Why would a psychologist be interested in the financial market and cryptocurrencies?
Every day, someone asks me: why would a psychologist be interested in the financial market and cryptocurrencies?
Today, I decided to share my perspective on the financial system and how reading the Bitcoin white paper in 2019 completely transformed the way I see the stock market and investments.
Bitcoin revealed to me the financial system as a collective agreement on what we consider valuable. In essence, money is nothing more than a social convention. Take the dollar, for instance: it is widely accepted as a global currency, but its value is directly tied to trust in the U.S. government and the country’s economic stability. Even so, this trust can be shaken at any moment by geopolitical events or monetary policies. Similarly, gold, although it has some practical applications, is largely valued for its history as a store of value and as a physical asset with a limited supply.
In much the same way, shares of large companies on the stock market, like Apple or Tesla, reflect confidence in the future of these companies rather than having any absolute value. These shares often experience significant fluctuations based on news, market expectations, or even rumors. This shows how the value of financial assets is subjective and highly volatile, shaped more by…
