The Bitcoin craze and obsession has returned to the markets all around the world, soon after the BTC price skyrocketed at an all-time high price level during the start of this year.
During the first week of January this year, the prices of BTC rose to an all-time high level of $42,000. Currently, the price per coin of the leading virtual currency in the world, BTC, stands at $34,190.50.
The big companies have also joined and more are preparing to join the BTC race following a recent increase in its mainstream adoption. An example can be taken from JP Morgan, which revealed that in the long-term if the market capitalization reaches a level as high as to the level or reach the level of gold, the price of bitcoin might approach $146,000, as reported by several media agencies and newspapers. Also, learn about the bitcoin circuit software if you are interested in trading your crypto online through automated crypto trading software programs.
In this article, we discuss how and why BTC has influenced so many people across various fields and some of these people even hold an obsession for BTC. The underlying behavioral reasons for this obsession for BTC are as follows:
People associate a portion of their identity through Bitcoin
Mark Cuban, a billionaire investor believes and says that for people BTC is more of a religion than a solution to a problem.
This can be demonstrated by the examples of how the BTC enthusiasts and their community have formed their own jargons and terms related to BTC such as Whale and HODL. These terms show how these people, who are more of bitcoin enthusiasts than an average investor, have a shared sense of enthusiasm and obsession for the BTC and hence form a community.
Experts and strategists claim that the whole environment and culture built around the BTC is, in fact, a part of the whole appeal. A lot of other experts and analysts in the market hold the same belief based on their personal and collective judgments and experience of the crypto market.
Upon the purchase of the BTC, the experts believe, you are not just buying the bitcoin itself but also the whole environment, appeals, and the entire scene is being purchased and adopted by you. This entire scene then becomes a part of the individual who is purchasing the bitcoin, their identity.
Despite increased attention and adoption amongst the major institutions, companies, and individual investors, the concept of BTC is still considered to be relatively subversive. This causes the individuals, who are investing in it to consider themselves and view themselves as essential and indulging themselves in a counterculture.
Social media plays into it
There are so many digital communication platforms such as the different forms of social media, which contribute to the popularity of the BTC through the platform. These platforms could range from A tweet from a celebrity regarding bitcoin on Twitter to a trending video on other applications such as Tiktok or Facebook.
Lana Swartz, assistant professor of media studies at the University of Virginia and author of “New Money: How Payment Became Social Media,” spoke that this shows that there is a sudden new way to consider yourself, see and have an identity of oneself as a vital contributor to the financial space. there’s like a new way to see, finance, and to have an identity of yourself as an actor in the financial environment.
Utpal Dholakia, a well-reputed professor for the course of Marketing and Consumer financial decision-making at Rice University, also says that the digital and social platforms contribute to the triggering of such kind of obsessive and enthusiastic behaviors regarding the BTC. It is also pointed out in a research study, that when individuals discuss their investments on a social media platform or any other digital communication platform, there is an increase in the amount of risk they are then seeking and willing to take in the forms of investments they make. Dholakia states that a similar form of dynamic is applicable to several other investment decisions being carried out by people around the world, regardless of the geographic area where they belong to.
Investment in BTC Offers Hope
Many people believe money to be a technology, which enables us to imagine futures.
The obsession with bitcoin and the feelings of excitement associated with them, especially by the younger generations, shows that people feel “locked out of the capacity to own the types of financial assets which would enable them to further produce any type of money or wealth. According to the data of the federal reserve of the United States. People born between the years 1981 and 1996, also referred to as the Millennials, owned or controlled a proportion equal to only 4.6% of the wealth of the U.S. during the first 6 months of the last year, 2020.
Analysts say that upon observing the obsession for BTC in the communities, we should be analyzing it in part as proof of the fact that this is occurring as there are not many sources of dependable, non-speculative mechanisms through which people who don’t own any significant amounts of wealth could generate such wealth over the time. This basically represents the situation of how things and the platforms of opportunity are currently set for our younger generations.
The Last Word
These are some of the reasons we believe why people hold an obsession or enthusiasm regarding BTC. This, however, is purely subjective and can vary from person to person, depending on their perspective.
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