the market.

Naïve cypherpunks dream of making the financial system out of the control of greedy bankers and vain politicians. But human nature cannot be corrected. We are herd animals. Cryptocurrencies and any other technologies are just a tool in the hands of people. Coming out of the fire of the banking system, we find ourselves in the fire of charismatic leaders and geek coders.

Cryptocurrencies do not make people freer just because people themselves do not want to be free. The new monetary system will only redistribute funds in favor of tech geeks and celebrities. Not surprising! After all, technocracy and the attention economy have come.

If crypto does not bring more freedom, then is there any value in Bitcoin? Some call it the currency of the future. But he is bad in this quality. Too low transaction speed and high transaction fees. Others see Bitcoin's role as a store of value. But here, too, there is an obvious inconsistency. Cryptocurrency volatility is the opposite pole of stability and reliability.

So, Bitcoin is popular and its popularity will only grow. And in our current realities, technology and popularity are everything. Wait a minute, now I'm arguing my prediction. I'll start with the usual and long-existing money transfer systems such as MoneyGram or Western Union.

What is the value of the money transfer system network? In the number of branches - network nodes. It is due to the coverage of large territories by departments that we get the convenience of using the system.

The same principle applies to Bitcoin. But why is he better? Because its network is a social network. A living organism growing at the expense of our human emotions. And for the growth in the number of MoneyGram or Western Union branches, the efforts of the management of this particular business are needed. There is no natural, animal beginning in such growth.

Bitcoin, on the other hand, was designed specifically to attract new participants to its network as quickly as possible. This fact is confirmed by statistics. Greed and fear are what drives people.
The desire to benefit from the growth of quotes. Fear of not having time to jump on the outgoing train. Fear of losing one's savings held in public money subject to inflation. All of these emotions are normal. They don't need to be shy. Let's accept them as fact. Let's accept ourselves as we are. Let's take Bitcoin.

So, the main value of cryptocurrency does not come from the fact that it is good as a means of payment or a way to save money. Cryptocurrency is a network that reflects our psychology in the virtual space. The power of a network lies in the number of its nodes. And the growth of Bitcoin nodes is provided by our human emotions.

The herd doesn't care who controls it: the state with the help of laws or celebrities with their tweets. But who do we resist less - the police or idols?

As we know, when a certain critical mass is reached, the quantity turns into quality and the social network acquires new properties. For instance, it becomes more resistant to manipulation.
And even then, on top of this qualitatively new network, you can conveniently transfer value, store value in it. Why, now not a single futurologist is able to guess how exactly we will use that new social network.


I don't even know where exactly the difference between the cue ball and the shares of companies is. Is everybody used to stocks? And why should crypto be compared with "state money"?

What do they do when the dollar collapses?
That's right, they plug the hole with tax money.
If there is no tax money?
It can fall to zero, the state is bankrupt and goes for loans, announces a denomination

I don't shield crypto, it's a young tool with its pluses and minuses.
But it is curious that the distributed demand around the world will turn out to be more stable, but with a strong influence of the media or a cryptocurrency subject to local crises with plugging holes at the expense of citizens' money :)


Crypto exchanges have nothing to do with exchanges from the word at all. Their way of earning is to attract money to their accounts, in fact, to their cryptocurrency wallet, then take a percentage for any transaction and an even higher percentage for withdrawing funds from the exchange.
Actually, the exchange does not care about the ratio of different currencies in their price, since the income of the exchange does not depend on them at all.

How would you rate cryptocurrencies whose node content has no reward?
Would you rate them as decentralized?
Do you think that coin holders will be excited in maintaining a node to ensure the decentralization of the network serving the coin?


Surely, the decentralization of nodes across different countries is one thing. And the susceptibility to manipulation is different. I wanted to say that at this stage of the development of the crypt, the opinion of an individual influential person has more weight than technological research in attempts to create a working mechanism of the TAO.
How would you rate cryptocurrencies whose node content has no reward?
Would you rate them as decentralized?
Do you think that coin owners will be interested in supporting the node to ensure the decentralization of the network serving the coin?


Here you write about how an individual, such as Elon Musk, has a significant impact on the value of cryptocurrency with a few tweets. Doesn't after the speech of some Grispin - director of the central bank on changing the interest rate, does it not have a significant impact on quotes on the foreign exchange market? Is the social network as a cryptocurrency distribution network unstable? And it occurred to someone why and why it appeared, and that this is just a natural next "evolutionary step" in the world of distribution of material goods and all these questions about instability and other shortcomings of this type of money do not globally matter, that it's just " a given" of time, from which no one can escape, and to which one can only adapt or "perish"... :-\