Connect with us

Hi, what are you looking for?

Tech

Is It a Bubble? Or a Trend? What Is Crypto Mania?

Crypto Mania is not going anywhere, and it’s due to a series of economic, technological and even psychological factors. So, what exactly is it? We’ve all been experiencing Crypto Mania in the past year: Digital currency went mainstream: Retail investors and big companies alike joined the hype. All of the payment apps created crypto features. And the amount of shitcoins (digital coins with little to no value) out there is steadily growing. So, is crypto a good investment or a passing phase? Ryan Adams, Co-Founder of HZQ Consulting, explains what makes speculation surrounding the crypto market different from other types of assets and why you may want to steer clear.

How psychology comes into play

The intense energy surrounding the trading of cryptocurrency is, in part, due to the large amount of financial insecurity that exists around the country. People throw tons of money into crypto because they’re desperate; when they hear about the dramatic returns (due to its volatility), they seize the opportunity.

Pump and dumps

This desperation leads to the creation of pump and dump scams, where social media influencers create a cryptocurrency (which anyone can do), promote it on their socials to inflate the value artificially, and cash out when they’ve made a sufficient profit. All the while, the people who hopped on the trend later lose money when the valueless coin eventually crashes.

Volatility

Volatility is a big factor in Crypto Mania. The fact that digital coins are a fairly new type of asset means crypto is significantly more volatile than stock and fluctuates much more with the day’s news. For example, a story about a country imposing new legislation on crypto can cause prices to drop dramatically in days. 

Invest in the long-term

Is crypto a good investment? A tried and true strategy has always been to invest in the long term. In the case of cryptocurrency, this could mean investing in applications of blockchain technology instead of shitcoins. Cryptocurrency likely will replace credit cards as the next new financial medium, but there is no telling which coin will come to dominate that landscape in ten years. 

13 hours ago
The Norwegian Women’s Beach Handball Team Was Fined for Wearing Shorts. - https://t.co/pmzHLb7nMz
14 hours ago
New Infrastructure Bill: Why the Crypto Community Is Not Happy - https://t.co/9IbXioPRYw
15 hours ago
ScarJo vs. Disney: Why This Lawsuit Is so Significant - https://t.co/iksIL5PMCe
16 hours ago
The Olympics aren't getting the viewership it's used to. But, thanks to social media platforms like TikTok, Instagram, and YouTube, fans can see highlights and behind the scenes of the games.
Are you watching the games? If so, how? https://t.co/VAUj4HFHkh
17 hours ago
Should A Vaccine Be Mandatory? Here’s the Deal - https://t.co/VT19PKaIjL

You May Also Like

Business

A new Starbucks location isn’t just a bat signal for coffee drinkers. It is also an indicator of growing real estate values in the...

Opinion

I am a Robinhood user. I downloaded it to enter the world of investing. Some of my friends from college recommended it because it...

Politics

It’s almost been a year since the statewide lockdowns began to spread across the country. Since then, qualified Americans only received one stimulus payment....

Business

Have you ever heard that Denmark is the happiest nation in the world? In this segment on happiness, we hear from our guest host...

Copyright © 2021 Bold TV. Bold TV is owned and operated by GenBiz Inc. a 501(c)(3) non-profit organization.