What FOMO Means in Cryptocurrency
Many people get into the trap of FOMO and make bad decisions because FOMO is like an instant addiction. So it is essential to comprehend FOMO in the right way to not get into the trap of FOMO.
FOMO not only works in cryptocurrency but in every field. So in this article, we will discover what FOMO is in bitcoin and the terrible effects and sound effects of FOMO.
What is FOMO in Bitcoin?
FOMO in bitcoin stands for Fear Of Missing Out, which means you are frightened of missing one opportunity at a time. There are many options we get in our life, but some opportunities force us to determine at a time, and we make the decision in fear of not losing the chance whether the decision is wrong or right.
In November 2021, the price of bitcoin touched 60,000 dollars, and it was the most significant touch of bitcoin I have ever seen; there were a lot of bitcoin articles and social media posts that went viral that now bitcoin will touch 1,00,000 dollars. It was the FOMO (Fear of missing out) for many people.
By reading the articles and seeing the social media posts. So with the FOMO and without proper research, they started investing their money in bitcoin. People who already invested and earned huge profits began withdrawing their money from bitcoin by selling, and the price of bitcoin started decreasing. People who recently invested under the trap of FOMO noticed that the cost of bitcoin was declining. They also started withdrawing their money; the price of bitcoin fell up to 30,000 dollars, and many people suffered a huge loss.
FOMO in other fields
FOMO also works in other fields, not only in cryptocurrency. For example, many marketing companies run advertisement campaigns by applying the FOMO (fear of missing out) because they know they will create an emergency, and then sales happen. So people start buying products and services because there is a fear of missing out.
Consequences of FOMO in bitcoin
There are the following right and wrong effects of fear of missing out in bitcoin given below:
- Incorrect Decisions: When we feel that there is an opportunity that we can lose and do not know if it will come back or not, we end up with a decision and most of the time, decisions happen wrong. Many people make bad decisions under the pressure of FOMO, and it is the biggest mistake. There are a lot of opportunities, so you should patiently observe the situation and make the decision.
- Prediction trap: Sometimes, we make decisions under the pressure of FOMO without any research, but our choices become right, and we get the reward that we decided. Since we get tips for previous findings, we get into the prediction trap. The next time the same opportunity comes, we will take the same determination and suffer loss because most FOMO decisions are wrong.
- Unbearable push: Many people buy bitcoins or another cryptocurrency under the trap of FOMO by borrowing money from friends or family, and they get shocked after losing that money. Many people commit suicide because they lose all the money that they borrowed. So if you want to invest money in bitcoin, then do not borrow money because it is highly volatile; instead, invest money that is bearable to lose.
- Good Reward: FOMO decisions are not wrong if you have done proper research in the market. Suppose the price of bitcoin hits a very high amount, and articles and videos going viral about the cost of bitcoin will increase more. Many people will start buying bitcoin and end with a loss, but only the people will profit from it who properly researched the reason for the price pump, the previous price chart of bitcoin etc. Do not take instant decisions; instead of doing proper research, find a reason for increasing the bitcoin price and, after adequate research, come to the right decision whether you should buy now or not.