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RE: The fallacy of measuring success and failure based on price movements
That psychological dynamic is what pushes wild swing the in the markets of any thing for centuries. That previous high becomes a focal point and it makes something a "bad" investment until it gets back there.
Then there is a wall of pressure as everyone runs for the exit now that they are "happy." Good times indeed.
Their cost of investing in steemit is so low right now that the risk to possible reward is worth a small investment at the least. Everyone should have a "speculation" amount of 10% of their investment portfolio anyway if someone needs to look at it that way.
This plus the crowd-behavior mentality. If an investment seems hot, everyone piles up on it even after it has done a good run (and thus has much less explosive potential and much more inherent danger of correcting - as old investors lock their profits).
Interestingly, a similar irrational behavior exists among curation voters - despite the fact that piling up on votes does not give the later whales any serious curation amount (compared to the first whale voters).
Very true. The dynamic of "greater fool" theory is also in play. People pile on with their chance of making money ever increasing even though they think it's a great opportunity
I think that one protection with steemit for the greater fool theory is that holders. An. To liquidate steem power too quickly.