FOMO and FUD - some thoughts

fomo-and-fud.jpg

Greetings! While the market is on the correction I want to talk about such phenomenas like FOMO and FUD.
But there was a completely different idea about what we can discuss today, and we will definitely return to FOMO later.
So, there is a world stock market. its capitalization is more than 70 trillion dollars. I think the players on the market are about a hundred million. And there is a cryptocurrency market. Its capitalization is currently 0.3 trillion dollars. Investors and traders are several tens of millions in the market.
Both markets are speculative. The big players (funds in the stock market and simply holders of a large amount of bitcoins in the crypto market) play on people's emotions and dictate the rules of the game and, using various approaches, manipulate the actions of the crowd, forcing inexperienced investors to part with their assets.
So, it's not a secret for anyone that the cryptocurrency market is now young and growing. For me, it was always a logical chain. Young - it means volatile. Young - means the processes happen faster. But I want specifics, why. Is it really only the age of the market? And then, recently, I came up with the idea of why it is really so volatile and why the processes - growth, fall, correction - are so quickly taking place in this market.
It seems to me that the key moment is the inertia of the crowd. I will explain. In the stock market, for example, corrections can take 2-3-5 years. Trend’s changes can also take place long enough. Why? All because of the number of people involved in these processes. In order for the crowd to start reacting, it takes time. And the larger the size of the crowd, the more time must pass to come into motion. But getting an enough potential for movement, it will take a long time before the crowd stops. The same is true for volatility. More people means more difficult to change the price in one direction or another. And of course, capitalization here plays not the last role.
And what does it mean for the cryptocurrency market? It turns out that, firstly, because of the small number of players on the market moving the crowd is much easier - it takes less than a day. And thus, because of the high mobility of the crowd, there are rapid corrections in the market. And secondly, a small capitalization together with a small number of people practically guarantees a strong volatility, since relatively small infusions are required to change the rate of the token. Naturally, the additional factor is the unregulated market.
Thus, if tomorrow several tens of millions of people come to the market, the market volatility will naturally become much lower and it will be much harder to make money on it. Of course it doesn't happen overnight, but that's all for this. But I am pleased with the fact that we are all at the very beginning, which gives us now almost unlimited opportunities for earning money. The main thing is to use these opportunities correctly and in time.

Sort:  

Благодаря за анализа, доста хора го усещат, но не го осъзнават и затова не могат да се възползват...имаме щастието да живеем в интересни времена!

Благодаря ти! Много полезен анализ!

Благодаря,много смислено е всичко което казваш,дай Боже повече Българи да се възползват,от тези неограничени възможности,за печелене!

Coin Marketplace

STEEM 0.04
TRX 0.33
JST 0.099
BTC 62546.27
ETH 1774.38
USDT 1.00
SBD 0.38