Everything is based off Psychological Perception || Let me explain from my experience and observations

in #psychology5 years ago (edited)

It’s all about psychological perception. Value isn’t just numbers. The perception markets have on equities/digital currencies are the determining factor in the viability of awareness to the masses which then turn their focus on the company based off either pessimism or optimism. It’s about the bigger picture. The data for ensuring it has justifiable market capitalizations regardless of the books - which may or may not line up - is based off the value society in the markets view the company and its industry impacts and services.

But this could be anything. So long as the psychological perceptions are AMPLIFIED via OUTLETS of information where both young and older generations (baby boomers reading it from a news paper | generation x and z from a computer) have access.

Due to this view of information and the depth it spreads in all walks of life - grandparents reading about it from a news paper and not a computer - end up communicating the information to friends/family who may be unaware of computers - not using the net to get their news but an old fashioned word of mouth - which is chained from the previous outlet being from a news paper that WAS used as an outlet for XYZ person that they became an echo to further make aware of whatever information is being spread (becoming an echo which forms another outlet ) - so that even those who've never used a computer ( outlet X vs outlet Y ) such as older colleagues or friends - now suddenly become AWARE of said information - possibly bringing it up at the dinner table to more individuals - who ALSO now become aware of said information furthering the chain. This leads to the final section.

The more means of amplification via social outlets and networks - the wider and quicker the rate of awareness ( ROA ) becomes - leading to one of two things which ripple in activity.

Either the perception is positive. Or negative.

If it is POSITIVE - the awareness of said information spreads quicker and more rooted - as societies and their markets begin to realize the value placed for whatever XYZ service/purpose/usage by XYZ company/service.

The data is being associated with some XYZ digital currency. Greed and optimism go hand in hand - further rippling the acceptance society places on it as greed doesn't just equal money, but value in accomplishing some XYZ standard that becomes loved and desired. This leads to what some call hitting "mainstream" - and thus - cementing adoption and understanding to the initially introduced information - now formerly.

Before this happens - the early adopters are already in or were aware of said XYZ currency - seeing its value - and deciding to support it with their time, money, and energy. This tends to be positive - further cementing and eventually becoming a standard which we can see examples of with Bitcoin, Ethereum, and Litecoin. Even DOGE.

If - say a scandal broke out - depending on the context of said information - it can be seen as pessimistic and negative. If the perception of XYZ happened to be starting off and thus - had less focus and less heads turn to see - negative information would spread but would mostly only impact early adopters. An unstable asset that wasn't even properly introduced won't make headlines or affect most of society as they never even saw value or worth if they couldn't even know such XYZ existed in the first place. | The outlets that did - limited its reach and extent by having less effective spread - tailoring only to those specified starter circles.

However. If XYZ was in a state where it was in process of cementing - like paving a road - since it already went through the process and steps to being spread deeply - society and its focus are in higher states of expectations, optimisms, and hopes for said XYZ currency - if an event came out of the blue which threatened those hopes, expectations, and optimisms for what it was once believed to - that challenges and implies a state of instability - and instability implies the emotional fears and panic that one calls getting rekt.

And what happens when one person supplies their investment? Some other guy is smiling buying it on the other end having his own hopes, expectations, and beliefs. He chooses to take advantage and exploit the situation by buying at discount. And another guy with his expectations, shorting it as much as he can to the guy who believes he's getting a discount. These can be overcome if the value of what XYZ accomplishes is not easily replaceable or able to be re-introduced with society potentially rejecting it. This leads to analysis. At the end - if it all goes horribly and the news comes out even worse - eventually, every single participant will wish to remove themselves from using/surrounding themselves with XYZ. Sellers wanting to get out, and no more motivation for buyers. No more reason for buyers - no more reason to bother shorting if no one is willing to buy from you. It's a long process as people of all types will try to teeter and totter.

But it basically fades away.

Like many before - but enough to hope for another as they look and see the few that remain.

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