Bitcoin Goes Down From a Celebrity

[worldtraveller321]

Today I like to bring out a concern to all the people involved in the markets of cryptocurrency and even in traditional finance. There is a situation that people are unable to make a decision on anything without words being said by someone famous.

I am referring to some recent events going on within the last few weeks and months. One of them evolves around some famous celebrities such as Elon Musk. For some of you who are into cryptocurrency. You may already be familiar with names like Bitcoin and Dogecoin.
Some of you of course know the difference between a good crypto project and a bad one.

Referring to a project like Dogecoin which was created a few years ago. However the creators and developers of that crypto project have left the network sometime ago.  Which the coin itself remains in circulation. Dogecoin was very inactive for sometime until recently. Elon Musk started to bring attention to this project again. Which in many turns did start to gain much profit.

The value of this coin started to grow to very high substantial levels. Which is very interesting. Of course there was much market manipulation on this. With many wealthy people and companies putting millions of dollars into Dogecoin. Which from comments direct from Elon Musk made many other people put money into this project.

However, Dogecoin did go down in value after some comments he made while host a show on Television.  In which many people in the market started to sell their Dogecoin. All of this is just based on what some celebrity said. People are just following words of what celebrities say over going by their own knowledge and education value. Maybe in some cases people are not able to make financial decisions on their own.

In certain terms, say if your neighbour across the street decided to windmills onto his house to create power. You may not do yourself and think what he is doing is silly. However if you looked on TV and found out someone famous like Tom Cruise was putting windmills on top of his house. Then more people would actually follow that and do the same. Just proves how people are not able to think for themselves.

Referring back tp cryptocurrency. Just recently there was a drop in value of Bitcoin. This was from words said by Donald Trump at a recent event he was attending. He mentioned that Bitcoin was a scam as a way to bring protection to the US dollar. Which in same cases is what the government wants to do. However looking at the market on this. Bitcoin did go down just from his words and people selling out their Bitcoin.

Why do people have to consider words from a celebrity to be correct?

This is a case a concern for sure. People are not able to think for themselves in some case. Which can create a very dangerous situation for themselves and even an entire community with this mindset.

Why would anyone invest lots of money into a project that is quite obvious has no involvement by any people? Referring to Dogecoin and people who invested into it. This is like going to an empty store that is closed and dropping your money into the mailbox just for the fun of it.
In this case it is Elon Musk saying it would a great idea to dump money at an empty store.

That is something to think about for sure.

Perhaps you can clarify more on this. This is one question I will ask you all on this.

Do you want to be your own leader or do you need someone to tell you to run your life?

What are your thought on this? Perhaps offer some examples or elaborate more on what I mentioned.

This is could be something important to address in the future for sure.

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[mk4]

It's just simply an unfortunate truth. Some people simply have far more influence over the markets(Elon being a perfect example).

And let's not forget that bitcoin and cryptocurrencies are still likely to be mostly dumb retail investors — those people who dump the moment they see FUD, and fomo in whenever they see good news. In contrast to the stock markets whereas it's mostly heavily experienced institutional investors and only a minority is retail, hence why the stock markets are far less affected by negative news.

[Jating]

Why do people have to consider words from a celebrity to be correct?

It's because people thinks they have the 'authority', that's why majority follow their tweets and then react positively and negatlively.

This is a case a concern for sure. People are not able to think for themselves in some case. Which can create a very dangerous situation for themselves and even an entire community with this mindset.

Unfortunately, this is true, and that's why we have leaders and then we have followers. But we do have a choice though, we really need to make that important decision, not just in crypto, but it applies in every aspect of our life.

Why would anyone invest lots of money into a project that is quite obvious has no involvement by any people? Referring to Dogecoin and people who invested into it. This is like going to an empty store that is closed and dropping your money into the mailbox just for the fun of it.
In this case it is Elon Musk saying it would a great idea to dump money at an empty store.

Greed for one, they thought that they can make a lot money in Dogecoin. The whole market is full of this individuals, others became super rich, but majority losses because they chooses to follow and didn't used their common sense.

[KaliLinux]

I believe that it is the notion that MOST Investors have coming into the cryptocurrency space that is really affecting the market, "The Get Rich Quick Syndrome" Most investors believe that they can get rich easily here and they tend to react to every single statement by anyone that is notable in society out of fear of not losing their investment. They never really have the belief in what they are investing in or sees crypto as an INVESTMENT but rather, what they could easily flip to make quick money. Until that mentality is changed, we will continue to see a huge market shift due to people's words.    

[crwth]

There would be followers that would believe everything a celebrity says, and they don't care what the reason behind it or what the project means. There's no right or wrong when they follow someone.

I know from what Elon is trying to shill that it's started as a joke, but it can become the currency used daily just because of its origin. So many people are trying to justify what they have believed in. That's why facts are also correct. It's up to the investor on what he will do with that knowledge. We are social people, so sometimes, following is kind of a thing that humans do.

There are two types of people, followers, and leaders. If I were to do it, I would be a leader because I know that's what I want to be.

[Bountyangel]

Bitcoin responds to market forces I think

[Dhoe]

bitcoin responds to the market price, not influenced by the words of famous people, but we also can't blame people who have their own fans, people who believe in people who have great influence like celebrities, elon musk, tesla etc, we can't ban them, but we have to have our own principles, and we have to learn and keep learning, don't easily believe everyone's words..

[TheUltraElite]

Bitcoin responds to market forces I think

It is a speculative asset and therefore subject to market risks. I am sure the people investing in bitcoin not for the technology but for the profits have had read those "legal documents" carefully.

Sarcasm aside, bitcoin became an asset for holding money and therefore getting the attention of people who wish a new store of value beyond gold and metals. Now if someone manipulated the price, the effects will be seen and without a regulating body these effects are prominent and prone to create a public outcry. People who became influenced by them are the ones who will cry though. This is the effect of FOMO and brings in a negative outlook towards crypto, sadly nothing can be done by any of us since the ones who are having bigger influence will dominate.

A good thing that disgruntled traders can do is to stop following social media for news on crypto and people who tend to speak too much than they can about crypto. Do your own research about it and then invest, dont listen to others to buy/sell, rather do the opposite, sell when they say buy.

[AniviaBtc]

Bitcoin become famous when this pandemic comes and we can't deny that investors increase during quarantine.

I don't think that bitcoin goes down from a celebrity but hopefully that bitcoin will become more popular in the next few years, even if the pandemic ends.

Don't underestimate bitcoin's supremacy in the market, also don't forget that bitcoin proved many things to us.

[davis196]

Dogecoin was created with the sole purpose of being a "Bitcoin parody" or,should I say,a parody of every cryptocurrency and a joke.
Elon Musk turned Dogecoin into a pump&dump coin,which is disgusting.
Unfortunately,most crypto traders(and most stock traders) are acting like sheep.They just follow the trends,instead of having a good trading strategy.They just want to buy low and sell high,just by following the trend.This "strategy" eventually leads to mistakes,when they buy or sell at the wrong time.

[maydna]

bitcoin responds to the market price, not influenced by the words of famous people, but we also can't blame people who have their own fans, people who believe in people who have great influence like celebrities, elon musk, tesla etc, we can't ban them, but we have to have our own principles, and we have to learn and keep learning, don't easily believe everyone's words..

Sometimes, famous people can influence the market, and we already have seen that happened before. Like what Elon did before, the market goes down by a tweet from him. Yes, we can't blame them who follow the famous person said because we have our decision to do what we want. But it is better if we analyze before deciding something to know what is going on in the market. But if the market is down because of that famous person, I am sure that the market will rise and be back to the high price. We already have seen that to bitcoin, and this time, bitcoin will show it again to us.

[leea-1334]

Yes but remember when Bitcoin and other cryptos (DOGE) went up directly because of this same guy? Most people if you go through their post history, they will say it was a good thing,,, and then this same people got mad when he went the other direction. I think if you accept and want influencers/celebrities to pump then be ready for when they dump:)

[Kong Hey Pakboy]

Just use it to your advantage, if you know that they can  influence the market then follow them and look out for the cryptocurrencies that they are going to promote and invest in it and try to make a profit out of it.

[michellee]

Just use it to your advantage, if you know that they can  influence the market then follow them and look out for the cryptocurrencies that they are going to promote and invest in it and try to make a profit out of it.

That is what we should do if we know some good or bad news out there so we do not get the effect or at least, we can reduce the effect on ourselves. Famous people can do anything they want because they already have a big fan willing to follow what they said on their social media. So if we can see there is a chance for us to use that moment, I am sure we can make a profit and we do not have to worry or afraid with the next thing that they will say to their follower or fan.

[TheUltraElite]

Just use it to your advantage, if you know that they can  influence the market then follow them and look out for the cryptocurrencies that they are going to promote and invest in it and try to make a profit out of it.

Agreed but this does not apply to the majority of the traders. The reason whales are able to make money is because a big chunk of "traders" are newbies who fall for market traps like these and the whales cash in or cash out on them. This becomes evident in the market once the FUD/FOMO starts and now the bitcoin price is crossing 40k USD again.

Not every trader is actually able to use the opportunity and therefore the outcry that happens. But to be in this game, I suggest newbie traders to learn from these events that crypto price manipulation is common and easy to do since there is a buyer/seller group always out there to move it.

Putting more importance to social media only has bad effects, this is an example of the same.

[michellee]

Just use it to your advantage, if you know that they can  influence the market then follow them and look out for the cryptocurrencies that they are going to promote and invest in it and try to make a profit out of it.

That is what we should do if we know some good or bad news out there so we do not get the effect or at least, we can reduce the effect on ourselves. Famous people can do anything they want because they already have a big fan willing to follow what they said on their social media. So if we can see there is a chance for us to use that moment, I am sure we can make a profit and we do not have to worry or afraid with the next thing that they will say to their follower or fan.

we are just a small fish with no big power, but we can survive by going with the flow, and stealing a little food to stay afloat in the cryptocurrency market. that way we have to be cunning and clever in taking advantage of opportunities, managing all egos so that we can think calmly

Even if we think that we are small fish, that does not mean we can not use the moment to our benefit. We need to search for that chance to use it to make money, and I am sure that moment will always come to us, but that depends on how good we analyze the moment. It will no problem if we can not make a big profit at one time because we will have another time to make that big profit. And if we do not stop doing that thing, I am sure that someday we can get the chance to make a big profit.

[Lorence.xD]

Agreed but this does not apply to the majority of the traders. The reason whales are able to make money is because a big chunk of "traders" are newbies who fall for market traps like these and the whales cash in or cash out on them. This becomes evident in the market once the FUD/FOMO starts and now the bitcoin price is crossing 40k USD again.

Not every trader is actually able to use the opportunity and therefore the outcry that happens. But to be in this game, I suggest newbie traders to learn from these events that crypto price manipulation is common and easy to do since there is a buyer/seller group always out there to move it.

Putting more importance to social media only has bad effects, this is an example of the same.

Why would you worry about them though,  I think that you should worry more about yourself first before anything else plus these newbie traders is beneficial to experienced trader because they are predictable. Nothing wrong with following the trend because sometimes the trend is where the market goes.

[Wexnident]

Do you want to be your own leader or do you need someone to tell you to run your life?

What are your thought on this? Perhaps offer some examples or elaborate more on what I mentioned.

Man, if only I can make others have the same mindset as me. If only they were the minority, but noooo. Well, maybe they are, but some are using their mindset to actually adopt so as to profit, which is quite genius, in the perspective of someone who wants to profit anyway. But in the eyes of an enthusiast, it's just fanning the flames since it adds proof to the eyes of those who actually believe that what Elon ( or other celebrity) says is what would influence the market. In the long run though, it'll just damage them, but it can also damage the market.

[DapanasFruit]

I don't really understand why people will be basing their crypto decisions on some famous people or celebrities. Does it mean that here in cryptocurrency, there is that lack of value that we need celebrities to prop things up and endorse some coins or tokens? While I understand the value of marketing or advertising, we have to understand that there is a limit to its influence. Can you just imagine, buying a certain investment just because someone said so and without really looking at its real value? Elon Musk is into hyping things up and unfortunately there are a critical number of people who are listening to what he says. And this celebrity kind of thing will never stop...unless we want to.

[Obito]

I don't really understand why people will be basing their crypto decisions on some famous people or celebrities. Does it mean that here in cryptocurrency, there is that lack of value that we need celebrities to prop things up and endorse some coins or tokens? While I understand the value of marketing or advertising, we have to understand that there is a limit to its influence. Can you just imagine, buying a certain investment just because someone said so and without really looking at its real value? Elon Musk is into hyping things up and unfortunately there are a critical number of people who are listening to what he says. And this celebrity kind of thing will never stop...unless we want to.

Because they have influence and influencers can move the market and the bigger they are, the more significant their impact in the market is, that's why A-list celebrities don't voice out their opinion too much in politics or moral/spritual stuff because they can influence people. I think some economist have did an experiment about this phenomenon I just forgot the name of it and what is the method done for the study.

[SFR10]

Just proves how people are not able to think for themselves.

Exactly... Unfortunately, most of them are after an easy route to success and it usually ends badly.

Why do people have to consider words from a celebrity to be correct?

Because they only see one of their sides; The side that represents success ^{[regardless of its origin]} as opposed to the other side that is nothing but failure.

Why would anyone invest lots of money into a project that is quite obvious has no involvement by any people? Referring to Dogecoin and people who invested into it.

Probably it has to do with heavily relying on whatever the hype and the trends are about and as a result, they tend to completely ignore the obvious signs.

What are your thought on this?

The current situation isn't that promising, but as time passes, they'll realize & learn from their mistakes.

[Yatsan]

It is the downside of relying into someone we think that is superior over us and letting them run into our minds and seems to make us follow whatever they said because of the fact that they are influential to think that what they do, what they say and we obey those can put us into better place. This is not just a blame for Elon Musk but for the people as well who take part of the movement because although it can be possible for him to manipulate the market, people have given him more strength hyping up Bitcoin and after a couple of months changing his stand leaving those who follows him in air float. This must come into realization that it is just fine to follow influential people but still decision must be up into you and do not just get along with the trend. Think of it as well.