Bitcoin Bull Rally Happening, Are You Going to FOMO In?
For anyone outside of the crypto space, all the terminology may be confusing. There are terms we use all the time to talk about the industry and what’s going on. Whether we’re talking blockchain, distributed networks, PoW, PoS, or anything else, it can be hard to keep up. To help out the newcomers to the game, today we’re looking at one of the most common terms: FOMO. Seeing as bitcoin (BTC) has been going on a rally recently, this seems like the perfect time to talk about it.
Fear of Missing Out (FOMO)
The word “FOMO” is actually an acronym that stands for “fear of missing out.” But fear of missing out on what you might ask? Well, that’s the question. The acronym has been used (and is used) in all kinds of different contexts and it means something a little different depending on what you’re talking about.
Often you may here marketers talking about utilizing FOMO in consumers for selling a product or experience, especially on social media. As a social media user, you’re constantly exposed to other people. You’re seeing these people (mainly people you actually know) doing all kinds of things. Whether they’re traveling the world or eating out at expensive restaurants, you’re watching it all unfold in front of you.
In that case, people may start to feel as if they’re on the sideline. They’re not engaging, going out into the world, getting new experiences, etc. Because of that, users may be more inclined to post content more, to go out more, and to engage with the platform more. Consumers are effectively seeing everyone else out enjoying life and feel as if they’re missing out on those experiences and, more importantly for the platform, documenting them.
In the cryptocurrency space, things are a little different. Rather than being afraid that you’re missing out on experiences and adventures, FOMO refers to people afraid that they’re missing out on profitable market moves. Every time there’s a shift in the market, people notice.
For bitcoin, often the strongest FOMO is experienced when the price goes up. Since the beginning of the year, bitcoin has been declining in price. There’s no more $20,000 btc hype going around these days. Though many crypto analysts believe bitcoin will go to a much higher price, there isn’t the mania there was in December.
However, over the past week, bitcoin has been recovering strongly. This is where the FOMO happens. For a long time, someone may not care about bitcoin at all. They see it go up. They see it go down. They make fun of those invested in it when the price slumps.
But then one day the price starts going up. All of a sudden those people who invested in bitcoin aren’t so dumb anymore. Now this person is frantically learning how to even purchase bitcoin because they see the price going up and up. This is exactly where FOMO happens and watch out because we’re likely to see it happen again soon in the markets.
People start looking to jump on the bandwagon and purchase an asset as it’s climbing up and up and up. Yet the same people buying know absolutely nothing about the technology, the movement, or the market. Because of that, they’re only purchasing on hype alone and are expecting the asset to rise in value indefinitely. This can be a difficult trap to avoid.
If you’re investing in the crypto space, make sure to do your research. Never purchase an asset simply because the price is increasing and you’re afraid you’ll miss the bull run. Don’t FOMO in and waste your money, always take the time to research and have confidence in the assets you’re purchasing.
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