Exploring Crypto Psychology

May 13, 2022

As we gradually proceed towards a cashless society, the payment system around us is abruptly transforming into a digital economy; with the majority of money being transacted electronically using various online payment applications and only a small percentage of the global money expressed in physical forms of currency.

Despite the fact that society is on the cusp of becoming an advanced economy, only a minority of people are aware of the differences between cryptocurrencies and fiat currencies.

The term ‘fiat currency’ refers to money issued by the government of a country. It is not a tangible thing or commodity, but rather a legal tender backed by the government that issues it. Cryptocurrency is a digital form of payment that is completely secure, thanks to encryption technology. Traditional fiat currencies are vastly different from cryptocurrency. One can, however, buy and sell cryptocurrency or asset just like any other commodity.

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The central bank can print any amount of money it wants under the fiat currency system, which is under their direct control. This results in the concentration of fiat currency in the hands of a selected few, which further leads to development of discrimination overtime. Instead of being scrutinised by the entire public, fiat currency has become a private property.

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It has evolved from citizens’ rights to freely dictate and possess money into a reward system in which you are rewarded for your time and labour. So many people are being forced to put in more time and effort in order to obtain more fiat currency, which is quickly squandered, trapping them in a never-ending cycle of working for money.

But how did this happen?

Fear and Greed have taken over.

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Fear is a primal emotion that we may encounter. It was once utilised by our ancestors to keep them alive. Fear is not a terrible emotion, but when it is used for control, manipulation, or

intimidation, it may be harmful to people’s mental health. Where there are secrets, fear grows, giving birth to trust.

Greed is an insatiable desire for more than is required or justified, not for the greater good, but for one’s own selfish gain, at the expense of others and society as a whole.

Fear and Greed have been shown to further lead to cognitive dissonance. This refers to feelings of confusion or anxiousness, caused by a psychological conflict resulting from incongruence between beliefs and attitudes.

These are some of the outcomes of fiat currency psychology.

Let’s now take a look at the psychology of cryptocurrencies, which is a subset of Blockchain Technology.

So, how do people perceive blockchain technology?

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Transparency

When it comes to cryptocurrency, transparency is a key characteristic of Blockchain Technology. This attribute is the distinguishing aspect of blockchain technology. Transparency means that all transactions on the site are irreversible, meaning that no one can change or delete any data after it has been authenticated and embedded in the network. Transparency tends to boost productivity while also improving a sense of belongingness. Belongingness refers to the feeling that one belongs in a certain environment and may succeed there.

Transparency reduces cognitive dissonance, and blockchain is structured in such a way that the user is accountable for any activity that takes place in the blockchain technology, which cannot be erased or changed and is visible to many witnesses.

Accountability

Blockchain technology’s decentralised aspect is also targeted at accountability. Greed despises are being held accountable. The distributed ledger is a feature of blockchain technology that ensures that transactions on the blockchain are duplicated across various server sites, hence increasing accountability.

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Freedom

This refers to eradication of third parties in transactions of crypto assets or currency. Before an account can be validated in a centralised economy that uses fiat currency, one must present a government issued ID card, a social security number, drivers licence, and other documents, without which one would be unable to conduct business. This has resulted in a large number of unbanked people around the world. Therefore breeding poverty and a sense of scarcity.

In contrast, blockchain technology does not require all of these identities or banks to possess a crypto asset. All you need is a smartphone and an internet connection, and voila! You can trade, buy, and sell any crypto asset you want.

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Knowledge leads to freedom, and freedom leads to power.

Abundance

According to Peter Diamandis, in 2017, half of the world’s population had internet access. In the years 2022–2025, the entire world will have internet access: that is four billion additional consumers who will browse on the internet and would expect digital on the blockchain on demand and free services.

Technology is well known for producing abundance. Abundance of information, improved access to healthcare, and longevity. The cryptocurrency revolution is designed to create economic and financial abundance. Crypto assets are assets that everyone, regardless of nationality, educational background, gender, or age, can access. Any crypto asset’s value rises over time, redistributing wealth to the world’s population.

“Blockchain is a new way of looking at value and a new way of creating a transaction between parties where you don’t need a third party intermediary and can track things, and really have trust”Eric Pulier

Conclusion

By enhancing transparency, linking parties, and rewarding individuals for their contributions to transactions, blockchain technology has the potential to make society more trustworthy and empowered.

Blockchain technology has the ability to revolutionise customer connections for marketing and technology professionals. Companies will be in the best position to benefit from what we believe will be widespread adoption if they move quickly on this far-reaching technology.

One way to enable and create awareness of blockchain technology is: the society is gradually desensitised to scarcity mentality, allowing humanity to choose how they live and work. Its goal is to maintain money in a constant circulation, making it more accessible. People will develop an abundant mindset, as well as freedom and power.

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