diff --git a/claims/is-why-invest.md b/claims/is-why-invest.md index 60a873c..4f1bc74 100644 --- a/claims/is-why-invest.md +++ b/claims/is-why-invest.md @@ -3,7 +3,7 @@ As has been consistently noted [2,3,8] throughout historical [market manias](../ > A [bubble](../concepts/bubble.md) starts when any group of stocks, in this case those associated with the excitement of the Internet, begin to rise. The updraft encourages [more people](../concepts/bandwagon-bias.md) to buy the stocks, which causes more TV and print coverage, which causes even more people to buy, which creates big profits for early Internet stockholders. The successful investors tell you at cocktail parties how easy it is to get rich, which causes the stocks to rise further, which pulls in larger and larger groups of investors. But the whole mechanism is a kind of [Ponzi scheme](../concepts/ponzi-scheme.md) where more and more credulous investors must be found to buy the stock from the earlier investors. Eventually, one runs out of [greater fools](../concepts/greater-fool-theory.md) -This coupled with the [weird subculture](is-weird-culture.md) of crypto assets and a [narrative economics](../concepts/narrative-economics.md) of belonging to a [high control group](../concepts/high-control-group.md) with the promises of [easy money](../concepts/ponzi-scheme.md) is a psychologically enticing proposition for a large demographic. The synthesis of the market mania and the narrative appeal of the culture and its political [imaginaries](is-narrative-economics.md) appears to be the main driver of the crypto bubble. +This coupled with the [subculture](is-weird-culture.md) of crypto assets and a [narrative economics](../concepts/narrative-economics.md) of belonging to a [high control group](../concepts/high-control-group.md) with the promises of [easy money](../concepts/ponzi-scheme.md) is a psychologically enticing proposition for a large demographic. The synthesis of the market mania and the narrative appeal of the culture and its political [imaginaries](is-narrative-economics.md) appears to be the main driver of the crypto bubble. There is also a strong sample bias in self-reported winnings of crypto assets. With partipants who make outsized returns [gambling](../concepts/gambling.md) on the [bubble](../concepts/bubble.md) are more likely to report this returns compared to the vast majority of those who lost money as guaranteed by the [negative-sum](../concepts/zero-sum-game.md) dynamics of gambling on [crypto assets](../concepts/cryptoasset.md). @@ -23,4 +23,4 @@ See [madness of crowds](../concepts/madness-crowds.md), [bubble](../concepts/bub 1. Knauer, Florian, and Andreas Mann. 2019. ‘What Is in It for Me? Identifying Drivers of Blockchain Acceptance among German Consumers’. The Journal of the British Blockchain Association, 10484. 1. Koning, J.P. 2020. ‘Bitcoin Financial Literacy and Crypto-Twitter’. American Institute for Economic Research. https://www.aier.org/article/bitcoin-financial-literacy-and-crypto-twitter/. 1. Panos, Georgios A, and Tatja Karkkainen. 2019. ‘Financial Literacy and Attitudes to Cryptocurrencies’. Available at SSRN 3482083. -1. Hellegren, Z. Isadora. 2017. ‘A History of Crypto-Discourse: Encryption as a Site of Struggles to Define Internet Freedom’. Internet Histories 1 (4): 285–311. https://doi.org/10.1080/24701475.2017.1387466. \ No newline at end of file +1. Hellegren, Z. Isadora. 2017. ‘A History of Crypto-Discourse: Encryption as a Site of Struggles to Define Internet Freedom’. Internet Histories 1 (4): 285–311. https://doi.org/10.1080/24701475.2017.1387466.