Bitcoin FOMO: How Our Psychology Drives The Price Of Bitcoin

Brains Byte Back

Imagine seeing someone you fancy but you don't have the courage to ask them out and then someone else does, or not going to a party, only to see numerous pictures of all your friends having fun there later on, on social media.

Now imagine this, but instead of a party or a date, you lost out on thousands of dollars. That is the crushing feeling of fear of missing out, or FOMO as it is more commonly know, and the feeling many are probably having at this very moment due to Bitcoin.

In today's episode, we will explore how this FOMO, alongside other psychological factors, influences the price of Bitcoin. You will learn, what are the biological mechanisms that happen when we are having FOMO, how the news influences public opinion of Bitcoin, and the different types of Bitcoin investors, and what separates them psychologically.

Joining us on the show is Federico De Faveri, a full-stack software engineer and Bitcoin fanatic who has closely watched this space since 2014. We discuss how "Pump and Dump" scams work in the crypto world, how trading bots with stop losses create a domino effect that can lead to price dips or rallies, and the best ways to find trustworthy Bitcoin news.

But before our chat with Faveri, we take a step back to briefly understand how Bitcoin works, how it is mined, and the technical factors that influence its price. To do this, we are joined by Nick Hansen, CEO of Luxor Technology, the largest Bitcoin mining pool in North America. Hansen shares with us an analogy to better understand how Bitcoin works, how Bitcoins are mined, and what a Bitcoin halving is.

And stay tuned to the end where we ask both these Bitcoin experts what their predictions are for Bitcoin's price in 2021.