Bitcoin has attracted the interest of many investors from various parts of the world. This year, the value of Bitcoin reached its highest point. The price of one of the most popular crypto commodities in the world, bitcoin hit a new high in early January, its price nearly hit U $$ 42,000 or the equivalent of IDR 588 million per coin. This time we will discuss the behavior and psychology of the market towards this Bitcoin hype.
1. Bitcoin becomes part of the buyer’s identity.
Launching from Forbes, Billionaire Mark Cuban reveals that bitcoin is more than religion in terms of solutions to any problem. Cuban is a US businessman, owner of the NBA club Dallas Mavericks, Landmark Theaters and Magnolia Pictures.
“The culture around bitcoin is part of the attraction,” said Finn Breton, professor of science and technology at the University of California Davis and author of “Digital Cash: The Unknown History of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency.”
“When you buy bitcoin, you are really buying the whole scene,” said Breton. “And that is a sight that can become part of your identity.”
Even though bitcoin is getting more attention from some serious investors and mainstream financial institutions, it’s still a somewhat subversive concept, so that people investing in it can see themselves as radical or participating in a counterculture, said Breton.
2. Social media plays a role in it
From celebrities investing in bitcoin, to the very active bitcoin community on Twitter, TikTok, and Reddit. Thus, social media is driving bitcoin’s popularity.
According to Rice University professor of marketing Utpal Dholakia, who studies consumer financial decision making, these social platforms can also drive behavior.
Research has shown that when people talk about their investments in social settings online, they tend to be more risk-seeking in the types of investments they make.
Other reasons will be discussed in the next article.