This topic might help cryptocurrency users to understand an economic term
Sunk Cost Fallacy.
First, we should need to understand what Sunk Cost is, it is the cost that is lost and cannot be recovered because of such actions.
Let's start the discussion here. A lot of us do investment in cryptocurrency, we hold different coins, hoping that its market value will going to increase in the future. We should understand the economic term, sunk cost, in order to minimize the impact of losing our money based on our choices and decisions that we execute.
A lot of time, we invest, including extra time in a project that we are sure that we were not going to abandon it no matter what happens. We always think of all of our investments that we spent to the project or decision, all the hardworks and efforts are important to us not considering the future cost that it can bring.
There are some instances that the need of abandoning a decision early is guaranteed to be effective and less costly.
As early as we think that a project is going to fall in the near future, we should start to think deeply whether we should continue to support it. In order to prevent the sunk cost fallacy, we should always try to see the satisfaction or the return of investment. If the return of investment is fair, proceed. But as soon as possible, if there are much more possibility that the project will incur a negative impact to our investment, it is advisable to stop it.
Applying it to the use and utilization of Cryptocurrencies, There are altcoins that shows no hope for recovery. If we are investing to it knowing its negative state, we can stop ahead and choose a more promising altcoins.
If you think you have more suggestions on the prevention of sunk cost fallacy in cryptocurrencies, please support this thread.
Be informative, efficient and effective.
