FUD and FOMO

What They Are and How They Affect Bitcoin

Crypto has coined and co-opted a whole new lexicon, one worthy of the Millennial generation that is adopting crypto as an alternative to old-fashioned ‘fiat.’

‘Fiat,’ for one, is a new word for most. It’s a sneering point of view that looks at government money and says it is garbage. It isn’t of course, and you cannot buy a Lambo with bitcoin but you can with dollars.

FUD is why prices fall. It’s what causes you to want to sell your cryptocurrency assets because “this might just be the end of the coin”. When news like “bitcoin is going to crash” start to spread, people tend to become weary.

This could lead to a lot of people selling off their BTC. Remember the laws of economics? When supply exceeds demand, prices drop. A drop in price is what is called “the dip”….from the popular saying “buy the dip”.

FOMO on the other hand is why prices go up. It’s what urges you to want to buy cryptocurrency assets because “everybody is cashing out big”. So for whatever reason, the value of an asset is increasing and everyone who holds this asset just can’t stop smiling.

It’s cash out season and you can’t be the only one not smiling. You don’t want to miss out…you (and pretty much everyone else) need to hold that asset too. At this point…