The Hollywood portrayal of romantic love is a potent mix of excitement, hope, fear, and delight. The thrill of the chase, the possibility of rejection and loss, and the validation felt when mutual-connection sparks fly – it’s a rollercoaster of emotions that we are all drawn to and want to experience.
Interestingly, the emotions we feel with romantic love are not too dissimilar to those seen in crypto enthusiasts. This begs the question – are people ‘in love’ with crypto, and does the blindness we see in the heat of relationships also manifest in crypto traders? Is crypto love blind? The truth is, yes, the emotional states of fear, hope, delight, and excitement all play pivotal roles in influencing the judgement and decision-making of people in the cryptocurrency market, just as they do in the dating market.
Of all three emotions – fear, hope/delight, excitement – it is fear that has the most significant influence, such as the fear of losing money or the fear of missing opportunities. The presence of fear can lead to panic selling during market downturns, exacerbating price declines. Research indicates that fear and worry are more prevalent in traders when more rational risk-control measures such as stoploss orders are not applied, highlighting the emotional impact of market volatility.
Esta historia es de la edición July 2024 de Money Magazine Australia.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 2024 de Money Magazine Australia.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.